As I mentioned in our newsletter, I often interact with entrepreneurs who are scared to grow their beer businesses. I want to poll our membership on some uncomfortable truths I have noticed working with our members over the past several years. These four uncomfortable truths may not be obvious to everyone, but they do drive the decision to scale via wholesale channels (instead of via self-distribution, more taprooms, etc).
- My decision to scale through wholesale means I am OK trading fresh beer for shelf-stable beer
- To act like a regional craft brewery, I likely have to make larger batches of fewer beer styles at a time when consumers demand more variety and more choices.
- To grow like a regional craft brewery, my brewery's overhead expense (dedicated to sales) may outgrow new revenue ($$) for a year or more before my company realizes the benefits.
- More than half of the top 50 regional craft breweries didn't grow in 2018 and several had to sell in 2019 in order to stay alive.