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Sayre Piotrkowski's avatar

This piece has received some thoughtful responses on my other feeds and I want to share a couple of them, along with my responses, with those of you following here...

From Stuart Canon, a member of Sacramento Beer Enthusiasts...

"I think it seems like there two kinds of stagnation you are talking about: market, and cultural/maybe creative stagnation. Market is one thing and alcohol sales are down across the board from what I understand so it's not just beer. I come from working in wine and ive always thought that an issue with beer culture is the obsession with the next new thing and always chasing something different. In wine, you have houses that have been around hundreds of years and no one expects them to make a wine that we've never heard of. North Coast Brewing has been making really good beers and those beers are still good, but beer drinkers will leave behind their favorites for whatever is the next thing. I use north coast as an example because i dont think of them as a very experimental brewery and they mostly have the same group of beers they have had for a long time. It's unreasonable to expect there to always be something new, in my opinion. I'm not sure what that means for how breweries compete with one another but certainly jumping the shark isn't working now that many sharks have been jumped. I think beer is just grown to be in the position a lot of other alcohol is in where people drink their brand of whiskey and people know the big names and off the road names down in Paso Robles wine. Sure people are putting peanut butter in whiskey now but largely you know Heaven Hill has been putting out Evan Williams since the 50s and Chateau Lafite Rothschilde has been around since 1855 and Bayerische Staatsbrauerei Weihenstephan is supposedly the oldest brewery in the world and they still have been making a relatively stable portfolio of classic German beer. Maybe I'm one of the assholes that beer wants to keep out but I think this reckoning has always been coming if you build your culture around new new new. I mean even Apple seems less exciting and they are constantly removing features from their phone. Maybe that's the next wave- the unbeer. Beer without a headphone jack. The milkshake comes separately from the sour."

My response...

"I hope my piece conveyed that "shark-jumping" isn’t the only way to create novelty and reignite customer interest.

Take the side-pull faucet, for example. It’s traditionally used for Pilsners—one of the most conventional, well-established beer styles. Yet a "Slow Pour Pils" can draw lines out the door, proving that even a subtle shift in presentation can feel fresh and exciting.

And while we might quibble over Scrimshaw’s quality, you're right to highlight the high brewhouse standards of most North Coast beers. But they’ve grown stale in other ways. The industry has moved forward—particularly in packaging and freshness—and they’ve been slow to keep up.

I believe brands in this position have an opportunity. Refinement and consumer education can pave the way for renewed enthusiasm. Make a big bet! If not a new beer style, then a rebrand. If not a rebrand, then a new format. Something. Anything. Because standing still is the surest way to fade into the background."

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Sayre Piotrkowski's avatar

This piece has received some thoughtful responses on my other feeds and I want to share a couple of them, along with my responses, with those of you following here...

From Jack Alexander of Burning Barrel Brewing & Spirits...

"Consumer tastes continue to evolve, and the introduction of seltzers, RTDs, other categories show that that there's still interest in alcoholic beverages, and the beer market has exploded to include so many different styles, I find it still very interesting and compelling. I think the future is still very bright for the brewery industry, but the bar has been raised.

It seems to me that there are three major categories of consumption: tasting room, restaurant, and retail (selling in stores). With costs having exploded after Covid, a brewery — I think — had to pick what was going to be a realm they would compete in. It takes a lot of money to compete and stand out in any one area.

The expectation of the tasting room experience is higher than it used to be, as more places opened and began competing for the beer-drinking-experience. This is a luxury. It used to be that a place could open in a spartan industrial space, and people would crowd in. While that can still work for a bit, I think people are looking for a place to hang out. The look, the music, whether you have TVs, places for kids (or places free of kids), etc., all work out to create your consumer experience. You need to have something available for any type of consumer — a style that almost anyone could enjoy. That means a lot of taps, and a lot of beer to manage.

I think the in-person beer market is just competing more for the disposable income than it used to, and people are more interested in the overall experience than ever. If you can get by with the majority of your business driven by a direct-to-consumer (on-site or to-go) this is the most profitable, but the least scalable.

I think the restaurant space is still about the beer. If you have great beer, and can get it out into the market people will order it. They don’t care what your tasting room is like. They may not even know where your brewery is, but if they’ve had the beer and know it’s good, they’ll order it. But then, the restaurant model is at the mercy of the restaurants. So many places closed during & after Covid. Lots of places closed owing breweries money, and even getting kegs back was an adventure.

The retail space is where the most competition is, IMO. That’s where you are up against RTDs, hard seltzers, and high-quality regional breweries. Margins are low, how the beer is treated is often impossible to control, so your brand is at the whim of the retailer. If you have economies of scale to make money in retail, more power to you. Outside of places that specialize in craft beer, we don’t sell to retail."

My response...

"Generally I don't disagree with anything you've written here. Get enough beers in me and I might start arguing that playing with seltzers and RTDs might be conspiring in our own demise long-term. I am still working that one out.

Also, given my experiences at HenHouse, I have much to say about "how the beer is treated is often impossible to control," but that is probably another article."

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