Too Many Brands On The Shelf

[Thorsbrew]

This.

I realize that it is very expensive to make a high gravity, ridiculously hopped IPA in California, but one would think, that prices would be lower with all of the competition in the market.

The problem you point is a big one, and one that I have noticed. When mediocre beer is costing $11 or $12 per six, they run the risk of actually turning the consumer off to craft brew.

I have tried enough high dollar average beers, that I now think twice about trying a new, small breweries beer.

When offerings from Europe are dirt cheap (Murphys stout at $5.99 per four or Guiness products @ $7.99 per six), and large craft brewers, who we know make great beer like New Belgium, Sierra Nevada, Sam Adams, etc., are selling for $14.99 per 12, its really tough to justify paying $11-14 per 6 from a local brewery who may not be as good as the big boys.

Dont really think it is though. I remember watching a documentary awhile ago about all the costs involved in getting beer from mash tun to store shelves. From the stores cut to distributor fees (big one) to licensing fees and brewers cut (fairly small actually) and of course raw ingredients cost. And the raw ingredients cost was by far the lowest percentage of a six pack. Therefor increasing the ingredients cost wouldnt make much difference to the overall cost of a six pack. Wish i could remember the video.

 

[brewcat]

Too many mediocre brands on the shelf. I'm at a point where I'll just brew more. At least then I can assure quality.

 

[ncbrewer]

I think what needs to get corrected is the pricing. When mediocre beers are costing $10+ and awesome beers from Sierra Nevada cost $7 I'm not paying the extra $$ for a mediocre beer. Unless I can try a single bottle to try first.

Very old news, but a Consumer Reports article from 1996 covered beer manufacturing and distribution costs. Ingredients cost of regional craft beer averaged only $.09 higher per 6-pack than mass produced beer from major US brewers (BMC). This indicates (as I think common sense also tells us) that economy of scale is a huge factor. I don't think regional and smaller brewers can ever compete on pricing. Some larger craft breweries like Samuel Adams and Sierra Nevada come closer. I really wonder if the small craft breweries will last in the long term, although it's been a long time already.

 

[bob1852]

I really wonder if the small craft breweries will last in the long term, although it's been a long time already.

My prediction is that it'll be like the restaurant industry.

Every town has that one location that's always a pizza restaurant. It changes name and ownership frequently, but it's always a pizza place.

That's what I think will happen with a lot of the small breweries. They won't be profitable enough to survive long term, but continued interested parties will keep trying...

 

[bobeer]

I totally agree man. I've always said, not every beer needs to be available everywhere. After all, it's what makes being a beer fan fun... You get to see what's new on the shelves when you travel. It seems there's more and more sister breweries opening up. It's cool to go Sierra Nevada when you're in Ashville, NC and it's also fun to visit Stone in Richmond, Va but I could also get their beers already where I live before they came to the east coast.
Also, with the big boys buying up a lot of micro's, it's getting even worse and shelf space is pretty tough to get into for the more independent guys.
Luckily, I brew my own beer and only need to turn to commercial when I have an intense craving for something I don't have on hand.

I do think the bubble is far from popping and beer will only get bigger, the beer snobs will only get snobbier, the really good commercial beer with only get harder to get, and the fight against the big boys will only get worse. It's a fun thing to watch as I sit back and enjoy an independently brewed, 100% manually hand crafted, homebrew.

 

[bucfan1234]

The one thing working on side of craft brewers is that there is plenty of market share still to gain.

I think that is what is spurring these big boy buyouts of larger craft brewers. They are losing market share everyday, and they are getting nervous.

Remember what happened when independent Rolling Rock took off and was gobbling up market share and shelf space? AB bought them out, closed their brewery and took the shelf space for AB products. Relegating RR to one six pack slot of Jacksonville, FL brewed swill.

The same is coming for the big craft brewers who sell out to INbev and their lot.

 

[mongoose33]

The one thing working on side of craft brewers is that there is plenty of market share still to gain.

I think that is what is spurring these big boy buyouts of larger craft brewers. They are losing market share everyday, and they are getting nervous.

Remember what happened when independent Rolling Rock took off and was gobbling up market share and shelf space? AB bought them out, closed their brewery and took the shelf space for AB products. Relegating RR to one six pack slot of Jacksonville, FL brewed swill.

The same is coming for the big craft brewers who sell out to INbev and their lot.

I was in a bar last weekend and they had bottles of Rolling Rock. If AB shut them down, where are those coming from? Contract? If they own the brand then they haven't shut them down.

