How Will You Handle the Pressure of Future Competition?

A lot of craft brewers across the U.S. are selling all the beer they can produce, and going back to their investors and the banks for more capital to expand capacity.  Others have already built out for the future on the assumption that the growth rates of the past few years will continue.  Geographic expansion is fueling a lot of the growth for more mature craft brands while new entries are gaining distribution locally.

No doubt the growth of craft will continue for a long time.  But as too many craft brands enter a market in too short a period of time, competition will enter into the picture, at a level of intensity not yet seen by most brewery owners.

The past is not a predictor of the future.  And although mainstream lagers will continue to give up enough volume to open the way for craft growth, there will be winners and losers among craft breweries.  The ability to navigate through conflicting pressures of raising money for capital equipment and sales people, managing investors and banks, and maintaining the growth you’ve promised them will determine your level of success, even more than just brewing great beer.

My clients are increasingly aware of price and distribution pressure from the bigger craft breweries and the corporate owned breweries.  All the new start up breweries are more “local” and are taking up space. The middle begins to feel squeezed.

Brewers will need to learn to compete when the going gets tough.

Brewers Advisory Group is a consulting group that specializes in helping craft brewers build value in their businesses.   We have walked in your shoes and we’re here to help.

Contact Mike Mitaro   [email protected]

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