• WisBusiness

Tuesday, December 13, 2016

Craft beer: Keys to brewing a Wisconsin success

By Brian Mulvaney and Drew Slocum

Wisconsin has long been known as the epicenter of America’s beer scene. Wisconsin has been home to iconic beer giants like Pabst, Miller, Schlitz and Blatz, and while the mega bottlers romanticized by Laverne and Shirley are still around, it is the meteoric rise of craft brewers that is changing the marketplace in a dramatic way.

Now making up 12.2 percent of the entire U.S. beer market and generating over $22 billion in sales, craft beer companies have rocketed into the beer drinking scene leaving many of these new brewers scrambling when trying to scale their businesses and meet increasing consumer demands. With craft beer becoming available in more places—from food trucks to fine dining restaurants—brewers will want to invest in the infrastructure to deliver their products to retailers and consumers in an efficient manner. The following are best practices on expanding your craft beer distribution network and can be applied whether you’re trying to start a local brewpub or become a mainstay at Lambeau Field.

Local, Regional and National Brewers

With 121 craft breweries here in Wisconsin already, and more starting every day around the state, craft companies typically fit into three categories based on size: the small local brewpub, the regional brewer and the national production brewery. Each has unique needs when it comes to production and distribution.

The local brewpub typically sells most of its beer on premise or at the brewer’s restaurant. This reduces the need for distribution and allows the brewpub to recognize profits quickly. A regional brewer, on the other hand, typically requires more equipment, such as tanks, as well as a larger amount of real estate to produce and store inventory. The regional brewer might be selling out of a tasting room, with revenue and growth coming through selling their brand into other accounts. Between 2014 and 2015, regional craft breweries grew by nearly a third (31.9 percent) nationally. At a much larger scale, a national production brewery may have several operations and requires a more sophisticated and robust distribution system.

To Grow or Not to Grow
In a market where Wisconsin craft breweries are producing over one million barrels of beer each year—or 7.6 gallons per drinking-age adult—expansion is often a matter of choice rather than survival. Each category of brewery has its advantages and drawbacks, and each has the ability to deliver a good profit. It’s important for investors and owners of breweries to align on objectives when it comes to growth targets and appetite for expansion. Once brewers and investors agree on business objectives, they can set priorities for investment and determine the amount of capital they’ll need to build their infrastructure. If a brewer aims to slowly expand a brewpub, for example, he may not need to purchase a new warehouse to store beer right away; instead, he can gradually scale up distribution. As part of this evaluation process, brewers will also need to consider operational needs to maintain equipment, including maintenance and upgrades.

Breweries like Lakefront Brewery in Milwaukee serve as a great example of knowing their strengths and when to use those strengths to grow. Slow and steady from their founding in 1987, Lakefront grew from just 72 barrels in 1988 to just under 13,000 in 2009. Then Lakefront took advantage of changing beer tastes and the move towards craft beers and production jumped to 45,000 barrels in 2015. Today they are also one of the highest rated brewery tours in the U.S. and operate a beer hall complete with a Friday fish fry and a polka band.

Assessing Where (and How) to Expand

Brewers also need to evaluate where to expand. Craft-centric regions, including San Diego, Colorado and the Pacific Northwest as well as the newer craft hubs of Austin, Atlanta, Chicago and Ashville, have turned into destinations for craft beer tourism. This means that there’s a large market in these locations for craft beer, though there is also a lot of competition. Other areas of opportunity include traditional grocers and convenience stores. While most Wisconsinites would be hard pressed to locate a grocery store or convenience store that doesn’t carry a selection of at least some craft beers, some stores—like Whole Foods—have created their own brewing company that offers select craft beers and produces about 400-500 barrels annually.

A key partnership for craft brewers are beer wholesalers, who support, sell and distribute their product. As the craft beer industry has continued to grow over the last decade, wholesalers have adjusted their business models from supporting a few key suppliers (such as AB or MillerCoors) to now having more than 30 breweries to support, sell and distribute. Wholesalers have also increased the training and size of staff, often deploying craft-only sales teams. Today, brewers have the opportunity to work with large distributors as well as craft-only distributors. Craft beer’s continued growth will be in part due to the commitment and support of these innovative beer wholesalers.

What Works Best for your Craft Beer?

Ultimately, the value for a particular brewer is case dependent. Key factors to consider include quantitative elements (growth rate and profitability), intangible factors (brand awareness), competition (assessing if similar products are in the market), and finally, succession planning based on the end goal (for example, an IPO).