BTW, funny anecdote about RR: I attended Penn State years ago. At a local bar (the Rathskeller) they used to serve, not pitchers, but cases of Rolling Rock 7-ounce pony bottles. They'd plop a case down on the table, take your six bucks, and leave you with a church key. When they sold out, the owner decided he wouldn't support RR any more and stopped doing that.

Rolling Rock. Only beer I've ever drunk where I was hungover before I finished drinking it.

 

[bucfan1234]

Most likely the owner stopped buying RR because AB bought them out and shut down the brewery in PA. For those that are slow on the uptake, that means that AB put all those people in Latrobe out of work and the company out of business.

Then they took the branding they bought, ie the name "Rolling Rock", and brewed some garbage beer that tasted nothing like RR in a preexisting AB brewery, either in Williamsburg, VA or in Jacksonville, Fl. Then they put the new AB beer in RR branded packaging on the shelf in much, much, much smaller section of space, taking back the the independent space for AB products.

Read the new bottle. It says brewed by AB St louis, Mo, NOT Latrobe PA.

I used to love the stuff, but I will no longer buy it since it is no longer Rolling Rock in any sense other than the picture on the bottle.

Now, if I buy PA beer its Yuengling, Troegs or something from the Lion in Wilkes-Barre.

 

[bob1852]

The irony, of course, is that InBev owned Rolling Rock when Budweiser bought them.

 

[bucfan1234]

I didn't know that, but I the problem I had was AB putting all those people out of work simply to protect their market share.

That type of ruthless business practice by industry giants is why people turned to craft products in the first place.

 

[smcinco]

I was in a bar last weekend and they had bottles of Rolling Rock. If AB shut them down, where are those coming from? Contract? If they own the brand then they haven't shut them down.

BTW, funny anecdote about RR: I attended Penn State years ago. At a local bar (the Rathskeller) they used to serve, not pitchers, but cases of Rolling Rock 7-ounce pony bottles. They'd plop a case down on the table, take your six bucks, and leave you with a church key. When they sold out, the owner decided he wouldn't support RR any more and stopped doing that.

Rolling Rock. Only beer I've ever drunk where I was hungover before I finished drinking it.

Classic. I also went to school in PA. The way we'd know if they served RR at a frat party is how we felt the morning after. Terrible beer.

 

[mxstar21]

Dont really think it is though. I remember watching a documentary awhile ago about all the costs involved in getting beer from mash tun to store shelves. From the stores cut to distributor fees (big one) to licensing fees and brewers cut (fairly small actually) and of course raw ingredients cost. And the raw ingredients cost was by far the lowest percentage of a six pack. Therefor increasing the ingredients cost wouldnt make much difference to the overall cost of a six pack. Wish i could remember the video.

Distribution fees seem to be the killer. A local brewery here that has canning capabilities sells 6 packs for $8 at the brewery. They are $11 plus at the grocery store. No way I am paying that much. And the sad thing is the local beers are always more expensive than out of state craft beer.

 

[Transamguy77]

I actually started home brewing so I could make different styles because I didn't want to buy a whole case of something and not like it. I was in Pa then and it wasn't till recently that you could buy a single bottle or even a six pack you had to buy a case of beer.

I have found that most of the off the wall and big IPA stuff is not really that good and I'm left feeling disappointed after drinking it, that is enough for me to just brew more and not buy beer.

 

[Sadu]

One thing I have really enjoyed since I started brewing is being able to afford nice craft beer. Previously I would buy a dozen cheap lagers, that is what I can afford. Now instead of those dozen lagers I get a dozen homebrew and a bottle of nice craft. My homebrew is getting to a point where more often than not it's better than the bought stuff. So I tend to skip all the IPAs and pilsners which is 70% of the shelf and only really buy new styles that I'd like to brew. The research thing, basically.

 

[Ike]

I can't decide, is it:

1.) I like my homebrew because I've gotten good enough that I can really make the beer I've looked for all this time on the shelves;

OR

2.) I just THINK I've gotten good enough, and I just overrate my beer because I have "skin in the game."

Either way, I'm a lot happier with what I'm pulling from my tap than what I'm finding on the shelf, anymore. SO, with the exception of eating out and the RARE foray into the beer aisle for situations when BYO isn't an option, I'm pretty much done buying anyone else's work.

 

[smcinco]

I didn't know that, but I the problem I had was AB putting all those people out of work simply to protect their market share.

That type of ruthless business practice by industry giants is why people turned to craft products in the first place.

Hmmm. I have it on pretty good authority that August Busch went to the same school as where our president elect's daddy got him in the side door. Matter of fact, I saw his ****-eating grin on the wall of fame every time I walked into our main building's hallway. Think it's going to get better?? F AB and F Coors (yes and their merger partners).