Posts Tagged ‘BC Business’
The So You Want to Open a Brew Pub series of blog postings is in the final stretch. I realize I’ve done several posts on market research, but not a dedicated post on industry research. What’s the difference you ask? Well, I got asked that once and, basically, market research is investigating the people (businesses) who potentially would buy your product or service. Industry research is everything else: competitors, government regulations, suppliers, etc.
A loyal reader would note we have covered government regulations and suppliers pretty thoroughly, and touched on direct competitors and less direct competition for people’s disposable income. What part of industry research have we neglected? For starters, what industry is a brew pub in? If you answered brewing, you haven’t been paying close enough attention. A brew pub is officially classified as part of the restaurant and food services industry. That is the industry most of my research and writing has focused on. However, some of the brew pubs in the province have had considerable success selling beer outside of their pub in kegs, bottles, and even cans.
The recent BC Business article on the craft brewing industry noted the success of Central City. They started making their beer available for purchase offsite. Now demand exceeds capacity, which isn’t a bad problem to have. Their rapid success isn’t unique. Several other BC craft brewers are noted as experiencing very healthy sales growth in the last few years. However, I have to caution anyone thinking of opening a brew pub that thinks Central City’s growth is the norm for new businesses in either food services or brewing. As Central City expands, less of their total revenue will come from retail sales at the brew pub and more will come from packaged product. Selling bottles, kegs, and cans for consumption elsewhere is what the brewing industry is all about.