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Growler Economics
  • Theakston July 11, 2013 - 1:21 pm #79655 Reply

    the same thing is happening with "craft beer" in general these days.  People are paying exorbitant prices for "craft beer" when, because of the lack of expensive advertising costs, the "craft beer" could be sold at the same prices as your everyday Bud and Miller and still generate the same contribution margins.

    Not true John. Craft beer is more expensive because they use quality ingredients and brew on a smaller scale. They don’t use corn, rice or other cheaper adjuncts as a substitute for malt for example and they tend to use a lot of hops.

    They also often end up tossing whole batches because they don’t have the same controls as the industrial beer makers.

    courthound July 11, 2013 - 2:31 pm #79689 Reply

    @BPMBA – a Korean chicken restaurant is going into the new Equity apartment building that is going to offer growler service. ArlNOW made a mention of it in the Morning Notes a couple of months ago.

    CourtLady July 11, 2013 - 3:53 pm #79730 Reply

    Grateful Red is having a Growler Power Hour tonight.  Their featured beer is only 9.99 for a 64 oz!  It’s Holy Sheet Uncharted Waters.  I am not a beer drinker so I have no idea if it is worth it, but thought you would be interested!

    Native1 July 11, 2013 - 5:02 pm #79774 Reply

    Yes growler prices have gone through the roof here. I just got back from Bend Oregon. They have growler filling stations with 30 to 50 choices. The gas station a block away had 30 options ranging in price from $9-$12 mostly. And some of the breweries charged as little as $ 7 for a refill.

     

    Deadite July 11, 2013 - 5:02 pm #79776 Reply

    “"craft beer" could be sold at the same prices as your everyday Bud and Miller and still generate the same contribution margins.”

     

     

    That is the most absurd statement I’ve heard in a long, long time. I think you need to google “economies of scale”.

    John Fontain July 12, 2013 - 3:07 pm #79947 Reply

    Theakston and Deadite – I don’t dispute that so-called “craft beers” use, on average, slightly more expensive ingredients than your Bud’s and Miller’s.  And I don’t dispute that there are tremendous economies of scale that result from large production runs.  My point was that advertising costs comprise a significant portion of the fully-burdened cost of your Bud’s and Miller’s.  For the most part, these costs don’t exist for the so-called “craft brews” (many of which, incidentally, are actually brewed either by large brewers or in large production runs).  The benefits from lower advertising costs don’t fully offset the higher cost of ingredients and lack of production efficiencies, but it actually comes a heck of a lot closer than most lay people would expect (the “craft brewers” don’t want you to know this).

    Venn Diagram July 12, 2013 - 3:16 pm #79950 Reply

    John – it would be awesome if we could get growlers filled at Walmart. Cheaper, and based on the comments here – you and I wouldn’t have to wait in line (since nobody else will admit to going there) and they wouldn’t run out. That’s a win-win in my book – heck, I’d even tip the Walmart growler-filler.

    novasteve July 12, 2013 - 3:21 pm #79954 Reply

    I’m curious, has anyone here, since you apparently use growlers, even done the buy the bottle of win and take the rest home? You are supposed to be allowed to do it.

    John Fontain July 12, 2013 - 3:33 pm #79965 Reply

    Venn Diagram – good points.  A “Walmart Micro Brew” would be pretty funny in an ironic, hipster kind of way, too.  Maybe even cooler than PBR.

    “you and I wouldn't have to wait in line (since nobody else will admit to going there)”

    Interesting point.  In previous discussions about a Walmart being built in Shirlington, 95% of posters said they wouldn’t shop at Walmart because they hate it, but at the exact same time they were arguing against the Walmart because of the traffic that would result from the large crowds.

    Venn Diagram July 12, 2013 - 3:33 pm #79966 Reply

    Steve – yep, done it plenty of times at restaurants in Virginia - but I can’t say where off the top of my head. I always ask before ordering a bottle just to make sure they can do it. Some just put the cork back in most of the way, some will put it in a plastic bag and suck the air out. If they say no, then I’ll either just order a single glass or wait until I get home (which is usually the case since the wines by the glass are not always worthwhile).

    BPMBA July 15, 2013 - 11:04 am #80064 Reply

    Thanks, @courthound!  I’d missed that. Sounds like an … interesting combination!

     

    ballstoncmyk July 15, 2013 - 3:22 pm #80139 Reply

    @NovaSteve: i’ve taken home an opened bottle of wine several times from Pupatella.

    novasteve July 15, 2013 - 3:31 pm #80141 Reply

    Out of curiousity, what are the rules on “open” alcohol containers in cars if you do? I’ve heard police consider it to be an open intox even if you have the cap (or in this case, cork) in it. must you keep it in the trunk and better not be a hatchback?

    Anonymous July 15, 2013 - 3:55 pm #80162 Reply

    “(the "craft brewers" don't want you to know this).”

    The craft brewers don’t care what you know, and their customers don’t care anyway.

    Anonymous July 15, 2013 - 3:57 pm #80166 Reply

    “In previous discussions about a Walmart being built in Shirlington, 95% of posters said they wouldn't shop at Walmart because they hate it, but at the exact same time they were arguing against the Walmart because of the traffic that would result from the large crowds.”

    So?

    You realize that 95% of the posters on an ARLnow thread about Wal-Mart don’t represent a very large proportion of its universe of potential shoppers, right?

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