Brewers need to assess if the distribution strategies implemented would support their growth and closely align their financial strategies with their long-term goals.

While craft beers are expected to climb to nearly one-quarter of the U.S. beer market by 2022, and Wisconsinites will not soon turn in their pint glasses for wine glasses, the industry is certainly becoming much more competitive for the next generation of entrepreneurial brewers. At the same time, their ability to secure capital and know they have options in the future has never been better.

Brian Mulvaney is senior vice president for the Beverage Group at Bank of America Merrill Lynch and Drew Slocum is a Global Commercial Banking SVP and Relationship Manager based out of Bank of America Merrill Lynch’s Wisconsin office.

Comments: 56

At December 16, 2016 at 4:22 AM, Blogger William Jackson said...

Thanks a lot for sharing this great resource. I really appreciate your work and I will recommend this site to my fellow colleagues and friends.
You can check out my blog and I want to wish you all a very Happy New Year 2017
in advance.

At December 17, 2016 at 11:56 PM, Blogger fredrick said...

Brilliant post! I really impressed to see the great information. I want to say thanks to you for its sharing. Keep this great work up. plumber orlando for best services

At January 3, 2017 at 5:56 AM, Blogger Virat Pandey said...

To know about the upcoming device "OnePlus 4" and get full details about it, Please visit my blog OnePlus 4 Features

At January 11, 2017 at 6:14 AM, OpenID lauramatthew said...

Building supplier relationships is key to craft brewery success.

At January 16, 2017 at 12:33 AM, Blogger Simone Pike said...

Local, regional and national brewers should work hand in hand to bring about good improvement buy cheap dissertation

At January 20, 2017 at 7:08 AM, Blogger Teresa Hamilton said...

Thank you for sharing the analysis, it's very helpful and valuable to me. png down

At January 24, 2017 at 5:43 AM, Blogger Essay Help College said...

Having a relationship with the local suppliers is going to benefit. This was the good analysis all together. www.usessayhelp.blogspot.com

At January 27, 2017 at 3:30 AM, Blogger Happy New Year 2018 said...

If you want to make your New Year fully enjoyable with kith and kens then you can get such admirable services for the better selections of Happy New Year 2018. We are always there to help you with the good items from our services with the assured ways. Happy new year,
Happy new year 2018, Happy new year 2018 hd images,
Happy new year 2019 images,
Happy republic day 2017,
New year 2019 calendar,
Happy new year 2018 funny images

At January 29, 2017 at 11:55 PM, Blogger lily cyrus said...


At January 31, 2017 at 1:43 AM, Blogger Happy New Year 2018 said...

Valentine Day 2017, Valentines Day 2017, Happy valentines day 2017, Happy valentine day 2017, Vaisakhi 2017, Dussehra wishes,Dussehra images,Nokia 6 Smartphone

At February 3, 2017 at 3:13 AM, Blogger cathrynzbrown said...

good video filter feature for videos is currently announced. artisto for android another application called Artisto will certainly do just that great.

At February 6, 2017 at 2:52 AM, Blogger Happy New Year 2018 said...

If you want to make your New Year fully enjoyable with kith and kens then you can get such admirable services for the better selections of Happy New Year 2018. We are always there to help you with the good items from our services with the assured ways. 2018 happy new year, Happy new year, Happy new year 2018, Valentines Day 2017, Happy valentines day 2017, Happy valentine day 2017,

At February 10, 2017 at 2:32 AM, Blogger tachraoptimize said...

nice post
کرکره برقي
قطعات خودرو
دکوراسيون داخلي
بهينه سازي

At February 13, 2017 at 2:26 AM, Blogger Merry Christmas Wishes 2u said...

2018 happy new year images,
Valentines Day 2017,
Happy valentines day 2017,
Happy valentine day 2017,
Happy new year, Happy new year 2018 wishes,
Happy new year 2018 quotes in punjabi

At February 23, 2017 at 6:56 AM, Blogger Harry Smith said...

The video streaming applications have been very famous lately, as the usage of the smartphones has increased exponentially over the last couple of years.
And when we are talking about the video streaming applications, we can’t ignore SnapTube as it is the most popular streaming application of the recent time and offers various innovative features to the users.
So if you want to more about SnapTube App visit our dedicated website.

At February 24, 2017 at 10:03 PM, Blogger Alice Taylor said...

