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Fermented Strategies - Craft Brewing Industry Newsletter - Issue #4

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As we reflect on year-end in the craft brewing industry, we are reminded that 2018 did not come witho
 
December 21 · Issue #4 · View online
Fermented Strategies - Craft Brewing Industry Newsletter
As we reflect on year-end in the craft brewing industry, we are reminded that 2018 did not come without challenges. Just this month there was the receivership of DME, which, for now, has caused a considerable amount of chaos in the industry. Breweries are now uncertain about expansion plans or even staying in business with the potential losses that stemmed from this event. Deschutes Brewery just laid off 7% of its workforce, which, among others, follows cuts at Lagunitas and New Belgium. Overall equity markets are in turmoil and other leading economic indicators are showing a potential downturn in the economy. However, there are still exciting things happening in craft beer. The industry at large is still growing, with much of that growth is happening in the microbrewery and brewpub sectors. The Brewers Association is expecting that another 1,000 breweries will open their doors in 2019, which will bring the overall total to over 8,000 breweries in the US.

So where does this leave your brewery? It might seem like the time to hunker down and wait out the storm. But when markets are maturing it makes sense to make some aggressive moves, particularly when others in the industry are not. Whether this is an expansion of footprint or capacity, it is important to make decisions with the long-term plan in mind. Understanding the economic impact in the short- term is important, however the short-term should not dictate your long-term thinking. Economic downturns and changes in the market are cyclical. You do not want to be caught flat-footed while your internal and external market competitors are executing their long-term plan and benefiting when the markets turn again.

Upcoming Events
Unfiltered 2019 - January 29, 2019 at Buckledown Brewing Unfiltered 2019 - January 29, 2019 at Buckledown Brewing
Strategy Guide
Four Pack Strategic Industry Guide | Lance CPA Group
Thoughts from Lance CPA Group
Thoughts From Our Friends
Industry Leaders Discuss Competition, Cannabis and Unity at Brewbound Live | Brewbound.com
Don't Let Me Down — Failure of Equipment Manufacturers Puts Breweries in Disarray — Good Beer Hunting
Brewers Association Celebrates the Year in Beer Brewers Association Celebrates the Year in Beer
At Lance CPA Group, we partner with craft brewery owners who embrace unconventional risk and strive for creativity. Those who lend themselves to change, remain transparent and without pretense are the breweries that thrive.

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