El Pinguino wrote:
More risk = more reward, we all get that, I just wouldn't call it a "dangerous game". It's a low-profit game that you have to get into because you love it and understand it.
Huh, I thought contract brewers got everything done for free and only had to pay for what they sold.
We're way off topic here, so I won't corrupt this thread any more. Contract brewing is an exciting topic though!
yeah. contract breweries are doing it solely for the love and passion. lolz.
don't know about you, but i don't have $50000 to lose over a poorly plotted business venture. Spearhead was a bigger player with lots of employees, so i'd assume that their potential for a large debt was very, very real. we're not talking about $1 million for buying a kit and a leasehold, but i'd be quite confident to say that someone like spearhead has well over $100 000 invested in their operations.
a contract brewery has so little potential to make money that it's a foolish business venture to get into in the first place. that's probably why Evil Twin and Mikkeller sell their products at a premium. Lost Craft and Ace Hill are not in that price range and are spending $$ on (likely) buying lines and swag and other crap. Evil Twin bikini is $0.70 more a can and half the alcohol. easy math that, i feel, some parties just aren't grasping and will go the way of the dodo. or of the Spearhead.