B.C. Beer Blog

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

Posts Tagged ‘industry

Why Grapes are Being Freed While Hops Remain Shackled

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by WanderingPaddy

Over the past month, BC wine consumers and the BC wine industry have had several reasons to pop champagne corks in celebration of changes to both federal and provincial laws which have benefited both groups. First Bill C-311, a Private Member’s Bill introduced into the House of Commons by Okanagan-Coquihalla MP, Dan Albas, prompted an amendment to the Importation of Intoxicating Liquors Act (IILA) of 1928. Federal law now allows wine, and wine only, to transported or shipped across provincial borders by consumers. Spirits and beer are still illegal to ship or transport across provincial boundaries, as they have been since the introduction of the IILA.

Next, the provincial Liberals got in on the act by allowing consumers to buy direct from Canadian wineries. As an added bonus, they do not have to pay the BC Liquor Distribution Branch’s (LDB) 123% mark-up! Even though the feds now allow cross-border wine shipments, it is the provincial governments that ultimately have control over what alcohol gets imported into their jurisdictions. So this move was critical to give Bill C-311 some meaning. Again, these allowances were made for wine only, leaving laws unchanged in regards to spirits and beer.

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SYWTOABP: Industry Research

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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.

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SYWTOABP 6.5: More on market research and cashflows

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Development site at Kingsway and Broadway, Vancouver BCThis isn’t the post I wanted to write or at least planned to write this week.  The plan called for another dull list of equipment you (I) need to price out, this time for a commercial brewing operation of a size suitable for our hypothetical brew pub.  The post I wanted to write was something in my mind that I’ve dubbed “A day in the life of a brew pub brewmaster”. To that end, I’ve been beating the cyber bushes for a brew pub brewmaster who is willing to talk about their job and duties. That post, whatever number it ends up being, will happen before the series draws to a close.  I’ve been putting off doing the list of brewing equipment until after my little chat with a working brew pub brewmaster, which made sense, but has meant publishing delays…

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