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Home Brew Forums > Home Brewing Community > General Chit Chat > Bumpy forecast for craft brews?
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Old 11-16-2012, 09:13 PM   #1
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Default Bumpy forecast for craft brews?

This article highlights the possibility of a retail squeeze play by the majors......
http://www.motherjones.com/tom-philp...our-craft-brew

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Old 11-16-2012, 09:32 PM   #2
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From a business perspective it would be a smart move for the Big Two to do what is proposed in the article, and truth be told, they more than likely have the muscle to do it. I'm an optimist, though, so I'm going to keep the faith that if they do try that there will be enough resistance among consumers to put the kibosh on it. If there ever comes a day when the shelves have nothing but Big Two beers, I imagine a Prohibition Era-style underground market for craft beer will spring up.

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Old 11-16-2012, 10:13 PM   #3
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I dont shop at walmart, i try not to support anything BIG and by tht I mean industries that don't look out for the average person its hard to avoid all, but I do pretty good. Same goes for my beer, I support small and small busnesses and its not always about saving money. If I can afford to spend like this with morgage, car loan, bills, living expensis (kid on the way) all under 19k a year anyone can.

Remember lifes to short to drink sh!tty beer! Prost!

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Old 11-16-2012, 11:24 PM   #4
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I think as long as there are enough people who want good beer, there will be good beer on the shelf.
Think of it this way. Stores stock things they don't even make money on routinely, or put something on sale that they don't make money on.
Why do they do it? To get you in the door.
If one store stopped carrying good beer, many people would go to another store that stocks what they want. While they are there they pick up a couple steaks, bread, milk and whatever else they need.

The only way I see them blocking good beers if they actually made comparable beer at a cheaper price, or if they could control the market for key ingredients.
Since the ingredients are grain, water, yeast and hops, they would pretty much have to buy up the major hop farms to block the craft breweries.

I don't see it happening. Craft beer might not be a big money maker for the stores, but I know that if I need to buy beer, I go shopping at a store that is most likely to have beer I want.
Let's face it, they all have milk, bread, hamburger and whatever else in on my shopping list.

Favorite line from the article though..... "A third of the country does not drink".
Who is this third and where do they live?? I don't know many people at all who don't drink.
Some drink a lot, some only drink a little but not drinking at all??
I thought only that nut job from Portland that loves to make beer and doesn't drink fell into that category!


EnjoyGoodBeer... I'm with you. I don't step into a wally world for anything. I avoid the big box stores and all the same places that you avoid. I can't completely avoid them because they've eliminated some of the competition but I avoid them.
I also shop local whenever I can.

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Old 11-17-2012, 04:33 AM   #5
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One thing I have noticed, around here anyway, is that WalMart carries the major brands. They may have a corner for better beer but it may only be one or two. Target on the other hand (still a big large company) has about 1/4 of the beer selection Local/ Craft beers. They even label the ones that are local. The big two may be able to reach some companies and stores but as yall said before, if one store doesnt carry it, another will. If Target quits selling, I'm sure I will find another that sells crafts.

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Old 11-17-2012, 06:49 AM   #6
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I definitely agree the big two are pushing to get control of the marketplace vertically. If they can't own the craft brewers (and it may come to that increasingly) they can at least profit off the distribution of the craft brewers at worst or at best push them out of the market. I think I read recently that ABInbev is pushing hard in Illinois to get the rules changed to allow them to self-distribute if the state will allow in-state craft brewers to do it. (I guess nobody told them the privileges and immunities clause doesn't apply to corporations...)

However, their plan to control shelf space will do better at a Wal-Mart or Kroger but probably less so at a bottle shop. Although, you have to imagine these arguments really can't be taken too seriously. There's like eight Bud products on the shelf and about the same Miller and Coors. That's not "too many SKUs"?

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Old 11-17-2012, 09:47 PM   #7
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Thank You.

It's not often we're explained what is hidden between the lines:

"Craft is a real threat," because it represents a growing thirst for real beer; "but it's also an opportunity," because that thirst can be co-opted by knockoffs

A real learning experience. Look beyond what is being said to why it was said.
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Old 11-18-2012, 12:22 AM   #8
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Quote:
Originally Posted by BigPicture View Post
......"Craft is a real threat," because it represents a growing thirst for real beer; "but it's also an opportunity," because that thirst can be co-opted by knockoffs.....
Throwing out knock-offs won't be enough to co-opt the craft brew market IMO. In pre-craft beer days, maybe, but not now. They're dealing with a more educated market for one, and two, craft breweries aren't competing with them (big brewers).

If one thinks about the sheer number of styles, divisions and sub-divisions within styles, that craft brews are hitting, there is really no practical way for the big two to have a tail long enough to cover that segment. They will always be around.

They can however, monopolize the shelf space, which might work with the bigger retailers, but will likely result in smaller retailers expanding their craft shelf space in response to the opportunity.
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Old 11-18-2012, 01:25 AM   #9
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Quote:
Originally Posted by 45_70sharps
I think as long as there are enough people who want good beer, there will be good beer on the shelf.
Think of it this way. Stores stock things they don't even make money on routinely, or put something on sale that they don't make money on.
Why do they do it? To get you in the door.
If one store stopped carrying good beer, many people would go to another store that stocks what they want. While they are there they pick up a couple steaks, bread, milk and whatever else they need.

The only way I see them blocking good beers if they actually made comparable beer at a cheaper price, or if they could control the market for key ingredients.
Since the ingredients are grain, water, yeast and hops, they would pretty much have to buy up the major hop farms to block the craft breweries.

I don't see it happening. Craft beer might not be a big money maker for the stores, but I know that if I need to buy beer, I go shopping at a store that is most likely to have beer I want.
Let's face it, they all have milk, bread, hamburger and whatever else in on my shopping list.

Favorite line from the article though..... "A third of the country does not drink".
Who is this third and where do they live?? I don't know many people at all who don't drink.
Some drink a lot, some only drink a little but not drinking at all??
I thought only that nut job from Portland that loves to make beer and doesn't drink fell into that category!

EnjoyGoodBeer... I'm with you. I don't step into a wally world for anything. I avoid the big box stores and all the same places that you avoid. I can't completely avoid them because they've eliminated some of the competition but I avoid them.
I also shop local whenever I can.
Yeah I also agree with what you said. I would have said it the same if I was so enclined.
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Old 11-19-2012, 06:32 PM   #10
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Quote:
Originally Posted by nukebrewer
From a business perspective it would be a smart move for the Big Two to do what is proposed in the article, and truth be told, they more than likely have the muscle to do it. I'm an optimist, though, so I'm going to keep the faith that if they do try that there will be enough resistance among consumers to put the kibosh on it. If there ever comes a day when the shelves have nothing but Big Two beers, I imagine a Prohibition Era-style underground market for craft beer will spring up.
Agreed, you will see an explosion in bottle shops.
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