Beer Marketer's Insights
Clarification:
On-premise beer prices have actually risen slightly faster than off-premise beer prices, contrary to what we wrote last issue. The key is that wine and spirits prices have risen even faster than beer in on-premise channels, while the opposite is true off premise, BA's Bart Watson reminded us. So the opportunity for beer, in his view, has everything to do with relative pricing of the different alc bev categories. Beer has taken less price at bars and restaurants than wine and spirits, offering an argument of relative value to drinkers.
Next weekend, just after Thanksgiving, Portland, ME locals and visitors will be able to step into a brand new, high-end beer tasting experience at Allagash's brewery. The Cellars, as the space is called, will offer guided, ticketed tastings, opening with White and moving on to a selection of rare, specialty, vintage and exclusive beers, the co shared this morn. "The Cellars allows us to connect more deeply with our guests while continuing to provide a tasting experience at our home in Portland," sales and hospitality director Naomi Neville said.
Taprooms are this year's bright spot in the craft beer industry. So a coupla NY brewers are betting on that biz model in one of the priciest markets there is: Manhattan. The Bronx Brewery will open a taproom in NYC's Hudson Yards tomorrow, after adding an East Village outpost earlier this year. It'll mark co's 3rd overall taproom and 2nd in Manhattan (along with flagship production brewery/taproom in home Bronx borough). While it's a predictably tiny 1,400 sq ft space, co's Hudson Yards home will feature a 1-bbl pilot brewing system, artwork by Bronx-based artists and an open kitchen centered around a nacho food concept, Timeout reports. It can accommodate around 50 guests in the taproom, plus another 30 or so at its beer garden.
Brewers all over the country are bearing the brunt of cost increases, often unable to make up margins even after unprecedented price hikes. And that dynamic once again on display in recent Nola.com roundup citing challenges faced by some of Louisiana's largest craft cos. Here are just a few of the price increases listed by brewers thruout the article: malt +30%, grain +35%, shipping +40%, 6pk carriers +46% since 2019 and cardboard up 57% in same timeframe. Carbon dioxide also doubled at points over the summer.
A mystery brewer in Houston metro is officially on the market. Tho company name is "confidential at this time," it's listed for $625K, including 6 fermenters, 2 lagering tanks and 12-bbl brewing system, Chron reports. The unnamed brewery currently has 6 employees and "distributes its German-style beer both on- and off-premise." Its property encompasses over 5K sq ft of indoor space and 2K sq ft patio. Sale would include property and all equipment, tho it includes over $25K in inventory, $400K in furniture, fixtures and equipment and $90K in leasehold improvements, per listing. (Chron reportedly reached out to several brewers in the area; several confirmed their breweries weren't for sale but Klaus Brewing "did not respond to a request for comment.") If a sale closes, it'll mark "at least the sixth ownership change in the Houston brewery scene in the past year," article notes.
Left Hand Opening RiNo Location in Denver
Longmont, CO's Left Hand Brewing is officially opening its only location outside its hometown, tho it's staying within state lines. Left Hand RiNo opened its doors in Denver today after starting construction in Jan, with a 20-yr lease for 7,500 sq ft interior plus 2,500 sq ft patio. It features 26 taps, 7 of which pour nitro beers, along with a small pilot-brewery system. Move comes within a wk of Epic Brewing shuttering in same area. But "opening our restaurant in the RiNo neighborhood of Denver is beyond exciting to us," COO Chris Lennert told Westword. "While most know us for our Milk Stout Nitro, it gives us the opportunity to reintroduce our full lineup of beers to everyone - not just in Denver, but to the fans around the world" visiting nearby Mission Ballroom concert venue. After dropping 3 straight yrs from ~70K bbls in 2017 to just over 50K in 2020, Left Hand grew 5% last yr to 53.5K bbls, co reported to Brewers Assoc.
Wisconsin's Lakefront Brewery will sell its packaged beer exclusively in cans by early 2023. Co invested in a "new state-of-the-art canning line" that's expected to be up and running by end of Feb, wrote Milwaukee Biz Jnl. "It's hard to bring out a new product not being in a can and be taken seriously," said Lakefront owner Russ Klisch, adding that decision was largely prompted by industry trends. But switch to cans also offers environmental benefits, while expanding "the possibility to manufacture other types of beverages," per report. Co's canned products will get a "fresh look," tho won't depart too far from existing pkging.
After teaming up with FX Matt and Mass Bay to create Right Coast Spirits earlier this yr (see Jun 24 issue), MD's Flying Dog Brewery is launching its own "Killer Hard Tea," marking co's first solo offering from new beyond beer division, Gonzo Drinks. Debuting in lemon-flavored 12oz 12pk cans, Killer Hard Tea hits shelves this wk in MD and will launch "beyond Maryland beginning in January 2023," per release. The slightly carbonated black tea offering aims to "disrupt the hard tea industry" with "explosive 8% ABV, putting the tea back in party."
Stone Distributing is again building its biz, buying rights for Coronado Brewing thruout SoCal territory starting Dec, co announced. This is a sizable brand in SoCal and sizable first move for new GM Brian Fried who began role just two weeks ago, Oct 31. Total Coronado volume finished last yr near 40K bbls, and this yr sales are growing 20+% with high concentration of its biz in SoCal. Addition likely makes up for much of the 300K cases of AleSmith biz that co sold to Reyes earlier this yr. That deal preceded June acquisition of Stone Brewing by Sapporo, which did not include the distribution biz, recall.
In wide ranging conversation with Boston Beer founder/chairman Jim Koch, he paid tribute to several key figures that were instrumental in the growth and development of craft beer in the United States, the Boston Beer Company or both. Craft is now "a very meaningful category" that has "changed the way Americans and even the rest of the world thinks about American beer." It's almost "hard to imagine how different craft was" in the early days with only a "handful" of people starting craft brewers. Back when he was designing his business plan, the largest craft brewer sold 2,300 bbls in a year. His business plan called for him to max out at 5,000 bbls. Of the early craft brewers, Jim said: "I know almost all of them." He characterized them as an "island of misfit toys" from "all kind of backgrounds. This industry was created by this [wide] range of people," including "a bike mechanic in Chico" (Sierra Nevada's Ken Grossman) and "classic American jack-of-all trades" with no college ed, who "just got out of the Navy." That was Jack Macauliffe, creator of trailblazing New Albion Brewery.

