Heavyweight Brewing (NJ)

[Toilet Rocker]

News like this always sucks...

"As for Heavyweight, many of you have no doubt heard that we are closing up shop at the end of June 2006. We sympathize with the faction out there that feel sorry for themselves about our closing; we will also miss many of our beers. But you should not feel sorry for us. Heavyweight was designed to essentially be a one-man operation. We know that in order to allow Heavyweight to grow (as it wants to) we would have to dramatically change that basic design and we're not willing to do that. Instead, we choose to stop Heavyweight, while (in our opinion) it's on top of it's game and redirect that momentum into another project. We don't have any details for you now, except to say that it will be a pub/restaurant with a small brewery. The wheres and whens are still to be sorted out. We'll keep you posted."

--Heavyweight email update.

 

[todd_k]

So they were too successful and had to shut it down because they didn't want to grow?
I know some businesses that would love to have that problem.

 

[Cheesefood]

Sounds like they weren't able to accept the risk involved with expanding their operations. Or they were losing money for too long and had to fold and try to start anew. If their beers were that good, they'd sell the company to someone who could handle the business. Maybe they're just frustrated with their lack of distribution channels and decided to go brewpub.

I've done some research into it, and getting floorspace in a grocery/liquor store is almost impossible if you're not Bud, Miller or Coors.

 

[alemonkey]

One of the brewpubs in Nebraska started their own distributorship to make it easier to sell their beer to other bars. Our screwed up liquor laws require a brewery to go through a distributor to sell beer to any other businesses. They got tired of paying a middleman to do it, so they just hired a guy to be their salesman and did it themselves. Now they have beer on tap in 30 or so bars across the state instead of just a few like before.

 

[david_42]

Selling a one (or a few) man operation is just about impossible. My business partner is minority partner in a small HiFi company and has looked into selling it. Everybody wants both partners to stay on after the sale as employees and won't consider buying if either of them wants to leave.

 

[Cheesefood]

Selling a one (or a few) man operation is just about impossible. My business partner is minority partner in a small HiFi company and has looked into selling it. Everybody wants both partners to stay on after the sale as employees and won't consider buying if either of them wants to leave.

Of course, that minimizes competition. If I sold you my brand name and recipes, I could easily go off and start another company while you deal with the debt you purchased with my company.

A one-man company has generally proven itself to be non-profitable. (If it were profitable, you would have hired some help along the way, now wouldn't you?) Someone looking to expand would be better off trying to lure in someone with business savy to better sell the product, reduce costs and increase efficiencies. If you've proven that your product is profitable, you can find someone who's willing to assume some risk and purchase part of the company. At that point, you're working for him since he's the one who's going to save your brewery. You need someone who understands craftbrewing enough to find the optimal efficiency point where you won't suffer quality degredation.

Sounds like, in this case, the guy may have said "Screw it" to being self-employed and moved to the world of 9-5, employer assisted insurance, 401(k), steady salary, paid vacation, etc. etc. Or simply retired.

 

[Eric_Duel]

The guy who owns it used to be the 9-5 type. A computer consultant or something along those lines. The Asbury Park Press did a story on him and his success within the last year. Sounded to me like he was doing really well. It also seemed to me that he was looking to expand at the time. I don't think he gave up, I just think he has changed direction. I'd love to get an inside view of what really affacted his decision though.

 

[the_bird]

A one-man company has generally proven itself to be non-profitable. (If it were profitable, you would have hired some help along the way, now wouldn't you?)

Not necessarily. Lot of people are real cheap, and even more don't want to have to manage people. Changes the equation DRAMATICALLY, makes you a manager rather than a do-er. Lots of people just don't want to go down that route, to speak nothing of the headaches of a payroll, worrying that they might be ripping you off, all of that.

In any case, the value of any tiny shop like that, in almost any industry, is solely dependant on the entraprenuer him (or her)-self. Even if you just mow lawns, the value of the biz isn't the mowers and trucks and customer list, it's the repuation of the guy doing the cutting and his relationships with those customers. That's why a lawncare biz isn't going to be worth much if one decides to sell (thinking of this because I walk past a handmade sign for someone trying to sell their biz every morning).

For a brewery, part of it is the gear, part's the inventory, part's the value of the distribution channel, part's the contracts, part's the recipes - but the real value is the experience and knowledge of the master brewer. How much would any of us NoobS (if we have the $$) pay for the knowledge of someone like that?

The value of that kind of business is all in this intangible asset, so if the owner isn't willing to stick around for a while (to impart his knowledge on the new guys), the biz isn't worth much more than the equipment will fetch on eBay.