madscientist451
Well-Known Member
I came across this article, very interesting perspective:
http://draftmag.com/this-is-why-my-brewery-shut-down/
http://draftmag.com/this-is-why-my-brewery-shut-down/
Interesting no one mentioned quality of the product as a factor.
Steve Jones, owner of Pateros Creek Brewing Co. in Fort Collins, Colorado (opened 2011; closed April 2017)
But our current landlord bought block [sic] in 2015 and decided they wanted to change the look of the place. As we went down the road, the rent was never negotiable. It was always going to get higher for us. And wed always struggled with rent already, so to have it go higher wasnt an option.
Interesting no one mentioned quality of the product as a factor.
why-my-brewery-shut-down
beer-wasnt-good-enough
Undercapitalization, heavy competition, difficult to penetrate outside accounts, brand obsolescence. I absolutely love the craft beer/home brewing market, but I see so many people trying to jump from homebrewing to the pro side that are talented (or even not that talented) brewers, but not very accomplished/experienced/motivated on the business side of things and that spells disaster. Making a beer that people will drink isn't that hard (because lets face it, lots of people will drink middling-at-best beers because they just don't care or know the difference), but the best case scenario of the brewer, namely selling all of the beer that they can make, is really the worst possible thing for them as now they are forced into a roll to scale and grow a large multi-faceted business instead of focusing on what they are truly passionate about.
I think going forward, the good beer will rise to the top as always, and then breweries that have solid and disciplined leadership/management in place will survive. Many of the awesome breweries that were just riding the coattails of massive industry growth and don't have a solid financial plan to stick to, will unfortunately dry up.
Moral of the story, if you want to be a commercial brewer you're going to be increase your chances of long term success if you can partner with someone who doesn't want to brew but is capable of running a business.
Someone did:
Well tons of Hops was one way to cover up you were a bad brewer. But, now they throw in barrels, sours, fruit, coffee. Anything to drag someone in and make them think they are getting something new and special.I have 5 breweries in my hometown with another 2 set to open next year. The population is 400000. What are those breweries going to offer? Another IPA?
Making a beer that people will drink isn't that hard because lets face it, lots of people will drink middling-at-best beers because they just don't care or know the difference.
I took @Blisch comment to mean the people interviewed in the article. But would that be something they would admit to? Making not so hot beer?
I am a firm believer that, during times of recession and depression, most people don't spend less, but rather they just change the way they spend.
This is why the "craft scene" blew up the way it did.
See, people can't justify the big trip, or the new car during times of financial uncertainty, however to make up for that fact, people find new ways to escape the mundane. Instead of dropping big dough on a big ticket item, people opted to spend $3.25 on a can of beer (500ml. Ontario pricing).
Same goes for other "everyday" niceties: steaks, wine, movie theater tickets in fancy chairs and liqour service.
Now the bubble has burst. Economy is on the upswing, and people are ready to buy big items again and not pay for major beer inflation.
I have 5 breweries in my hometown with another 2 set to open next year. The population is 400000. What are those breweries going to offer? Another IPA?
,Making a beer that people will drink isn't that hard (because lets face it, lots of people will drink middling-at-best beers because they just don't care or know the difference), but the best case scenario of the brewer, namely selling all of the beer that they can make, is really the worst possible thing for them as now they are forced into a roll to scale and grow a large multi-faceted business instead of focusing on what they are truly passionate about.
/QUOTE]
IMO this is a trap in modern business thinking. You need not always 'scale and grow' to succeed. I prefer going to brew pubs rather than breweries. I don't need to buy beer to take home. I have very good beer at home. I want good beer with a meal. A person who runs a great brew pub with a staff of 12 impresses me as much (or moreso) as the person who wants to scale to employ 500. And the great brew pub can indeed focus on their passion .. great brew, great food, great ambiance.
I have 5 breweries in my hometown with another 2 set to open next year. The population is 400000. What are those breweries going to offer? Another IPA?
...every one advertised "10 beers on tap". And every one had 9 IPAs, and some random (Scotch ale, dubbel, etc) to round out the selection.
But, a smaller brewery, who focuses on in-house quality, service, food, etc, can make it. A nearby brewery started fairly large and bottled shortly after opening. They are still open, but I am a bit surprised due to the fact the food is average at best, service is below expectations most times, and they haven't really broke out in the bottled beer .
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