B.C. Beer Blog

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

Posts Tagged ‘Jan Zeschky

The Coming BC Craft Beer Correction

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IMG_20150720_205116With the number of craft breweries in BC expected to reach at least 130 by the end of 2016, competition is growing to the point where I expect we’ll see an increasing number of business failures. That’s not because there’s a lack of room for growth. BC has a population and GDP similar to Oregon, yet they have double the number of breweries we have. It’s because there’s a shrinking margin of error, especially in outrageously expensive Vancouver.

Growth of the BC craft beer market alone hasn’t floated all boats. (Remember Plan B, DIX, Taylor’s Crossing, and Surlie?) Yet, that’s what many of the startups seem to be counting on without a much deeper consideration of to whom and how they will sell their beer. In fact, there are breweries that don’t even have a working marketing plan (not the same as a promotion plan), never mind a marketing budget (not the same as ad hoc spending). We’ll see how much longer they’ll last on passion after the next 30 breweries open their doors.

Thanks to Beer Me BC, we have a better idea of whom the typical BC craft beer drinker is and their consumption habits. According to the most recent self-selecting survey, they are predominantly males between the ages of 27 and 42 living in the Lower Mainland and Greater Victoria. They drink, in ranking order of preference, India pale ale, stout, pale ale, sour ale, or saison from a bomber 3-5 days per week, mostly at home. Their beer is chosen foremost for its style, then by brewery and reputation.

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The Business of Craft Beer

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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 »