Don’t expand for the sake of expansion

US state of Maine brewer Rob Tod told fellow Maine beer makers that there are “choppy waters ahead” for craft brewers.

Tod, founder of Allagash Brewing, was speaking at the recent New England Brew Summit, which was reported on by Brewbound. The information he gave could be applied just as easily to UK brewers.

“If you’re a regional brewer, you are not growing double-digits. These days, you’re lucky to eke out a point or two of growth,” Tod said. “And I think it’s going to get tough for everyone else. I don’t think there’s going to be much slack in this industry for anyone.”

To navigate the headwinds, Tod offered five points of advice: focus on safety first; emphasize quality; choose markets thoughtfully; be mindful of how growth is achieved; and get involved with guilds and trade associations.

In 2005 Allagash was dying in sales, moving only 5,000 barrels a year. The solution decided on was to open in as many states as possible – 26 along with Washington DC. This proved to be a big mistake and today, after consaladating to a much smaller market – 15 states plus several large cities –  the brewery will be  producing 100,000 barrels this year.

“…I see a lot of breweries these days having success in their backyard, which is great, but they want to bring that success two, three, four states away,” Tod said. “I would just say be careful if you’re doing that. Make sure if you’re doing that you’re really supporting and understanding those markets, doing planning meetings with distributors, making sure your beer’s being rotated, making sure it’s fresh on the shelf.”

For the entire story, go here.