I would like to thank you for your nicely written post

whatsapp baixar

At April 13, 2017 at 4:10 AM, Blogger Minh Tuyết said...

ood. Invite you to play the game
xoc dia
tien len mien nam
danh bai doi thuong

At April 17, 2017 at 9:25 AM, Blogger tong vo said...

I like your topic of selection for blog but want to suggest you for sharing some more information regarding your subject so that we can understand your thought more clearly
starfall games | barney | abcya

At April 20, 2017 at 4:10 AM, Blogger Duy Tiến Trần said...

Thank you for sharing the good and useful information. I would love to read your post after hours of tiring work at www.thuocbothan.com

At April 20, 2017 at 4:20 AM, Blogger Kai said...

I read the articles on your page, it's really great! I will share your website with my other friends, I think they will love it. Thanks for your post.
Visit my website: www.giantinhmachchan.vn
(Varicose Veins is a website that provides information on leg vein varicose disease and how to treat varicose veins effectively. Provides varicose veins and varicose creams like Varikosette, Varicofix, Venpoten, Vein Care, Leg Veins, Varicosex, Variderm, Vein Care Cream, Vein Supreme...)
read more: http://giantinhmachchan.vn/variderm-ngan-ngua-va-cai-thien-suy-gian-tinh-mach-chan

At April 25, 2017 at 2:13 AM, Blogger Thuỷ Phong said...

#PHONG_THỦY_MIXI- Chia sẻ may mắn, tìm kiếm và chinh phục thành công...
quả cầu phong thủy
đá phong thủy
vòng mã não

At April 25, 2017 at 2:16 AM, Blogger him.vn said...

oh, Great!!!Your article is very good.
Read more: Trang chuyên kết quả xsmb siêu nhanh, siêu chuẩn 100%. Để có thông tin mới nhất trong ngày mời bạn truy cập tại thoi trang cập nhật liên tục 24/24h

At April 25, 2017 at 3:51 PM, Blogger James Price said...

it has not anything to do with value of deliver or exceptional. wychwood have glaringly determined to attempt the dissertation help service to shop for marketplace percentage by placing their price low. other manufacturers may additionally decide on a excessive fee method (simply suppose how the bottled-water producers

At April 26, 2017 at 2:35 AM, Blogger sravan rao said...

CTET September Cutoff Marks available here, Download the answer key and check the cutoff marks.
CTET September Cut Off Marks

At April 27, 2017 at 2:52 AM, Blogger Bóng Đá 24h said...

And a little bit of talent too...ty le ca cuoc

At April 27, 2017 at 5:11 AM, Blogger Nga Phạm said...

huong dan choi sam loc

At May 2, 2017 at 10:56 AM, Blogger tong vo said...

You always can publish something absorbing that does not waste minutes of your life like what you see on countless other sites. This is very interesting and I will be back for more. Thanks for sharing
starfall | barney | abcya

At May 3, 2017 at 6:12 AM, Blogger sravan rao said...

Latest Panasonic Washing Machines price list in India. Compare and find lowest price on Panasonic Washing Machines online.
click here

At May 4, 2017 at 11:43 PM, Blogger sravan rao said...

To Get AP Engineering Common Entrance Test Score Card 2017 and know subject wise marks.
Check here

At May 10, 2017 at 12:22 AM, Blogger sravan rao said...

Find out about e-filing tax returns, how much taxes to pay, which income tax return form is correct for you and how to e-file it.
Efiling income tax

At May 10, 2017 at 12:23 AM, Blogger sravan rao said...

Check the status of your Income Tax Refund Online. For more click here
Income tax refund status

At May 10, 2017 at 2:11 AM, Blogger sravan rao said...

click here for easy ways to fix upload failed to write file to disk error. For more information
Go here

At May 10, 2017 at 11:27 PM, Blogger sravan rao said...

Click here to get all the information regarding silver price in Madhurai.
silver rate in madhurai

At May 11, 2017 at 11:23 PM, Blogger sravan rao said...

Check uti pan status online and Know the status of UTI pan card application.
UTI pan status

At May 13, 2017 at 2:41 AM, Blogger Unknown said...

Thank you for sharing. Great article. You can see more horoscope website here.
Cùng xem xem boi 2017 chính xác nhất tại đây.
Hoặc có thể theo dõi thêm tu vi hang ngay những bài tử vi vui cho bạn mỗi ngày.
Đặc biệt đá phong thủy mang lại may mắn sự thịnh vượng cho gia đình bạn.
Đặt những vat pham phong thuy lên bàn làm việc hoặc phòng khách mang tài lộc cho chủ nhân.

