I think we’ve all echoed that the local taproom is taking the place of the local pub. The volume is getting spread out across more outlets. RINGLER: There’s a lot more folks coming into the market, but yet the volume’s pretty flat. I see our numbers trending towards the drier side, which is good.
Cider is relatively new to the American craft drinking culture and to a lot of the consumers. SIETSEMA: I think the cider consumer is actually getting more educated, and they want to know what else is out there. If we could, we’d push every pint we could across the bar, because that’s where the money’s at. It’s difficult for me to answer that question, because it’s just a totally different ballgame.īUITER: A lot of new alcohol manufacturers are shifting away from either a split business model of 50 percent of distribution and 50 percent taproom in the startup phase to 100 percent taproom. It only takes 300 people to buy literally everything I make in a month. I have a teeny, tiny, infinitesimally small segment of the craft beer drinkers. Until we see some real economic downturn that really is the sea that separates all the diamonds out here from everything else, you’re going to have a consumer that’s just going to assume continuously everything new is good.ĮRMATINGER: I’m in the position where a very small amount of people buy all the beer I make, and they’re just super crazy about the sour beer. The average consumer thinks they’re being educated more, and I think the average brewer thinks they’re helping, but I believe it’s actually a backwards slide. LOOMAN: I think the average consumer is actually becoming more confused and less educated. As competition goes up, I think we’re finally at a position in the industry where there’s a little more supply than there is demand so prices might end up coming down a little bit for the first time, or at least stop going up. In many ways, it’s a more challenging business environment because it’s so competitive, but on the other hand, we have this enormous group of drinkers that we didn’t have 30 years ago, or 20 years ago or five years ago. HALL: It’s a lot different than it was 30 years ago. Here are some highlights of the discussion:įrom a 30,000-foot level, what’s your take on the state of the craft beverage industry? Greg Van Overloop, the beer, wine and spirits category manager at SpartanNash Co., a Byron Center-based grocery retailer.Andy Sietsema, owner of Ada-based Sietsema Cider LLC.David Ringler, owner of Cedar Springs Brewing Co.Erik May, owner of Byron Center-based Pilot Malt House LLC, who hosted the discussion in his production space.Nick Looman, co-owner of Newaygo Brewing Co.
and former brewmaster at Goose Island Beer Co.
Adam Bruski, senior counsel who heads the craft beverage group at Warner Norcross & Judd LLP, the law firm that sponsored the roundtable.Laura Bell, CEO of Comstock-based Bell’s Brewery Inc., which also operates Upper Hand Brewery in Escanaba.to a roundtable discussion MiBiz convened featuring executives from craft beverage producers, distributors, retailers and suppliers. Those tensions spilled over from presentations at the Craft Brewers Conference last month in Washington, D.C. Other divisions have emerged over labeling standards, quality issues and pricing pressures, not to mention threats from larger competitors outside the craft sector. At the same time, the regional breweries are finding their profits squeezed from large conglomerates entering the craft sector and as more drinkers opt to “drink local.” The small neighborhood breweries increasingly have less in common with their large regional counterparts. W ith more than 5,300 craft brewers already on the market, and many more scheduled to open in the near future, the craft brewing industry has started to mature.Īlong with that process, factions have begun to emerge, even in an industry known for its camaraderie and collegiality.
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