{"id":2638,"date":"2015-06-16T06:00:03","date_gmt":"2015-06-16T11:00:03","guid":{"rendered":"http:\/\/www.beerbusinessunplugged.com\/?p=2638"},"modified":"2015-06-15T17:06:30","modified_gmt":"2015-06-15T22:06:30","slug":"hops-in-a-box","status":"publish","type":"post","link":"https:\/\/www.beerbusinessunplugged.com\/?p=2638","title":{"rendered":"Hops in a box…."},"content":{"rendered":"

\"Hopsetc\"<\/a>Historically, the success of any brand of beer or brewery has been relative to its market share.\u00a0 Market share size was the true measure of a brand\u2019s strength.\u00a0 While it market share is still discussed and used, it is no longer\u00a0considered the main matrix, especially in the craft segment.<\/p>\n

As mentioned in previous posts, in 1980, Coors in Kansas had a 60%+ share of market. Schlitz still had a 40% share, but was slipping.\u00a0 When looking at that picture, one could believe that Schlitz\u2019s share might bottom out at 20%.\u00a0 Of course, Schlitz imploded, sold to Stroh and eventually died.\u00a0 No one saw that coming any more than anyone saw InBev buying out AB in 2008.<\/p>\n

Published numbers today highlight size and growth of segments.\u00a0 Note the growth of IPAs and the number of not only established IPAs, but the number of new IPAs.\u00a0 When discussing craft brewers, market share is rarely highlighted but their annual production is.\u00a0 In fact, it seems that any brewer that is\u00a0mentioned almost always has increased its production either at the current time or increased production is planned leading\u00a0up to an expansion.<\/p>\n

The growth of crafts is being driven by all forms of media; and especially social medium which has created investment interest from the financial world.\u00a0 In the last month alone, there has been an increase in fielding questions from PE firms on the various distribution options available for craft brewers, including self-distribution. In addition, questions from lawyers interested in ways around franchise laws and contracts have been on the rise.<\/p>\n

By far the majority of new crafts are the very small or 5 bbl. brewers who are mostly brew pubs or tap rooms.\u00a0 Some grow bigger, some stay small, but all are taking advantage of the craft growth.\u00a0 Recently published numbers by Guestmetrics, indicate that crafts are slowing in on premise sales.\u00a0 If true, then will the question becomes: is the off premise going to be the next battle ground for growth?<\/p>\n

In a recently published interview with Meg Gill of Golden Road Brewing Co. by Beer Business Daily<\/em>, she commented that\u00a0she needed\u00a0help from some AB wholesalers in learning about the market, what are margins vs. markups and how to sell to chains.\u00a0 She stuck with it, learned the business and the brewery has grown and become viable, but the learning curve took quite a while.\u00a0 Her story is not unusual.<\/p>\n

While big money is kicking tires with potential crafts to buy existing volume, other money is moving to build new, state of the art, breweries.\u00a0 Not unlike BrewHub, but on a smaller scale.\u00a0 This money is buying not only the best equipment available, but the best and most experienced\u00a0talent in the market.\u00a0 The idea is to not only make a quality product to start, but to limit the learning curve going into market.\u00a0 Some of these operations will be up and running within the next year or two.<\/p>\n

These start up breweries, if well-funded, have the potential to shake-up the market.\u00a0 How many of these types of startups become reality and how distributors react to them remains to be seen.\u00a0 What this could become is the preferred business model to\u00a0the distributors\u00a0for crafts verses the wait and sees, starts up, under financed, small mom and pop type breweries.\u00a0 Maybe a better description for these would be: hops in a box!<\/p>\n","protected":false},"excerpt":{"rendered":"

Historically, the success of any brand of beer or brewery has been relative to its market share.\u00a0 Market share size was the true measure of a brand\u2019s strength.\u00a0 While it market share is still discussed and used, it is no longer\u00a0considered the main matrix, especially in the craft segment. As mentioned in previous posts, in […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_s2mail":"yes","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_newsletter_tier_id":0,"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[1],"tags":[],"jetpack_publicize_connections":[],"aioseo_notices":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p2xRTi-Gy","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/2638"}],"collection":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2638"}],"version-history":[{"count":12,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/2638\/revisions"}],"predecessor-version":[{"id":2661,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=\/wp\/v2\/posts\/2638\/revisions\/2661"}],"wp:attachment":[{"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2638"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2638"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.beerbusinessunplugged.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2638"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}