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Draft Accounts @ Adjacent Bars

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  • Draft Accounts @ Adjacent Bars

    Hypothetical situation: Historic main street location in a suburban town of roughly 20,000 people. Small brewery with tap room. Four or five other bars/restaurants on the same street in a 4 block stretch.

    Do you sell beer only from the tap room and not pursue any draft accounts at the adjacent bars/restaurants? Do you try to get draft accounts in all of the other adjacent bars/restaurants? Do you go for one or two? Are these adjacent bars/restaurants your competition or partners? Looking for advice from people with experience in a similar situation.

  • #2
    I would think definitely competition for the Tap Room! I would choose the ONE adjacent bar with the largest gross beer sales and turn over in clientèle, hopefully the furthest from your tap room, too.

    Good Luck!

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    • #3
      Originally posted by frazeejf
      Do you sell beer only from the tap room and not pursue any draft accounts at the adjacent bars/restaurants? Do you try to get draft accounts in all of the other adjacent bars/restaurants? Do you go for one or two? Are these adjacent bars/restaurants your competition or partners? Looking for advice from people with experience in a similar situation.
      Howdy Frazeejf,
      I could see how neighboring bars/restaurants could be viewed as competition BUT if they are willing to pour your beers in their establishments, then they are YOUR customers. A keg sold is a keg sold. I learned (many times it seems) that this is a volume game. I'd love to sell my beers for what I, emotionally, feel they are worth. However, the market rules all. My advice is this: if you can sell your products to an account, regardless of how close they are to you, SELL IT TO THEM!

      my 1.45 cents (market price)

      Prost!
      Dave
      Glacier Brewing Company
      406-883-2595
      info@glacierbrewing.com

      "who said what now?"

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      • #4
        Normally I agree with Dave's assessment of a lot of things, but in this case, with such a small market, I would not sell them my beer. It's YOUR USP (Unique Selling Proposition) - the reason why people visit YOU. Your margin on a pint pays the bills, not a keg sold at wholesale.

        You don't have to see them as competition, though. It's usually the combination of many bars and restaurants in a city which make "going out" for food or drinks interesting. You all create a "scene" together. Alone, you are nothing (figuratively). Embrace the neighbors, but keep your brew.

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        • #5
          Just a thought, you might consider brewing a specialty beer for those accounts. Or, perhaps sell them your Pale Ale or IPA, Black IPA, or Cream Ale (examples only)? Keep your flagship unique to the Tap Room along with your regular beers and seasonals.

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          • #6
            Are you a brewer or a bartender?

            Let me get this straight; a bar wants your beer and is willing to buy it, serve it, clean glasses, wash the toilets, pay the lights, toss out the drunks, and you don't want to sell beer to them? For me, this is a no-brainer. Best case scenario is that the other bars sell so much beer that you have to shut down the tap room so you can spend your time as a brewer. Really, what do you want out of your investment? A bar or a brewery?
            Phillip Kelm--Palau Brewing Company Manager--

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            • #7
              Originally posted by gitchegumee
              Let me get this straight; a bar wants your beer and is willing to buy it, serve it, clean glasses, wash the toilets, pay the lights, toss out the drunks, and you don't want to sell beer to them? For me, this is a no-brainer. Best case scenario is that the other bars sell so much beer that you have to shut down the tap room so you can spend your time as a brewer. Really, what do you want out of your investment? A bar or a brewery?
              I concur. We sell to all the locally bars and restaurants in very close proximity to our location. When our Taproom closes, our guests can continue to enjoy our product in very short walking distance.
              Cheers!
              David R. Pierce

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              • #8
                I'm doing this right now.
                The bar next door was owned by the brewpub and we sold 70% of the beer there. The owner sold it, But i still have 6 of 8 taps there and selling even more. I've gotten another good account in this small (7000 ppl.) town and worked up to 4 taps there, plus 2 out of town accounts.
                Obviously its better to sell a pint at the bar for 90% profit than in a keg for 20%. But if we relied on pub sales only we would be out of business. Instead im shopping for bigger fermentors so I can keep up with demand.
                In the end your customers know where the beer came from, even if they drink it at anouther bar.
                Brewmaster, Minocqua Brewing Company
                tbriggs@minocquabrewingcompany.com
                "Your results may vary"

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                • #9
                  Something that has yet to be mentioned is the marketing that comes from being on tap somewhere that is not you pub. Just because someone is drinking at a place near you doesn't mean they come into your place. Selling to accounts acts as a buffer to increase production with a positive cost margin and gets more attention to your product while still selling your product. I would not sell much of your special release stuff to the stone throw account that way when you want to gain a higher profit margin from your high gravity, big hop, yada yada brews you can call the locals to your place and sell direct. There is no reason not to have them pouring part of your staple line up. Marketing and distribution should always work in a radiating format for proper market saturation and a strong core following to help with future growth. But this is just my opinion based on my experience over the years.


                  *Disclaimer* may not be worth 2 cents.

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                  • #10
                    Consider your capacity. If you have built a brewery, why not get more out of your assets and run more beer thru your system? You may want to have a conversation w/ them about price point so there are no surprises either way, but if they are a Thai Restaurant, and you're putting burgers on your plates, you may have unique customer bases.

                    I'm kinda hungry.

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                    • #11
                      If you're in a small town with a relatively small number of bars, I'd think one goal would be for your beer to be in every bar in town.

                      Yes, there is some "competition" with your pub sales - but there remains a certain draw to people drinking at the brewery (and have brewery only releases for an added draw) and it's not like everyone is going to drink at your pub every day.

                      I would sell to everyone who wants a keg and not think twice.
                      Scott Metzger
                      Freetail Brewing Co.
                      San Antonio, TX

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                      • #12
                        My thoughts on the subject is that you should sell to the other bars but maybe limit it to you flagship beer and possibly one other so there is still a draw to your pub. We all know that the best profits come from the taps in house. Another thought, it is better to make ally then an enemy especially in a smaller community.

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