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Craft Brewery


               industry that all breweries sell their product for   make a decent income at a good spread. If you look
               “too cheap,” and part of the job of a brewery is to   at the National Brewers Association’s list of the top
               educate consumers on what good beer costs. In        50 craft breweries in the U.S., it becomes apparent
               fact, some brewers go as far as saying that if you   that volume is king. Very few of these breweries
               can’t afford their beer, you probably can’t afford   make significant profits, but they are still thriving
               craft beer.                                          because the spread between their production costs
                                                                    and retail prices is greater than most other beer
                 There are many factors to consider when deciding   manufacturers.
               on a price for your product, not the least of which
               is competing in your market. Price too high and                          Branding
               no one will buy your beer, price too low and you
               may lose money or have to discount the beer very       Branding is an essential aspect of running a brew-
               frequently to move it off the shelf — another chal-  ery that includes everything from your logo and
               lenge altogether.                                    beer labels to where you sell your beer. It also
                                                                    involves how you market, advertise and promote
                 In addition to that, you have to take into account   yourself. An excellent way to think about it is the
               other factors such as overheads costs (keg size,     total image or “face” of your business. Breweries
               pour size). You should also understand the differ-   also have to think about consistency in their brand-
               ence between pricing off-premise and on-premise      ing across multiple locations.
               bottles and cans. At Untappd, there’s a beer pricing
               guide that is worth a read for future reference.       There is a lot of money and effort involved in
                                                                    making sure that all your beers, logos, labels, and
                 Regardless of how you price your beer, it is a     promotional materials are consistent from location
               fact that the craft brewing industry is a volume     to location. If you own more than one brewery, it
               or “spread” business. Very few breweries make        is almost impossible to create a consistent image
               money, but those that sell beer to enough people     between them.













































               10    December - January  2022       BEVERAGE MASTER





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