Sku’d

National Beer Wholesalers Association’s 2015 Distributor Productivity Report
National Beer Wholesalers Association’s 2015 Distributor Productivity Report

Two statistical tidbits from a recent post from Jason Notte about the proliferation of SKU’s (aka stock keeping units)

“Meanwhile, it’s starting to tax the people who have to bring that beer to retailers. Independent beer distributors were carrying an average of just 262 SKUs in 2007, according to the National Beer Wholesalers Association’s 2015 Distributor Productivity Report. Just last year, those same distributors were dealing with an average of 981, with a reported range between 600 to more than 1,600. They’re also dealing with an average of 35 breweries, compared with just nine two decades ago.”

Imagine that you are selling beer, or delivering beer or hell, being the data entry specialist at a distributor now? You are juggling a lot of balls now. You now should really know 35 breweries and their offerings where before you had to only keep 9 straight. There are multiple variants of multiple beers. And if you are in Los Angeles, you need to know the day-to-day traffic patterns too just to physically get a beer on a shelf to be bought. Then (if you are on the ball), you have to police retailers and get old product off the shelves in a timely manner.) The spreadsheets and customized computer programs would be mind boggling to the average beer drinking person.

“The burden of that increased SKU count isn’t just on distributors and stores. While the beer industry’s SKU count has increased 244% since 2008, total U.S. beer output has actually dropped 3.3% during that same span — from 213.3 million barrels to 206.3 million. While it’s true that craft beer’s production has nearly tripled in that time — from 8.4 million barrels to 22.2 million in 2014 — and its brewery count has soared from 1,500 to more than 4,000, there’s a catch.”

This stat is fun. Couple layers to peel. Back before craft (BC), it was a large amount of beer and little SKU numbers. Now that beer amount is down but there are now more breweries in the US than ever before. But nesting in that number is that the growth category of craft is well dominated by the major players of the Top20 list. So bigbig has fallen backwards but littlebig has grown. The intimation being that littlebig may well be on the way to being bigbig and how will they behave towards the little?

Left in LA

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Looks like Los Angeles is on the Left Hand Brewing distribution list. Starting this spring the Craft Beer Guild of Los Angeles will be bringing in beers from the Colorado brewery into SoCal. From San Diego to Santa Barbara.

Whether or not they blitz the area like Bell’s did in February is an open question but it seems the amount of choices for the L.A. beer consumer is growing.

It will be interesting to see if their famed Nitro Milk Stout takes off here.

Ska in SoCal

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Ska Brewing Company is the latest Colorado brewery to announce that they are coming to SoCal.  But this is big because it is the “first new market in five years.”

Why now? Because they have added “a new high-speed canning line that has relieved capacity issues for the Southern Colorado brewery.’

And what beers will be coming to our Golden state? The flagship Modus Hoperandi India Pale Ale and Ska’s popular canned seasonal beers; Mexican Logger, Euphoria, and the Seasonal Stout Series.

I am looking forward to seeing their beers on our shelves.

Coming to Cali from Texas

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There is going to be a new addition to the beer shelves in California.  Adelbert’s Brewery, a Belgian-style brewery based in Austin Texas, is expanding here.

California will be getting the new beer The Traveler, as well as Black Rhino, Philosophizer, Flyin’ Monks, Dancin’ Monks, Tripel B, Scratchin’ Hippo and Naked Nun.

They join Jester King who have been in California in limited amounts for a few years now.

 

 

The Firkin for August 2013

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There are many items that the craft beer world has on its to-do list.

My rant today is about distribution. Or as sometimes happens, kegs sitting around.

Some breweries self-distribute which takes time. On the plus side, you are dealing with only your beers. So “you” are educating your customers on your beers. “You” know can store your beers in the best conditions. “You” know how fresh your beers are.” But that it is a lot of time that can be used in many other areas of brewing life. Some of which may be more important.

The seemingly natural progression seems to be distribute yourself until you are big enough to “sign” with a distributor. You invariably then sign with more and more distributors as your territory grows.

Finding that right someone who loves your beer as much as you do, seems to be the harder task. And this is the link of the chain that needs to strengthened, especially as more and more breweries start reaching that tipping point between driving the truck and working the hand cart yourself and having someone else do it. More distributors of different sizes and in different towns will be needed.

And when I say size, I am talking about a distributor to brewery ratio that isn’t skewed to the point where a business is repping such a big binder of beers that they can’t possibly sell all of them with the same vigor and they can’t Quality Control the living conditions for kegs and bottles (or cans).