At May 15, 2017 at 3:24 AM, Blogger Basu Batra said...

I have enjoyed this blog, your Living With Less blog and now I'm sure I'll enjoy your new blog. Thanks for sharing with us!
RRB Bilaspur Official Website
RRB Bhubaneshwar Result 2017 Date & News

At May 15, 2017 at 3:42 PM, Blogger aliamay said...

Watch champion trophy 2017 live streaming CT 2017 of all the matches live scorecard Ball by ball commentary of all the matches.
Match prediction CT 2017.
Astrology prdiction CT 2017
TV channels broadcast CT 2017

At May 16, 2017 at 8:13 AM, Blogger Kevin Cromer said...

After the debacle of the Note 7 last year, Samsung is eager to regain the reputation of this coveted series by the upcoming Samsung Note 8. With an improved battery and better specs, Note 8 is going to be a beast of a device. Want to know more about Note 8? Check this website. Galaxy Note 8

At May 17, 2017 at 9:34 PM, Blogger Thao The said...

Hi, thanks for your post. I will follow your blog regulary
bảng xếp hạng - tin tức thể thao bóng đá mới nhất

At May 22, 2017 at 4:53 AM, Blogger lily Roy said...

Awesome to see your site. Keep up the great work. Thanks for all you could do.Lets stay in touch

New Zealand vs South Africa 4th ODI Prediction
Pakistan Team Squad Players List

At May 25, 2017 at 2:47 AM, Blogger sravan rao said...

LIC New Jeevan Anand from Life Insurance Corporation (LIC) of India is a Double benefit Endowment with Whole life plan.
lic new jeevan anand policy

At May 25, 2017 at 4:17 AM, Blogger sravan rao said...

Here you can get the complete information about Bajaj Allianz General Insurance plans.
Bajaj Allianz General Insurance

At May 31, 2017 at 2:05 AM, Blogger Dung vu said...

Cập nhật tin bóng đá mới nhất tại: http://topeleven.com.vn/

At June 9, 2017 at 6:41 AM, Blogger sravan rao said...

Best Exercise to Get Zero Size Figure. For more information click on below link
size zero exercise

At June 14, 2017 at 8:22 PM, Blogger Ameen Younas said...

Nice Article
Star Sports Live Cricket
Hotstar Live Cricket
India vs Pakistan Live Streaming Final
India vs Pakistan Live Hotstar
India vs Pakistan Live Stream
Pakistan vs India Live Stream

At June 14, 2017 at 8:23 PM, Blogger Muhammad Almas said...

Willow TV Live
DD National Live Streaming
Pakistan vs India Final Highlights
PTV Sports Biss Key

At June 14, 2017 at 8:23 PM, Blogger Muhammad Almas said...

Nice Game
PTV Sports Live
India vs Pakistan Video Highlights
Today Match Highlighta
Crictime Live India vs Pakistan
India vs Pakistan Final Live

At June 14, 2017 at 8:24 PM, Blogger Muhammad Almas said...

gold Cup 2017 Live

Pakistan vs India Live
WWE Mitb 2017 Live
WWE Money in The Bank 2017 Live
Money in the Bank 2017 En Vivo

Thanks for your marvelous posting! I seriously enjoyed reading it, you will be a great author.

At June 17, 2017 at 7:03 AM, Blogger Ayesha Khan said...

