Competitive Market Of Nano Brewery

1765 Words8 Pages
Competitive Market Although Nano-Brewery should not hold allusions of taking over the macro-brewer scene anytime soon, they are doing well in comparison to other nano-brewers nationwide. Currently, Nano-Brewery is services five accounts where they provide beer on tap, which by industry standards is positive. John Holl, the editor and chief of All about Beer Magazine remarks about nano-breweries, “heck, if they can get on tap in at least one place in town, that’s success.” The reports of not being able to keep up with production is also a positive sign that the beer is being well-received in the community. Nano-brewery also reports that its highest volume of sales come from its bottle and growler sales direct from the brewery and this…show more content…
Although craft brewers use a number of unique additives to their batches to get the right flavor, such as fruits, nuts and honey, the major necessity is hops. Although hops can be sourced globally, the market demand is steeply rising will inevitably drive up the cost. Larger macro-brewers will have both the financial leverage and the economies of scale to get the best of what is around, leaving microbrewers and nano-brewers to source elsewhere. There is also the consideration of price strategy in the market. Craft beer is known for its higher cost of production and higher purchase price to consumers, but as the trends in micro- and nano-breweries expands the question remains as to if they will take on a similar pricing model to that of the macro-brewers in the United States. Currently, the pricing trends amongst macro-brewers are almost solely based on a single manufacturer, as noted by Robert Uihlein, Chairman of the Schlitz Brewery, ‘a price increase is needed, but it will take Anheuser-Busch to do it,’ (Rojas, p.3). This trend has only slightly manifested itself on the smaller market and realistically has just adhered to a standard model of pricing thus far, with little fluctuation based on demand. As an example, there is a number of craft breweries who have become infamous for releasing their most coveted brews on a limited basis, but price
Get Access