B.C. Beer Blog

The who, what, where, when, why, and how of B.C. craft beer

Posts Tagged ‘BC Business

The Business of Craft Beer

leave a comment »

BCB Business of Craft Beer EventAccording to Jan Zeschky’s reckoning, there will be 22 new craft breweries opening in British Columbia this year — that is, 22 he is aware of. This will bring the total number of BC craft breweries and brewpubs to 85.

So if we assume, on average, that each brewery will produce six beers annually (four core, two seasonals), that amounts to 510 BC craft beers. That is equal in number to 84% of all beers currently sold in the 197 BC government liquor stores, only you won’t find even close to that number of local craft beers actually sold there.

This makes for an increasingly competitive landscape, putting more pressure on startups to have a solid business plan. Read the rest of this entry »

A Question from the Audience

with 4 comments

Big River brewpub, Richmond, BCWhen I wrote the “So You Want To Open A Brew Pub” series of blog posts here as a guest blogger, I didn’t have any grand ambitions beyond giving back to the community and sharing some knowledge. The series has proven fairly popular. Today, someone who I apparently met while working for Building Opportunities with Business, put two and two together and sent me a couple follow up questions. I decided to share the answers with the rest of our readers.

Have you come across any stats/articles for the size of craft beer marketing budgets? How are they making a name for themselves in the face of the dominance of the big breweries?  Read the rest of this entry »

SYWTOABP: Industry Research

with one comment

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. Porter's Five Forces for Canadian Brewing Industry

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.

Read the rest of this entry »