Beverage Dynamics

Beverage Dynamics - March 2015

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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66 Beverage Dynamics • March/April 2015 www.beveragedynamics.com T he local nature of craft beer has always been one of its most appealing features. Indeed, in the earliest days of the American craft beer movement, all craft beer was local by defi nition, as pioneering entrepreneurs opened small companies to produce an alternative to the national brands. Three decades later, a few successful, long-established craft brew- ers have achieved national scale with their beers. But the bulk of craft brewers have remained relatively small and, consequently, local in their distribution. And, because these businesses have to start small, the newest brewing companies are also local in character. According to the Brewers Association, the highest rate of growth in the craft beer category is among the microbreweries—companies producing fewer than 15,000 barrels annually. And although their volume on a national scale may be negligible, a local brewer can occupy a very visible position in their home market. The interest in all things local is such that the retailer's challenge is not how to fuel the enthusiasm, but how to keep up with and capitalize on it. Jack Bondon, vice president of Berbiglia Wine and Spirits, over- sees nine stores in the greater Kansas City, MO, area. He draws a contrast between new launches from major brewing companies and those from local players. "When larger breweries—InBev or Miller- Coors—try something new, they invest in it, they advertise, they push the beer into the market. Whereas, when the local breweries do it, it's like the beer is pulled into the market by the consumers." The attraction, as he sees it, is one part home team loyalty and one part love of novelty—local brewers being the inevitable source of more experimental brews that either are produced in very small volumes or, frankly, fail before they reach a larger market. "We try to stay up with the local breweries, to fi gure out the next thing that they're going to bring to the market," Bon- don explains. "It's a challenge as a retailer to stay on top of that. But if you fall behind and you're not carrying the next new thing, the beers become passé and you're missing sales." BUILDING A CLOSE RELATIONSHIP What is the best way for retailers to take advantage of the "pull" exerted by local beers? Successful retailers build relationships with breweries that translate into better experiences for customers. Where the laws allow, in-store tastings are a powerful draw for BY JULIE JOHNSON Selling local beers. HOMETOWN BREWS T Peco's Liquor Store in Wilmington, DE

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