I had a fascinating conversation with Dennis Wehrmann of Franconia Brewinga few days ago. As part of a wide ranging discussion he touched on a key issue that affects all craft brewers: the growth of the market and the growth of the craft beer segment within that market.
The key question seems to be: how do we grow the group of customers on the other side of the tap - the beer consumer. A follow-on consideration is how to do so not at the expense of behemoth beer - which is just changing how the pie is divided - but rather how to do so by increasing the number of beer consumers - making the pie bigger.
Yesterday the Craft Brewers Association released an infographic that speaks to these issues. One of the interesting facts was not the 6% craft beer growth (which falls short of previous years and current aspirations), but rather the caveat beneath that factoid: "(Total U.S. Beer Market stagnant in 2016)."
This means that growth in craft beer has been at the expense of behemoth beer ... hence the buying spree with craft breweries being snapped up right and left by big beer.
Almost on cue, this from Fortune today. Fortune suggests that the road ahead for craft breweries is M&A (mergers & aquisitions) to try to achieve economies of scale while still maintaining their independence.
We at Iconic Brewery Mangement Systems have a plan as well that doesn't involve M&A and that will achieve economies of scale as well. Contact us for more information - use the contact form below.
We will be holding a webinar as soon as we have 25 interested breweries signed up!