Why Breweries are Closing

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Why Breweries are Closing

Postby keezer » August 17th, 2017, 6:42 am

Very interesting read: http://draftmag.com/this-is-why-my-brewery-shut-down/

I absolutely think a shakeout is coming. I do not believe that you can be anywhere in the middle in terms of size. You have to be small, local, owner-operator with minimal distribution, or you need to be really big and able to afford the dramatic marketing efforts that are going to be necessary in the upcoming battle for shelf space.

For comparison, the overall metro populations are similar between Cincinnati and KC, but we have approximately half the breweries according to a quick search on http://www.brewerymap.com. That's great for taproom sales potential. Distribution seems much more challenging, though, because you have to compete with out-of-market breweries for tap handles and shelf space.
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Re: Why Breweries are Closing

Postby Jake1605 » August 18th, 2017, 6:46 pm

Ohio is a unique market. There are 6-7 other major cities within a similar proximity to Cinci. Can't compare it to KC.
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Re: Why Breweries are Closing

Postby theisti » August 19th, 2017, 10:14 am

Jake1605 wrote:Ohio is a unique market. There are 6-7 other major cities within a similar proximity to Cinci. Can't compare it to KC.

True, though I believe the comment about staying out of the middle holds true.
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Re: Why Breweries are Closing

Postby EricH » August 19th, 2017, 2:04 pm

It was inevitable. The craft beer market is not infinite. I understand about the whole "rotating taps" issue, but I have I wonder if that will stop being a major factor as newer beer geeks mature, because that is part of a pretty predictable pattern for most of us that goes something like this:

-Try a few beers - realize good beer is good
-Develop some favorite brands and drink a bunch of those - develop some sort of brand loyalty
-Get tired of the same ol' same ol' and start branching out a bit
-Go crazy - try everything, even if you think it might suck
-Start dialing it back a bit - realize that you don't have to try everything, there is plenty of good beer out there and you can't drink it all
-Conclude that you have a particular taste that is unique to you and feed that with whatever beers make you happy, no matter how many times you have had them or whether other beer drinkers see them as boring
“Hope for the best. Expect the worst. Life is a play. We're unrehearsed.” ― Mel Brooks
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