Why we think there's still space for us
No one doubts the rise and continued uptake of craft beer. There has been an explosion of places in and around our area over just the last couple of years. Places like Wissahickon, Double Nickle, and Borough Brewhouse are all cool new locations to grab a cold one with friends. There are so many now, that there are 11 breweries within just a 10 mile radius of our location. If you widen that circle to ones within 30 minutes or 25 miles that number jumps dramatically to 91. The explosion has been crazy!
Craft beer market growth is starting to slow. It’s no longer accelerating at >12% year over year. With this many new places in the area can we possibly think that opening up a new brewery is a good idea?
Yes we do. While the overall craft market is slowing, microbreweries, a small subset, do not show the same signs. Places producing <500 BBLs/year (like we plan on being) grew 27% last year.
The main reason for this growth is consumer’s desire for variety. As people seek the newest, greatest, most unique beer, they tend to move from larger breweries (with limited capacity for one-off brews) to smaller establishments, whose size allows them to easily pivot styles.
Additionally, the microbrewery community is super supportive of each other. At this small size, we all recognize that consumers want variety, and are working with each other to provide it. This is one of the reasons we are planning collaboration beers with fellow microbreweries. It provides both of us with something new to share.