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I don't get it, if they're growing so fast, how are they not making enough money to support their growth? I guess that's why I'm not a business major.
 
That sucks. But there are so many other great brews out there. This may hurt them a little in the long run. Some people in those areas may not be loyal when they come back.
 
My guess is the two options besides what they are doing is to expand which takes time and they have been doing or contract brew which they probably don't want to do for a variety of reasons including quality and brand image. The problem seems to be they can't expand fast enough which is a good problem to have for them.
 
I don't get it, if they're growing so fast, how are they not making enough money to support their growth? I guess that's why I'm not a business major.

Just a guess, but I think it is because they care so much about maintaining quality. Fast expansion could mean a drop in quality when dealing with larger batches and different equipment.

Speaking as a business management major lol. :mug:
 
Just a guess, but I think it is because they care so much about maintaining quality. Fast expansion could mean a drop in quality when dealing with larger batches and different equipment.

Speaking as a business management major lol. :mug:

this is the company that has dumped whole tanks of beer because it wasn't up to snuff.
 
Guess this is why they were on sale for $8 a sixer at Kroger. Trying to get rid of their stock to make room for beers that can replenish stock......
 
I heard Sam talk about DFH growth during an interview and he said they TRY to keep their grown under 20% a year. He said they could easily grow more but they don't want to so they can maintain the quality of what they do make. I was a little stunned to hear him say that but it makes sense. Though now that they have to pull out of states to keep up with other states' demands, there's no excuse for that IMO.
 
I don't get it, if they're growing so fast, how are they not making enough money to support their growth? I guess that's why I'm not a business major.

Their brewery operates at near 100% capacity. They're brewing 24 hours a day.

The only options to grow from there is to...

1. Contract brew.

or

2. Expand your brewery.

Expanding your brewery takes time. You need more space and bigger equipment. (Mash tuns, HLT, fermenters etc....).

So it's not something that they can just do overnight. They're not NOT making more beer just because they don't want to. It's just that they can't.
 
Wait, so because someone else wants beer they cut the rest of us off?

Sure don't bother just cutting the distribution among them and sending that out to a few new ones or anything. That way there's at least some for fans in those states and a bit for the new ones.

Not like I don't have plenty of regular beers, but my gal really likes the Midas Touch and Aprihop.
 
I hereby offer up Kentucky as a sacrifice so the volunteer state can continue receiving dogfish head beer.
 
Simple economics, supply and demand.
Raise the price, sell less, and make more money.

Don't oil companies do this too?
 
http://www.dogfish.com/community/blogfish/members/sam/thanks-for-understanding.htm

due to overwhelming demand all over the country, DFH has to stop distributing to these states until they can figure out how to keep up. if you have a favorite DFH, go out and stock up if you live in Tenn., Ind., Wis., or Rhd Is.

I don't get it, if they're growing so fast, how are they not making enough money to support their growth? I guess that's why I'm not a business major.

Yeah, this seems an odd way to cope with success.
 
Dotsun - I don't think so, my friend! I would prefer Indiana be flooded and turned into a great lake.
 
This is what happens when you put a small brewery with high standards on cable network and give it a national show, demand soars above what they are comfortable with so they have to do something. I haven't looked but are these states the most recent ones added to their distribution, or are those states the ones who they supply the least to? Makes sense to me if they are pulling out of the states that buy the least until they can keep up with all the demand.


EDIT: still sucks for those of you in the states mentioned
 
Didn't Allagash do the same thing. They used to be available in Indiana, for example. I can remember Saison Dupont going away and coming back, as well as Rodenbach (still waiting to come back?).

Don't worry about DFH Tennessee, you have Yuengling.
 
Bartman said:
Simple economics, supply and demand.
Raise the price, sell less, and make more money.

Don't oil companies do this too?

Oversimplified. Where did he mention they were raising the price?

Many breweries limit themselves to relatively slow growth. Dick Yuengling mentions the practice in "Beer Wars."

Perhaps they realized that they had overextended themselves, and are now correcting.
 
I have a feeling Wisconsin people arent going find this that big of a deal.

I'm thinking of all of the WI only breweries, I normally buy local when not my own.

Pretty common here. New Glarus is pretty big only in the state. Many others have limited distribution. Surly has pulled back to only the cities to keep up.

Not too bad of a problem to have.
 
yea there is quality issues that come with growth. You need people, planning, equipment, financing. It will all work out, but better to keep it manageable, as opposed to growing to fast and losing control. i think that has a lot to do with it.

Im sure that lenders are willing to lend for expansion (or maybe even self financed?) But i think its a matter of practicality.
 
So long and thanks for all the fish...


Thats funny right there:D

I think they are making the smart move. A distributor isn't going to put up with always being out of product, so as demand goes up, they have to pull out of newer markets to supply the establised ones.
I for one am glad. I think there is an unwritten rule that as breweries get bigger, the beer gets worse. I think its ineviteable beacause you lose the capability to pick and choose your ingredients and process and maintain quality control.
 
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