Brewbound Session Delineates Brands, Risks and Growth

One company that has been adjusting to the new popularity of craft is Sierra Nevada, which is pushing to open the convenience store channel as a way to grow what is currently the country’s second-largest craft brewer. Steve Jannuzzo, National Accounts Manager of Convenience Stores for Sierra Nevada Brewing said his company has realized the potential of craft beer in convenience stores, and he shared his strategies in finding the right shelves in the hopes that his fellow brewers could help the channel to expand the space it sets aside for the category.

“They’re building the Taj Mahal of convenience stores right now,” he said. “It’s perfect for our consumers.”

Jannuzzo said one of his tactics includes identifying wealthier, beer-drinking regions and filling nearby convenience stores with Sierra Nevada beers. For example, he noted that the average home in Virginia sells for $256,000. He then targets regions of Virginia containing houses that sell above the average price.

To increase craft beers in convenience stores, Jannuzzo suggested aligning the product with the retailer, understanding the convenience store consumer and knowing where to play.

Contrary to popular belief, he said that for the convenience store consumer, the lowest price isn’t integral to sales.

“They don’t care about the best price in town, they just want a fair price,” he said.

Offering another kind of perspective, Brian Meece, CEO of RocketHub.com, explored the potential to dovetail brewers’ need for startup cash with craft demand via crowdfunding.

Crowdfunding garners interest in an idea or new product from a dedicated fan base and raises capital in exchange for products or giveaways. As part of the federal JOBS (Jumpstart Our Business Startups) Act, signed in April, companies will soon be able to offer private equity in exchange for capital.

Meece argued that a great story with true intentions makes for an easier sell to potential supporters of a crowdfunding operation.

“When you have a clear ‘why,’ it makes the entire endeavor much easier,” he said.

He added that appealing to a wide audience can increase the effects of crowdfunding.

“Social dynamics are a big part of crowdfunding,” he said. “Nobody wants to be the first person dancing on the dance floor. It’s true in middle school. It’s true in crowdfunding.”