Beverage Dynamics

Beverage Dynamics May-June 2011

Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.

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The Charts A s this is written, one of the bigger brands in the craft market is going through some changes. Goose Island, the established Chicago craft brewer, was recently bought by A-B InBev. Greg Hall, son of founder John Hall, and now retired brew- master, explained why. “We needed to grow, he said. “We dropped three brands in 2010. Next step was to drop states, which means drop Goose Island reps, drop our distributors and take Goose Island beer out of our drinkers’ hands. My father was committed to add people, add jobs, not drop them. AB gave us the best chance to grow. People questioned us when we signed our distrib- ution deal with AB in 2006; they said we would dilute our beers. Didn’t happen then, not going to happen now.” The biggest problems craft beer faces right now are the problems of success: managing growth and increasing access to market. They need to expand capacity, expand sales support, and expand brand awareness, all of which costs money. None of that helps, of course, unless they can get their beer on your shelves, and the consolidation of wholesalers has many craft brewers nervous. The biggest opportunities craft beer faces tie in Full Sail is seeing signifi- cant growth in its IPA and Session beers. directly with that same success. Craft is avail- able to more drinkers than ever. While the new and different — and big and bold — do well with the experienced craft drinker, the new craft drinker may be looking for something a bit less aggressive. Robert Lauron, the VP of sales at Full Sail Brewing (Hood River, Ore.), noted growth in more accessible beers. “We are seeing particu- lar interest in our IPA and Seasonal “LTD” Lager/Pilsner line up,” he said. “As always, Session and Session Black are enjoying sub- stantial success everywhere.” The two Session beers are refresh- ing lagers that have proven strong sellers; that’s the kind of more- than-mainstream beer that could represent a huge opportunity for craft (and retailers) if the right one comes along. There’s a lot going on in this category. Extremes of all sorts abound, and new brands pop up almost every day. Like new music, there’s a seemingly limitless sup- ply of new artists and sounds, while the classics stay popular. It’s excit- ing, it’s fun…and it’s a profitable place to be. s After the initial launch 14 years ago of He’Brew, a craft beer with a catchy name, Shmaltz Brewing has become a company known for its high-end, boutique beers. Dogfish Head Craft Brewery is packaging and distributing 34 different beers this year, and is projecting growth of more than 22%. Beverage Dynamics • www.beveragedynamics.com • May/June 2011 • 49

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