Six Pack of Brewing Success – Part 1 The Product

Let’s start with what every beer geek will tell you is the most important thing, in fact they will tell you it is the only important thing – the product – what’s inside the bottle, can, growler or keg.  This is also the reason that most brewers get into the business, they love beer, they love creating beer recipes, pushing the boundaries and producing great, high quality product.
But what should you brew? If you are a brewer chances are you have beer tastebuds that are developed far beyond the general public, including most beer geeks, but you are running a business here and you can’t sell your beer to yourself so you have to consider what the public want.
And here starts one of the biggest fights in the beer geek community. God forbid you are a craft brewery that is ‘playing it safe’ by producing what there is demand for. All beer geeks think everyone should produce beers that are targeted absolutely directly at them, even though we can’t actually agree on what beers we like.
I’ve discussed Thunder Road before; they are a Melbourne brewery putting out perfectly acceptable, if a little boring (to beer geeks) pale beers. The strange thing is there is an unnatural level of hatred for them amongst the beer geek community.
Thunder Road are unashamedly going after the mainstream beer drinker. Phillip Withers the owner of Thunder Road told the SMH:
”It’s important to respect the 98 per cent of beer drinkers who don’t drink craft beer, because they are the ones we need to convert,” Withers says.
”They deserve to have as close to what they enjoy already but better. We would love people to all be drinking IPAs but some are going to be scared off.”
It’s a simple enough philosophy; produce a better version of the style of product that the market is already drinking and it’s the exact model that a brewery like Thunder Road would need. If you don’t know anything about them, the description in this article sums it up nicely as a ‘money-is-no-object brewery’. I’m sure money is an object (rich people don’t get rich by being dumb) and they know that if you want to make serious money you need to produce mainstream styles.
Sure do them in a craft beer way with a focus on quality ingredients, but if you want to carve out significant market share you are going to have to go after the pale lager loving, beer garden market. 

The Moondog Boys in their makeshift brewhouse

At the other end of the spectrum is Moon Dog who I have also discussed on here a few times. Now these guys are absolutely the brewery that all beer wankers love to see. Three guys (unfortunately only two and a half beards between them, but we can forgive that), completely ramshackle, a do it yourself vibe and small scale. I assume they have low overheads (for the notoriously capital intensive brewing industry) and therefore they can take risks.

They produce risky beers; pumpkin, plums, coffee, pineapple, coconut, all sorts of things are in their beers They are playing at the ragged edge of where Australia’s beer tastes are and are heading. Some people will love the beer, probably just as many will hate it. It’s a niche within a niche and I’m not entirely convinced it’s actually big enough to sustain a brewery, but I could be, and often am, completely wrong.

To make this approach work you have to accept that you are only going after a small market and you have to treat them as special. It’s going to be a huge amount of one on one communication, talking to people at bars, on twitter and in blogs.

I would suggest you might need to be charging a premium for the product as well and you’d have good cause to given it’s unique and one assumes it’s limited. Of course with a higher price comes an expectation of higher quality, unfortunately quality control has been a little patchy at Moondog, but beer wankers are a forgiving lot (assuming we like you to start with) so they will be fine.  

Which approach is right? Well both, or none, or maybe one of them. I’ve discussed this article before, but let’s face it in the blog world no one reads old entries so I’m going to quote it again. There were some dudes in the US who did a correlation study between sales growth (and you should note it’s growth not volume) and ratebeer scores and found:
By analyzing hundreds of thousands of beer reviews, Clemons found that the brewers whose sales grew the most were not just those with high ratings, but those with the biggest gaps between their highest and lowest ratings.
“It is more important to have some customers who love you than a huge number of customers who merely like you,” the paper concludes — even if your beers are so intense that they turn off a lot of potential customers. “Good, solid, likable, average, middle-of-the-range new products that consumers neither love nor hate will not sell.”

So that suggests that raspberry-infused coffee stouts that half the beer wanker population love and half hate will produce sales growth. Having said all that the article goes on to speculate, when discussing the success of Three Floyds brewery:
But one factor trumps the others: “They picked styles that America truly loved and they made them extreme but not too extreme.”
It’s possible, Clemons notes, to make a beer so edgy that nobody likes it. The key is to be as different as possible without being just plain weird.
So maybe success actually lies somewhere between the two approaches. Produce styles that people like, or perhaps more importantly styles you think the market will grow to like.
We can see that the two biggest selling craft beers are Little Creatures and Fat Yak (both pale ales at around 30-35 IBUs) so perhaps the best approach would be to produce a more extreme version, say a 45 IBU pale ale and then grow them to a 60 IBU IPA and then to a 80 IBU Imperial IPA.
And this is the approach of EPIC brewery, which is one of the most popular craft breweries in New Zealand and increasingly pushing into the USA. Their entry level beer is the pale ale (45 IBUs), but also in the range is the Armageddon (60 IBU) and Hop Zombie (80 IBU). And for the ‘I did a weird fruit infused beer’ crowd they have the Portamarillo, which is made with tamarillos and the Fig and Coffee Stout.

So there are a few approaches that you can take, play it safe lagers all the way through to completely nutbag weird shit. You can probably find a market for both, even if they are different sizes, you just need to understand the market you are making the beer for. 
     
Possibly interesting epilogue. GABS is approaching later this week. 60 craft beers, some relatively safe, some way out there. There is a ‘People’s Choice’ award where the punters vote for their favourite beer. The questions, what will win? A ‘safe’ choice like Thunder Road’s Richmond Pilsener, or maybe Bridge Road Imperial Lager or something way out there like Moondog’s Mr Mistofflees (clearly the brewers are big musicals about pets fans) which is a passionfruit and mango wild ale or The Monk Brewery’s Sweet Potato Porter.  My guess is it will be a ‘safe’ beer.

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4 thoughts on “Six Pack of Brewing Success – Part 1 The Product

  1. Pingback: The Six Pack of brewing success – Part 3 – Trial | Tipples Beer

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