Build Your Brand With A Tasting Room

Build Your Brand With A Tasting Room

If you are thinking about starting a brewery there are a multitude of business models to choice from: Production, Gypsy, Tasting Room and brewpub. The competition level is increases rapidly as there are over 5300 craft breweries in the US with over 2000 in planning. In a recent study by Bart Watson, Chief Economist for the Brewers found that onsite sales help grow craft beer brands. In my opinion, this is for three reasons:

1. Selling onsite has higher margins.

2. Tasting rooms are more affordable to build out than a brewpub.

3. Selling onsite whether it is a tasting room or brewpub allows the brewery to control its brand message.

A few takeaways from the study:

 Craft own-premise sales have increased to 2.3 million barrels, or approximately 9.4% of the production volume of small and independent brewers (9.5% of domestic sales volume).

70%+ of craft breweries are 1,000 barrels or less, and while they only represent 5% of craft production, with 65-70% of their sales occurring at the brewery, they account for almost 40% of craft’s onsite sales.

The average micro is now selling about 300 barrels onsite out of 1,500 total barrels of production versus the average brewpub, which is selling about 500 barrels onsite out of 700 barrels of total production.

Further evidence that micros use tasting rooms as a base to grow their distribution, rather than growing through tasting rooms can be seen in the data from microbreweries 
— Bart Watson of The Brewers Association
Forecast calls for the Father of All Tsunamis

Forecast calls for the Father of All Tsunamis

Portland Beer Week returns June 8-18th, 2017

Portland Beer Week returns June 8-18th, 2017