Greetings readers! Since our brewery hustle kicked off we have been doing very well. (I’m talking Amazon level growth…) Let’s get right into the expansion and how it fits with our previous operational goals.
We are going after this in two phases. First we are pushing into the Canadian market. It makes sense geographically before we conquer the world. In order to do that we are acquiring a brewery in Canada. Why you ask? Canadians source 84% of their consumed beer locally (industry.beercanada.com). Instead of competing with InBev and other bigger companies, we will set up shop locally and push our product from a Canadian office and slap a maple leaf on the bottle.
The bad news: Beer sales are down 1.1% over the last year (beer Canada). Per capita consumption as a whole is down 2.1% as of 2017. (This may be the only time sobriety is considered a bad thing…..)
The good news: British Columbia is still drinking! The beer market is still expand there so we will make our acquisition in Vancouver.
Thank you to Beer Canada for all the stats and graphs.
Both domestic sales and import sales are up in British Columbia. This is where the acquisition will take place. The first graph depicts the expansion of breweries locally meaning the market for domestic craft beers is a big business! We will buy a local successful brewery and steal (Uh, I mean acquire) their recipes and sell both their products and popular brews from our Alaska brewery.
The second growth phase is adding another product line. We will do this with clothing and accessories. We are selling our brand and people are going to wear it around.
2. Cost Savings
While we may have to pay a premium to purchase a local brewery, the most cost effective way to go international is to acquire a brewery in Canada and produce and sell from there. It will be much less to distribute locally (internationally) and will make the brews more popular with those patriotic Canadians.
At this point we will have to outsource distribution. Given the large size of our corporation, we can no longer source this internally. It will cost less to pay the net fee than to do the vertical integration necessary to maintain this service.
The newly minted All Star Team:
With the new plants and international distribution we built an economy of scale. It takes significantly more personnel to operate an international brewery than a local spot.