Is craft beer in a bubble?

patrick@shipcompliant.compatrick@shipcompliant.com Posts: 26 admin
edited May 2015 in General Discussion
What can brewers do to avoid the bubble? Or, is there even a bubble? The beer industry is changing drastically in the U.S. and consumer love it.

http://fortune.com/2015/05/16/is-craft-beer-in-a-bubble/

Post edited by Alex Oxford on
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  • Alex OxfordAlex Oxford Posts: 42 admin
    edited May 2015
    I wonder if craft beer is in a bubble or if this is just a result of consumers' consumption patterns shifting towards a preference for smaller more 'local' brands ...
    Post edited by patrick@shipcompliant.com on
  • I have questioned this a lot myself. What I see is that the craft beer industry is in a state of flux. The growth in number of breweries is pretty steady with the growth in craft beer customers, however it is exponentially larger than the growth in craft beer shelf space. I think that's where you're really going to see a paradigm shift in the craft beer industry.

    Your small to mid range breweries usually tend to focus on keg sales to distributor, but then there's the issue of fighting for tap space. Keg sales seem nice and pretty on the outside, because of the fact that you usually get the keg back, but how long it takes to get that keg back (if you even get it back) and how many retailers are willing to take the risk of putting your beer on one of their limited number of taps can be very volatile variables to deal with.

    Sorry, I'm rambling. Personally, I think the craft beer market is going to stabilize. I think you're going to see more small to mid range breweries trying to focus on doing on premise sales. That SHOULD free up more tap/shelf space for the mid to large scale breweries.

    No matter what happens, it'll be very interesting to watch the trends that form over e next couple years.
  • MikeJBeerMikeJBeer Posts: 2
    I don't think there is really a bubble but I do think the strong will survive.  With so many breweries that are opening there are a lot of people that are just jumping on the bandwagon and think it is an instant money maker.  They might throw a lot of money into marketing, a nice brewery and tasting room but the beer isn't very good.  Eventually people will not drink that beer and those breweries will be forced to improve or go away.
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