Both of those issues will impede the growth of craft beer than anything Miller/Coors/Budweiser does primarily because it is hidden from sight. Say a new customer tries Brewery A’s beer at their taproom and really likes their Belgian Pale Ale. Next week they see it on tap but it tastes different. Next week, they don’t see the beer at all. A few weeks later they see a bottle of it and it tastes different there too. Mind you, it may not taste bad in the subsequent tastings but it has lost that extra zing.

How does a customer determine (if they even decide to) why the beer is less than it was. Different batch? Recipe being tweaked? Most people don’t know beans about how a craft beer gets to a tap at a bar. Even less know who the distributor for each brewery is. I can tell you who a few local breweries work with but past a handful I don’t and I write a blog about craft beer.

In my example, the cause of intermittent availability could be caused by how much was brewed but it could be that because it is part of a huge book of beers that it is getting missed and therefore not out to people who would put it on tap or stock it on shelves. It could taste different because there was a glut of it and some didn’t get put into a cold box in a timely manner (or at all). That dry hopped IPA may have waited at a distributor for a while before making it to a bar who then waited for a tap to become free to put it on.

Now the brewery shouldn’t have to track kegs. That is why they got a distributor! Bars shouldn’t have to be in charge of quality control. They are busy on the front lines educating customers. What can change is competition.

The more distributors there are, the better chance that your favorite brewery can find one that has the employee and cold box capacity to carefully handle their precious beer. It may be that a smaller house has better staff training and can move the product faster because of it. A bigger company may be able to spread the wealth to a wider clientele. Either way, the fear of losing clients will cause the underperforming distributors to up their game or pay the price.

The goal is to have the beer presented in its best light for each and every customer.

The Goddess of Beer comes to SoCal

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Ninkasi Brewing has been showing up in Los Angeles with their Tricerahops Double IPA.  I first spotted them at the Blue Palms 5th Anniversary party and then on tap lists for the Food GPS Beer Blast.   The craft brewery based in Eugene (Home of lightning yellow football uniforms) signed agreements with independent wholesalers here as well as Orange County and and San Diego County. Flagship and limited release offerings are on the way in 22 oz. bottles and kegs.

 

Footprint

Just when I think the craft beer world can’t come up with any more new ideas, someone comes along with another great one.

Odell’s of Colorado has used an ingredient from each of the states it sells in to create Footprint. Puts all the states and ingredients on the label too. And the sub-name is region-ale. Brilliant.

Gimme MORE!

Our craft beer distribution is an imperfect but workable system. But from time to time, I wish I could lay my hands on some beers that other folks take for granted. I was reminded of this when Great Divide Brewing started bringing their beers to Los Angeles last year. I was glad to see Hibernation and Claymore in the stores but it got me to thinking about other breweries that I would like to see here in SoCal.

So here is this months list:
Boulevard Brewing – They get to Oregon! How about some Double Wide IPA love here.

Nebraska Brewing – Again, seen them in Oregon. Move a bit south.

50/50 Brewing – I wish they could hop a lift on the Firestone-Walker supply train.

The Firkin for April 2010

Crazy beer laws that affect what is brewed and where it is brewed are cringe inducing headaches. But if you truly want a whopper of a migraine then the world of craft beer distribution is for you. The only comparable source of hope squelching frustration is the political fillibuster.

Ponder this: Kansas, Nevada, Louisiana, Texas and Oklahoma are required to sell their beer through a distributor.

Or chew on this: Brewpubs in Texas can only sell their beer in house. A distributor or retailer can’t even touch it.

Lastly: Shipping companies will ship wine any time of day but now seemed scared by someone or something from shipping your favorite brew.

I am not a big fan of a large federal government. What I am a fan of is uniform and level playing fields. Wanna know why you can get Deschutes and Rogue in California but not Surly? Oregon has enlightened (in comparison) distribution laws. Minnesota? Not so much.

Here is my modest proposal:
1. Beer and wine allowed to be shipped anywhere in the country. There is no reason why anybody should not be allowed to buy a beer from any state in the US.
2. Each state can tax it as they see fit. Let’s do the math. No beer shipped X state tax = ZERO. Any beer shipped X state tax = revenue.
3. Breweries should be allowed to choose whatever form of distribution they want. If they want to be small and distribute to a few local stores, they should be allowed to. If they want to Stone it up to national levels they should be given that choice.

Right now distributors and states are getting in the way. The goal is not political viability or creating monolithic distributorships. The goal is for the brewer to get the beer into the hands of the drinker.
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