Beer monopoly podcast No. 9: Direct to consumer
It was a remarkable admission by James Watt, one of the founders of Scottish craft brewer BrewDog: He said that in March 2020 he broke down in tears when the severity of covid-19 became clear: BrewDog had lost almost 70 percent of its revenue overnight, almost all of its 100 bars were closed, most of its export markets stopped ordering. Pivoting its website to prominently feature its online shop proved a way out. BrewDog ended a potentially ruinous year profitably. So what can craft brewers learn from BrewDog’s e-commerce model?
Beer monopoly podcast No. 8: Digitalisation
The latest deceptive buzzword in the brewing industry is digitalisation. Like all terms it can mean a whole lot of different things. Take the Drizly app. It is a piece of technology which was bought by Uber in February 2021, whereas Flaschenpost (message in a bottle), which was acquired by Germany’s major brewer Radeberger in December 2020, is fundamentally an old-economy type of beverage retailer that uses an app where people can order stuff. The world of shopping is undergoing an upheaval. For consumers the benefits are obvious: they will gain greater convenience from being able to shop either physically or virtually. But for retailers and producers the challenges are immense.
Beer monopoly podcast No. 7: Hard seltzers
Both Coke and Heineken announced they will be launching their hard seltzer brands in Europe this year. Tere are several barriers that any hard seltzer brand will need to overcome in Europe, starting with the fact that “seltzer” is not a word used here. Will consumers over here really fall for the hype of low calories in an alcoholic beverage? Besides, the powers that be in both Germany and the EU are already taking a long hard look at hard seltzers because it could be argued that they are akin to alcopops. Those drinks were taxed nearly out of existence in 2004. If this fate were to befall hard seltzers too, their time in the limelight in Europe could be brief.
Beer monopoly podcast No. 6: Organic beers
For all the hype and hope over sustainability, the market share of organic beers remains small. Is it because consumers do not want to pay more for them? Or is it because other purchasing criteria like flavour, style and support for the community are still more important?
Beer monopoly podcast No. 5: Narratives for the brewing industry
Narratives help us make sense of the world and ourselves. Take globalisation. It was presented to us as an inevitable process, forging global champions in its wake. In the brewing industry, the narrative of “biggest is best” was countered by the craft brewers’ own narrative, which was modelled on the biblical story of David and Goliath. These narratives have reached closure. Do we still need a compelling new narrative to maintain a conversation around beer?
Beer monopoly podcast No. 4: The legacy of the AB-InBev-SABMiller transaction: MegaBrew five years on
Dubbed MegaBrew, the merger between AB-InBev and SABMiller in 2016 combined the world’s two largest brewers. In the following years, AB-InBev unwound SABMiller little by little. But its megadebt has proven a headache. Was the whole thing really worth it?
Beer monopoly podcast No. 3: Dealmaking in the brewing industry
Through dealmaking the Big Brewers could bulk up more quickly than through organic growth. That is how they become global. But not all deals lived up to expectations. Constellation Brands’ purchase – and subsequent sale – of US craft brewer Ballast Point can serve as a warning.
Beer monopoly podcast No. 2: Is Brewing beer an essential industry?
Brauwelt International is hosting a new series of podcasts, which will feature the award-winning authors Ina Verstl and Ernst Faltermeier, whose book The Beer Monopoly was published by Hans Carl in 2016. In their short podcasts the two will provide sound reasoning on economic and strategic issues affecting the brewing industry. You can listen here free of charge.