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Craft Beer

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Noelle Bailey

on 30 April 2014

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Transcript of Craft Beer

Fueling Popularity
The number of breweries in the US was
as of June 2012.

According to the Brewers Association that number increased to
as of June 2013.
Restaurant/Retail Market
Offers house crafted beer as a supplement to their menu.
What is Craft Beer
Brewpub and Microbreweries
Generally sell only to the consumer not to the wholesalers, but due to popularity that is beginning to change.
The Craft Market
Corporate-owned craft-style beer
New to Ohio!!!
AKA. MICROBREW BEER is a fully flavored, artisan-style beer made by US brewers. (less than 25% owned by non-craft mega brewers)
Must be small, independent, & traditional.
Produce less than 6M barrels per year
Variety of ingredients (hops)
Styles (IPAs, Pilsners, Belgians)

Craft Beer

Not all craft breweries are locally and regionally owned and operated.

Anheuser-Busch InBev (Green Valley), MillerCoors (Tenth & Blake), and Boston Beer
are brewing craft style beers. Recognize any?

Shock Top, Goose Island, Green Velley Brewing Co.
ZieganBock, Blue Moon, Leinenkugel's, Batch 19, Killian's Irish Red

During the economic downturn craft beer has kept an upward trajectory during the slow market recovery.

This is fascinating because craft beer has stabilized the beer market single handily since its decline in 2008.
Total US sales and forecast for
the craft beer market
Salty Dog
Anchor Steam
Rock Bottom
Target market
21-36 year olds are the largest segment of individuals who consume craft beer.
In order to increase consumption of craft beer,
education is key. 45% of survey participants
agreed they would try new styles if they knew
more about the them.
Dayton Craft Beer Market

Toxic Brew Company
Warped Wing
Fifth Street BrewPub
The Dayton Beer Company
Eudora Brewing Company
Fifth Street BrewPub

Second Brew Pub Co-op in the US

Members purchased $100 shares

Community Driven

Dayton Pints average $5

Dayton Growlers $14

US Pints $3-$10

Is the Dayton Market Saturated?

Rhonda Burnett
Grant Cooper
Noelle Bailey

Product Strategy
Sales are driven by taste, uniqueness, and ingredients
38% of consumers say craft beer has a superior taste
Clean/Crisp with a full-bodied flavor are key
INDIA PALE ALE is a top craft style
25% of craft beer drinkers prefer to purchase craft
beer where it was brewed
Craft Beer is more $$$

56% of consumers say premium
pricing can be a deterrent

April 2014, Anheuser-Busch/Inbev engaged in a price war by dropping keg prices of Goose Island and Shock Top from $110 to $56
Hosting tasting events can drive sales
In 2012, 8.6 billion in sales occurred at
liquor stores, supercenters, warehouse clubs
verses 1.7 billion at supermarkets.
Giant Eagle, Kroger, Schnuck's and Costo carry
craft beer.
of Costco's overall beer sales were from craft beer.
Dayton's own
Craft brewers relay on creativity, online forums, and word-of-mouth.
Educating the consumer is key for increasing sales.
Positioning is key
Community driven
Market with meaning
4 P's in action
Blue Moon -Miller/Coors/Blake Beer Co.


Dogfish Head-small independent brewer
**Blue Moon advertising budget was $8.6 million in 2011.

What is craft beer
Corporate vs. Craft
4 P's
Dayton Market
Full transcript