Tough Topic: Value

Posted by in Tough Topics on January 17, 2011 4:20 pm / no comments

There are many heads in a production facility.  You not only have a brewer, but you also have accountants, marketers, CEOs and a host of other titles.  Larger organizations like Brooklyn Brewery has more heads and smaller places like Metropolitan has a couple people wearing five hats a piece.  A brewery, no matter how larger cannot forget the consumer needs to see value in your beer.  I like Brooklyn’s Black Chocolate Stout.  Last year I did not buy any as I perceived it to be too pricey.  This year I saw a 4-pack for $6.99.  At seven bucks I saw value.  In fact, I wondered why they did not package it in a 6-pack for $11, although 4-packs are a sort of marketing gimmick.  Likewise, Metropolitan is retailing their beer for about $10 a 6-pack.  As a consumer we can walk into a store and see this is worth it.  Both of these are decent values for what you get.  Metropolitan is right in line with many other craft brewers, and Brooklyn priced theirs at an incredible price.

On the other hand, a lot of breweries have gotten caught up in charging higher prices.  They argue hop shortages and supplier cost issues.  The list goes on and on, but it results in a talented brewer making a good product that no one is buying because it just isn’t worth it.  The people wearing all the other hats have been so focused on the money the lost their craft values.I would like to ask the brewers and all the people out there to take a look at the operation.  Are you doing what you can to provide value?  If the answer is no or if your revenues are declining maybe you need to go stand in a mirror for awhile.

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