Unknown Brewing????

The best example I know of over-priced good beers is Stoudts. One could move around Pennsylvania offerings and find endless better values. The tone is set from the top. The Rogue folks told me 20 years ago that they wanted to be the highest retail price-point. Sometimes this psychology works, but not for long. Rogue seems to have worked this one first.

 

I've never seen or tried any of Unknown's beers, but I'd be hard-pressed to name an IPA that isn't overpriced at $14 a bomber. Just saying.

 

I think you're overstating the obvious. The bottom line is that, as a retailer, I can charge anything I want for any beer. It's really that simple. And no brewery has anything to do with it. My Budweiser/MillerCoors products are pretty much loss leaders. I don't make much on them (if anything, during certain sale weeks). The same goes for any retail store. But you need to remember that these brewers, for the most part, are in the business because they should (and I say should) understand more about their business models than we do. So, as a result, it's my belief that you should recognize that consumer demand plays less of an important role in pricing...because it's impossible to control your product pricing. If the demand for Vehopciraptor isn't good (which it actually is), then it simply won't be made again. No calculations required. Therefore, the beer wouldn't exist. But, if that's the case...scarcity can create demand (see: HopSlam).

But the brewery does NOT sell the beer to the distributor without considering the 3-tier system, and based on what I've seen, the distributor makes the most money from craft beer sales. I am a believer in Ricardian economics, but you need to consider the possibility that I have 20 cases of HDnR, and based on their velocity, I could (should?) charge $15.99 instead of $11.99, as could every other retailer. But why don't I? Because, I don't have to do so, and because as a steward for the industry, I refuse to allow price to interfere with a brewery's business.

Personally, I think you're missing my point...because based on the industry numbers, rising market share, and market demographics, I don't think price is a driving issue, or even in the top 3 of considerations for the consumer. The everyday craft beer consumer is willing to forego being "penny-wise and pound-foolish", so to speak. And economically speaking, craft beer is a relative purchase of low consumer emotional/financial investment at the retail level (not at a pub/bar, though).

 

It's a Double IPA at 9.9%, but semantics aside, that's a fair point.

 

Ive tried Vehopciraptor and think its a great beer. Hopslam is arguably the best DIPA's that can be purchased in the Carolinas and costs $0.28 per ounce ($20 six pack/ 72oz), Vehopciraptor is $0.68 per ounce ($15/22oz). We all expect to pay more per ounce when buying bombers but I personally don't care what size my DIPA is bottled. It's hard to justify paying more than twice as much as Hopslam (which is already an expensive beer) for any DIPA. Again, I think the Vehopciraptor is delicious, but there is now way I would pay $0.68 per ounce. Thank God for Duckworth's, they had 11 oz pours for $3.50 ($0.32 oz).

 

I have had several of Unknowns offerings and have been underwhelmed each time. I was really wanting to like their beers, but they have all been OK at best, no off flavors or glaring defects, but not very exciting either. Unless things change I see them going the way of 4 Friends....

 

I don't think I'm missing your point, I just think that until this post you were mostly looking at single transactions and I was looking at the long haul. I think we're mostly in agreement at this point that the way in which the brewery does affect price is that it shifts supply and demand. At some point the demand (and the price point of that demand) may mean that it doesn't make sense for the brewery to supply a certain beer, and hopefully they still have a beer in their arsenal that does make them some money or they end up out of business.

And I'm definitely with you that scarcity can drive demand. I don't believe that if HopSlam were made year-round that it'd see anything like the hype that it does. I appreciate HopSlam but I don't go out of my way for it anymore. For the last couple years I've gotten a 6-pack from my store and only drunk about half and given the rest away.

What I will question though is where price is a driving issue, or at least whether it potentially is going to be an issue. I agree that price largely doesn't change sales today for beers that are widely regarded as good. However, price is absolutely an issue for beers that are questionable, or don't have the 'Universal Stamp of Approval'. I have no doubt that Lagunitas is where it is today because of the pricing strategy they've followed (whether consciously or unconsciously I have no idea). They may solid beer (and some of it is great beer) and a very competitive price and as a result they sell a lot. The further craft beer pushes out into mainstream and starts taking over everyday drinkers the more and more important price will continue to become.

 

Still waiting, soldier. Can't wait to see what you come up with.

 

Please accept my apologies! I had you confused with the OP. I'll still buy you a beer or two for slighting you!

 

Apology accepted, I'll have a Vehopciraptor!

 

Just saying... their ginger wheat beer may be the perfect beer to pair with sushi.

 

Is that on now? Sounds delicious!!

 

-No idea. It was on September 13th. It was light with a nice strong ginger flavor that seems to disintegrate a few moments after you drink it. Great for a palate cleanser.