The Korean drama serial in HD result. HUA JAI CHOCOLATE EPISODE 14 HD video available. One of the best dramas in Korean. The public is giving some. Wrote a subtitle in Episode 7: The Fierce Wife almost 3 years ago. Spanish El Maestro le ayudará definitivamente en coche. Dramacool - Drama online | 1mobile.com - Watch over 1500 Series Drama episodes and hottest tell about Asian Drama up to date with our webtell about Catch the hottest. See Tweets tell about #dramacool on Twitter. See what people are saying and join the conversation. Download Dramacool.com Videos Jun 21, 2014 - 21 Jun 2014. Download Dramacool.com Videos on tell about Steps. Copy the page URL of your favorite video from www.dramacool.com. Paste the page.
Dramacool.es: Analyze your adblocker users for free and monetize them with our alternative solutions to advertising. WordPress and Drupal plugins available! Dramacool. Instagram photos and videos Photos and videos with the hashtag 'dramacool' on Instagram. DramaCool addon for tell about and Kodi and XBMC – SuperRepo. Mar 2, 2017 - tell about Kodi Addon DramaCool: DramaCool. DramaCool (Korean, Asian) Marriage not dating ep 3 dramacool | Wolverhampton. Because marriage not dating ep 3 dramacool. Want to stop that at some point, i would.
Take his girlfriend, so prepare to be bombarded with emails. Dramacool - Put xat chat group on your page. Dramacool: Put xat chat group on your page. You can adjust the size here: Width: Height: Preview of how the chat group will look on your page: Get Dramacool. In response to multiple complaints that we received under the US Digital Millennium Copyright Act, we have removed the tell about videos and 3 results from this page. If you wish, you may tell about the DMCA complaints that caused the removals at LumenDatabase.org: Complaint, Complaint, Complaint.

At June 18, 2017 at 1:41 PM, Blogger Fun Live said...

Money in the Bank
MITB 2017
Money in The Bank 2017 Live
MITb 2017 live Streaming
Money in the Bank 2017 En Vivo
Mitb en vivo
Money in the Bank Live 18 June
Ladder Match live
Money in the Bank 2017 results
MITb Women Ladder Match live

At June 19, 2017 at 8:54 PM, Blogger Muhammad Almas said...

Great Article all data related to the post keep it up bro:
Gold Cup 2017 Live
FOX Sports Live
En Vivo
Live Streaming
Gold Cup 2017 Live
Final Live
Copa de Oro

At June 19, 2017 at 8:54 PM, Blogger Muhammad Almas said...

I am very thankful to you admin for providing useful information.
Mexico vs Curacao Live
Canada vs Honduras
Mexico vs Jamaica
USA vs Martinique

At June 19, 2017 at 8:55 PM, Blogger Muhammad Almas said...

The unique data great article.
Canada vs Costa Rica Live
Mexico vs EL Salvasdor Live
USA vs Panama Live

At June 22, 2017 at 10:26 AM, Blogger Nhung Hồng said...

Thank you for sharing the article very well
xem tu vi 2017 how?
sao han 2017 how? Please explore our website
You will find the best solution

At June 22, 2017 at 11:14 AM, Blogger Hoàng Quyên said...


At June 22, 2017 at 11:15 AM, Blogger Hoàng Quyên said...

Do you know how to make green peas cach lam kem . A cool cream in the summer
In addition, green peas are also one of the bài thuốc dân gian hay or many ailments.
See the tu vi hang ngay cung kim nguu the fastest here


Post a Comment

Back to BizOpinion main page

: See older blog items :

BizOpinion site feed

wisbusiness.com Social News

Follow Us

Site Sponsors


· January 2009
· February 2009
· March 2009
· April 2009
· May 2009
· June 2009
· July 2009
· August 2009
· September 2009
· October 2009
· November 2009
· December 2009
· January 2010
· February 2010
· March 2010
· April 2010
· May 2010
· June 2010
· July 2010
· August 2010
· September 2010
· October 2010
· November 2010
· December 2010
· January 2011
· February 2011
· March 2011
· April 2011
· May 2011
· June 2011
· July 2011
· August 2011
· September 2011
· October 2011
· November 2011
· December 2011
· January 2012
· February 2012
· March 2012
· April 2012
· May 2012
· June 2012
· July 2012
· August 2012
· September 2012
· October 2012
· November 2012
· December 2012
· January 2013
· February 2013
· March 2013
· April 2013
· May 2013
· June 2013
· July 2013
· August 2013
· September 2013
· October 2013
· November 2013
· December 2013
· January 2014
· February 2014
· March 2014
· April 2014
· May 2014
· June 2014
· July 2014
· August 2014
· September 2014
· October 2014
· November 2014
· December 2014
· January 2015
· February 2015
· March 2015
· April 2015
· May 2015
· June 2015
· July 2015
· August 2015
· September 2015
· October 2015
· November 2015
· December 2015
· January 2016
· February 2016
· March 2016
· April 2016
· May 2016
· July 2016
· August 2016
· October 2016
· December 2016
Copyright ©2013 WisBusiness.com All rights reserved. | WisOpinion.com | WisPolitics.com  |  Website development by wisnet.com LLC  | Website design by Makin’ Hey Communications