Also taking an analytical approach to the industry, Townsend Ziebold, managing partner of First Beverage Group, crunched numbers and acknowledged that craft beer’s growth has created an industry that is attracting investors from several pools, including private equity, family offices, strategic investors and the angel investment community.
“I’m not here to say that it’s a good time to sell, but it’s a good time to sell,” Ziebold said.
He added that there was a chance that some brewers would likely sell in years to come, as strategics are eager to buy into the market, but that even if several transactions helped to mature the investment market, demand still exceeds supply for craft beer, putting brewers in a good position to weather the maturation of their business.
Another place demand exceeds supply is with craft distribution, according to a panel of three distributors, Steve Zulanas, VP of Sales & Marketing for Allied Beverages Inc., Thomas Haas, VP of Sales for Matagrano Inc., and Jace Milstead, Craft Brand Manager for Ace Beverage Co. During a discussion in which the central theme seemed to focus on the distributors’ steadily increasing need for more craft beer, Zulanas made their dilemma clear: “We’re running to try to catch up to the consumer demand,” he said.
Even in a town like San Diego, where it seems like every neighborhood produces a bespoke brewer, distributors said they were willing to find space for new varieties as consumers continue to lose interest in the products from giant brewing companies like MillerCoors and Anheuser-Busch InBev.
“We’re seeing a craft beer bar open every single day,” Milstead said. “Our logistics will find a way.”
But brands need to be willing to offer customers what they want, Haas argued, predicting that brands stuck in their way will likely find their demise in short time. Adaptability is essential with the market’s ever-changing nature.
“Most markets are unique,” he said. “The ones that are able to adjust can succeed.”