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Thread: Contract brewing pros and cons

  1. #1
    Join Date
    May 2007

    Contract brewing pros and cons

    I am starting my research on a unique oppty I am presented with. Without setting you up with the peripheral outlook, I will be brief and direct with my question.
    Is contract brewing a win-win venture ?
    For example, why would a brewery such as Gordon Biersch put so much time into brewing and private labeling beer for Trader Joes ?
    There is obviously an upside but what are the problems associated with this concept ?

    Thank you in advance.
    Jonpol J Anderson
    Craft Brew Specialist

  2. #2
    Join Date
    Jan 2004
    Stratord, Ontario, Canada
    excess capacity can be used without the pain in the ass of marketing/sales

  3. #3
    Join Date
    Oct 2002
    East Syracuse, NY
    Having contract brewed for several years now I can tell you that there are several pros and cons from my experience.

    -Very little start up compared to a brewery
    -Get the experience of the brewery your working with in the beginning. Very valuable for me.
    -Get a foot in the door possibly with thier dist. network

    -at the mercy of their production schedule.
    -dont have an actually brewery for customers to visits and "become attached to"
    - some customers look down upon contract brewing
    -VERY SMALL margin

    These are just a few that came to mind. You can email me specific questions if you want.

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