Live data from Hacker News

Anchor Brewing Company ends national distribution, kills Christmas Ale

sfgate.com

301–309 of 309 posts

Re: Anchor Brewing Company ends national distribution, kills Christmas Ale

#301

I just left a job at Deschutes Brewery. Craft Beer is in a real bad spot atm.

Can you elaborate?

Sure, I oversaw their data historian and was a production analyst for their manufacturing facility in Bend. It is perhaps the most technologically advanced brewery systems currently.

From a manufacturing standpoint that isn't saying much, but from a brewing standpoint it's saying quite a lot.

Quite plainly they are making a bet on bringing NA beverage production in house and they can't pay me because "fresh" market conditions are squeezing them (pun intended).

There are multiple factors that make it really difficult to be a craft beer manufacturer. Primary of which is the three tiered system on distribution, this has been a blight on the beer industry for decades and isn't new.

Other trends such as a decrease in consumption of beer overall in combination with a HIGHLY saturated market place will pretty much seal the deal for the majority of mid-tier breweries that DO NOT have a loyal following.

I never signed an NDA so if you want to know more about my job ask away.

Re: Anchor Brewing Company ends national distribution, kills Christmas Ale

#302

I just left a job at Deschutes Brewery. Craft Beer is in a real bad spot atm.

i really liked 2013 deschutes. i actually still think their older beers are good. mirror pond is still, imo, the quintessential pale ale. i miss chainbreaker. and the red chair was always a nice seasonal treat. i can't blame them for trying to chase trends, but my impression is their distribution was too large to be able to capitalize on anything groundbreaking.

>i really liked 2013 deschutes.

One of the large contributing factors to the rise in Deschutes during that time was due to their investment in technology because of their newly appointed Brewmaster "Brian Faivre" a computer science grad from UC Davis. While I never met him I saw the result of his and many others who championed consistency and quality via data collection about their production process. This dude was essentially scared away due to internal politics.

>but my impression is their distribution was too large to be able to capitalize on anything groundbreaking.

The distribution is all through large distributors Deschutes and every other "Largish" craft brewery has to sell their soul to the devil that is the "three tiered" system in order to not have to make investments in solo distribution. Given what I know about their production facility and the people there. It is completely geared to cash in on basically any beer trend that could exist. Their pilot plant is simply ridiculous, it's a fully automated 40 bbl split wort A/B testing powerhouse. The best beer you've never tasted has been made in that thing.

IMO Deschutes made many decisions that just ended up being a waste of money that severely crippled their cash position.

Lastly trends in the beer world are a flash in the pan at this point. I disregard Seltzers because it's a different process that doesn't directly involve wort production and therefore many craft breweries aren't set up to pivot to such a product.

One thing I attempted to stoke (not that this was at all my job) while working their is that marketing strategy should shift towards understanding that no consumer is loyal in the sense they always want to "try the new thing". This would have meant investments in better variety packing capabilities. If you didn't know variety packs are the highest velocity product, and my guess would be that any brewery that people think is good at all it's their highest velocity product as well. Time and time again I'd raise my hand and point to the metoric number for our variety packs (from a velocity stand point) and say "why can't we make investments that greatly bring down the cost and increase the production velocity for this product. Now you see brands like 10 barrel, Sierra Nevada basically doing just that.

Re: Anchor Brewing Company ends national distribution, kills Christmas Ale

#304

Earlier quoted context omitted.

It does. Not sure what that has to do with anything though.

have you reread your comment back to yourself this morning and seen the irony?

What, because I say other people are free to express themselves politically?

All I said dude was that I don't believe in it and that I think what they were doing is stupid.

Other people can do what they want, even if its pointless. Because pretty much everyone does shit (like boycott) more because it makes them feel good ("look at me! I'm stickin it to the man!"), not because it is effective.

I suppose if everyone measured their activities on effectiveness it might create a hole in the space-time continuum, so many idiotic jobs and actions would be eliminated.

Re: Anchor Brewing Company ends national distribution, kills Christmas Ale

#305
post #303

Can someone ELI5 me how selling beer only in California is more profitable than selling beer in California and also other places?

Licenses, certifications, shipping, marketing, local distributor management, etc. is all extra overhead when dealing out of state makes your beer cost more compared to selling it locally. And when selling outside of California accounts for 30% of sales it might not be worth the effort.

Re: Anchor Brewing Company ends national distribution, kills Christmas Ale

#306
post #67

Earlier quoted context omitted.

> The corporate overlords are doing what corporate overlords always do. Killing what doesn't make money? If this was profitable what exactly are the 'corporate overlords' achieving here?

I think craft beer fans would argue that their Christmas Ale is iconic and provides much of their respect as a brand and that discontinuing just pushes the brand further into irrelevancy. Pulling back to California makes sense of sales aren’t strong enough, but also killing off a beloved brand seems that it could hurt in the long run.

Whenever I see "Christmas Ale" I can't help but remember Denis Leary's standup bit about beer, particularly the part about Christmas beer[1].

1: https://youtu.be/YgBvdPH8TZw?t=75

Re: Anchor Brewing Company ends national distribution, kills Christmas Ale

#307

Earlier quoted context omitted.

I'm guilty of the same. I'm about halfway between Portland and Bend, which are both high on the list of breweries per capita, so I can try a huge variety of beers without ever needing to look outside the state. I try to get local beer whenever we travel, but I mostly find that it's just the same as the local stuff, it doesn't feel different.

Okay now I’m trying to guess where you live that you could say you’re halfway between Portland and Bend. Unless… do you drink a lot of Ice Axe?

[deleted]

Re: Anchor Brewing Company ends national distribution, kills Christmas Ale

#308

Earlier quoted context omitted.

I'm really confused at the general lack of knowledge about this topic on HN. Heineken is one of the worst beers made, and local beers, while mostly not great, are certainly better. Look at untappd for statistically significant ratings.

A fresh Heineken from the brewery is as good as a Pilsner Urquel of Budvar - very, very good. It’s not the same stuff you buy at any gas station.

> Pilsner Urquel

Another middling green-bottle beer. Better than Heineken easy, but typically still worse than your local brewer will make.

Re: Anchor Brewing Company ends national distribution, kills Christmas Ale

#309
post #80

Earlier quoted context omitted.

The founder of Boston Beer Company (brewers of Sam Adams) has talked about how beer drinkers now want to try one of everything and are endlessly moving from label to label, whereas in the past drinkers would settle on one brand and stick with it for years. This hurts the “small” (versus “micro”) brewers like Anchor because they’re viewed as “too corporate”.

> brewers like Anchor because they’re viewed as “too corporate”. They are owned by Sapporo now, so there's that.

Yes. And just like you’re implying, it has nothing to do with the beer quality itself (which might even be better now that they’re owned by Sapporo [1]) but some other criteria like “being cool”.

[1] Note that I said “might be better [quality]…” Without knowing the details of how Anchor beer is made specifically, corporate ownership can bring more resources and remove barriers, enabling “more, better” or it can exploit a trusted brand by using it to sell a lower quality product until consumers catch on. My bet would be that Sapporo is doing the former.

Post reply on HN