Surly found a distributor

Once upon a time, a certain someone told me that Surly really is going to need a distributor someday. Today I get an email informing me that I am to send my Surly orders to him from now on.

Another unnamed one once chided me because I was ordering fewer kegs from him and the company he worked for since becoming a "Surly bar." Today, he is the first brand representative employed by Surly.

It's all coming full circle.

 

I don't know about that. I think that they have been doing this long enough to see that they are at the retail price point that they should be and have just been stretching this game long enough of maximized margin through self distribution, with the knowledge that they would take the hit on margin, to be replaced by volume, with the new brewery. Keep in mind, they are also cutting overhead on distribution, as well (by shifting existing staff into other responsibilities). Given their length of time, there is no way that they havent realized that they needed to pass this off long before now. Just look at availability issues not far outside of the Twin City Metro area.

I think that they know they are maxed out on retail pricing as it is. Maybe on limited releases (and not even all of those, but can anybody think of a single year round beer that they have out there that you would still be willing to buy for $2 more per pack? An I would even extend that to Abrasive; does anybody think that beer could handle a $2 jump in price?

 

I don't find this convincing at all. If you've checked out Pentagram prices in the Northwest Metro, where there's a Surly distributor, Pentagram is on shelves for between $21.99 (rarely), $23.99 (more common), to $25.99 (only observed at 2 places). Compared to $18.99 in the 'self-distribution' footprint, that's a hefty mark-up.

I hope you're right that would 'cut overhead' & thus lower the wholesale price to keep pricing at today's levels...but I don't see it as likely. I'd love to be wrong about that.

And raising Surly four-packs by $2 apiece would absolutely hurt their sales. This isn't 2007 - there's been a good beer explosion over the past several years, in both great breweries entering the state as well as good new breweries popping up. Abrasive is already at a high price point for a crowded market - if it hits $16.99, you'll see even a lot of beer geeks popping it into their fridge less often, much less the ocassional buyer.

Maybe I'm projecting. But if Surly pricing goes up $2/4 pack & $2-4 for special releases, I know I personally am going to be buying more Founders, Dark Horse, & Steel Toe.

 

whoa, I used to work at Ramaley's as well (2002ish-2004ish). small world.

 

I actually qualified my statement about this that they might increase with limited releases. Hence, what you are seeing with Pentagram. My point was specifically about their year round beers and probably Abrasive, as well, that couldn't handle a price jump. But with something like Pentagram, that beer isn't necessarily worth $18.99 either, but people paid it because of the hype, so that same hype would cover another couple of dollars of padding on the retail shelf.

 

Slightly off-topic, but, I believe Pentagram is a reasonably priced American Wild Ale. Those things take time, space, and therefore money, especially when you are barrel aging it.

 

Fair enough, we'll have to agree to disagree on their year-round beers. But just the fact that you now routinely see Furious that's 4-6 weeks or older on the shelf (which rarely happened a couple years ago) tells me that competition is having an effect on Surly's lineup. A price jump would have another impact, IMHO.

Of course, all they'd have to do is expand to Chicago to sell all the year-round beer they could make.

But I do believe there's a price barrier above which things have to be incredible, not just really good, & I (arbitrarily) believe that price is about $20. Borne out by the fact you can still find Pentagram liberally sprinkled in the NW Suburbs but it's only lingering in hideaways elsewhere in the metro. When beer gets that expensive, $3-5 can push it from the "Gee, I'll try it" realm to the "Gee, that's ridiculous" realm.

We'll see. I hope prices change little, if at all, but my pessimism pole is waving.

 

Ive talked to several stores that have noted that Surly sales are down(as well as other hop forward brews) since Saga came out. Would guess even more so since the twelve packs came out. You already can get a 12pk for only a couple bucks more then a 4pk, any price increase would only make the choice easier for some.

 

I'd love it if getting a distrubutor somehow lowers the prices in the NW metro. Seems like wishful thinking though.

Enjoy your 10.99 Furious and 16.99 Abrasive, rest of the metro!

 

I don't see how we are agreeing to disagree. From what I have read, we have been saying the exact same thing and are more accurately agreeing to agree. The year round beers can't take a price increase without seeing a huge dip in sales and their limited releases can absorb some padding and most likely will. And the reason that they can and will absorb price increases is because of things like what you said about having an arbitrary cut off at $20 and redblack75 saying that at $19, he thinks that is a reasonable price. Not that I haven't paid those prices for beer (some Russian River "tion" beers, Firestone anniversary beers, Cantillons, et al), but that is all A++ territory. I think that many people are far too generous to what they will pay for many beers. Of course, that is a whole other conversation with a wide spectrum of perspective on "worth" of bombers:

http://beeradvocate.com/community/t...it-on-22-oz-bottles.88694/page-3#post-1306613

My opinion from that thread:

$6 is the ceiling for really good beer that only comes in that size. $10 for something more exceptional and/or rare, usually when traveling. $11-$15 solid aging beer. $16 - $20, I will rarely pay this, but have for beers that I know have required a lot of effort and resources to make AND I know that the results are worth it.

 

So will Surly be available everywhere in the metro or do we have to wait until the new brewery is online?

 

Last week Surly employees delivered the beer. This week Surly employees stopped delivering and a distributor, Johnson Bros, started. In general terms that is the only change so far.

 

So if there is going to be any price increase, the change would likely be imminent.

 

Correct.

 

Time to "brace for impact", eh?

 

Well as of now nothing's changed. I picked up some Surly yesterday at my regular store and they got their delivery yesterday. I'm hoping the price is maintained

 

We received our weekly Surly delivery yesterday from Johnson Brothers. No price increase. My guess is if they were going raise the price, it would have been right away.

 

My rep said there would be no price increase, and he was correct. Cheers folks, this won't change the amount of beer they have to offer however, that will have to wait until the new brewery is running.

 

So, if the price didn't increase at previously self distributed stores, will it DECREASE at other locations? That was always the excuse for higher prices. "We don't get the beer directly from Surly, we're supplied by a distributor".

$16.99 Abrasive, $25.99 Darkness, $27.99 Syx and Pentagram.....I've see all these prices at stores supplied by distributors.

 

Along those lines, does Surly have two metro distributors now (the one they previously had for the NW metro, and a new one for their previously self-distributed area), or does there NW metro distributor handle them over the whole metro now?