2014 American Homebrewers Association Industry Workshop Agenda - - PowerPoint PPT Presentation

2014

American Homebrewers Association Industry Workshop

Agenda

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9:00 Introduction 9:10 State of the Homebrew Industry 9:45 Break 10:00 Social Media Best Practices 11:00 Recruit & Retain New Soldiers in Your Homebrewing Army 12:00 Homebrew Expo & Social Club

Antitrust Guidelines for Meetings

We cannot discuss any of the following topics:

• Prices, pricing procedures, margins, what constitutes a fair profit

level, changes in or stabilization of prices, terms or conditions of sale.

• Pricing practices of any industry member.
• Forecasts of price increases or decreases.
• Specific credit terms, discounts, rebates, freight allowances, profits,

profit margins or costs, market shares, allocation of markets, any limitation on sales, sales territories or distribution practices.

• Selection, rejection, boycott, refusal to deal with, or termination of

any suppliers or customers.

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AHA Governing Committee Industry Subcommittee

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Chair: Jake Keeler, AHA GC Chair Reed Antis, Saratoga Zymurgist John Blichmann, Blichmann Engineering Juno Choi, BSG HandCraft Justin Crossley, AHA GC, The Brewing Network Michael Dawson, Wyeast Chris Farley, Northern Brewer Gary Glass, AHA Chris Graham, MoreBeer! Duke Geren, FH Steinbart Chris Opela, BrewMaster Steve Parr, AHA Larry Clouser, BrewCraft Brad Smith, BeerSmith Brian Wright, LD Carlson

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What is the Industry Sub-Committee?

Committee's function The Industry Subcommittee was formed during the National Homebrewers Conference of 2010. The committee’s primary goals are to foster better communication between the AHA and industry entities, as well as provide resources, assistance, and guidance to the AHA based on concerns brought forward by said members

• f the homebrewing industry.

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2013/2014 Activities

• 1. Expanded programming for the Industry Workshop (formally

called Retailers Roundtable ).

• 2. Review and develop questions for the annual industry

survey

• 3. Exploring the idea of creating an industry trade organization
• f some kind - perhaps through the AHA.

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2014 Industry Overview

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2014 AHA Homebrew Supply Shop Survey

408 shops—48% increase from 2013 Shops from 48 states participated (ND & SC)

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Revenue 2013 & 2012

All Shops

% ∆ Gross Revenue 2013 % ∆ Gross Revenue 2012* % ∆ Gross Revenue Q4 2013 All Shops 10.4% 26.2% 13.1% Not Primarily Homebrew 10.4% 5.6% 2.5% Primarily Homebrew 10.5% 28.7% 13.8% Homebrew-70% online 13.8% 21.9% 7.9% Homebrew-70% online; 5+ yrs 5.6% 21.9% 3.2% * 2012 figures are from last year’s survey

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Analysis of Gross Revenue

54% ≥ 10% growth in 2013 (57% in 2012) 34% ≥ 20% growth in 2013 (40% in 2012) 17% experienced a decline in 2013 (18% in 2012)

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Years in Business

• Average: 10 years
• Median: 5 years
• 37% open ≤ 3 years (43% in 2013 survey)
• 7% open ≤ 1 year (7% in 2013 survey)

Number of Shops In Area

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How has the number of home beer and wine retailers in your area changed over the last year?

3.0% 37.2% 59.8% 5.4% 36.8% 57.8% 2.4% 37.2% 60.4%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Decreased Stayed the Same Increased

2014 2013 2012

Customer Gender

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Percentage of Female Customers Average Response Year Beer Wine 2014 10.9% 25.7% 2013 11.1% 23.6% 2012 9.3% 24.1% 2011 11.7% 27.2%

% Of Purchases That Include Malt Extract

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64.0% 61.1% 55.1% 70.0% 65.0% 50.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2012 2013 2014 Average Median

Beginner Beer Equipment Kit Sales

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2014 2013 2012 Average 23.7% 23.1% 16.4% Median 15.0% 18.0% 10.00%

83.6% 7.8% 8.6% 33.0% 80.5% 8.7% 10.7% 29.0% 66.1% 20.3% 13.7% 16.7%

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

Increased Decreased Stayed same Increase > 20%

2014 2013 2012

Beginner Wine Equipment Kit Sales

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2014 2013 Average 21.4% 15.3% Median 10.0% 8.0% 68.5% 12.6% 18.9% 20.4% 69.1% 8.5% 22.4% 18.4%

0.0% 20.0% 40.0% 60.0% 80.0%

Increase Decreased Stayed same Increase > 20%

2014 2013

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Beginner Kit Sales Cont’d

Among the customers who buy beginner homebrew kits at your shop, please estimate what would be the most common age group

2.8% 41.8% 46.8% 7.1% 1.4% 0.0% 2.4% 32.9% 55.3% 8.2% 1.2% 0.0% 1.1% 33.9% 51.6% 11.0% 2.5% 0.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

<25 years old 25-29 30-39 40-49 50-59 60 or older

2014 2013 2012

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Beginner Kit Sales Cont’d

• Among the customers who buy beginner winemaking kits at your shop,

please estimate what would be the most common age group for:

2.2% 9.4% 36.2% 44.9% 7.2% 0.0% 0.6% 8.4% 34.3% 42.8% 12.0% 1.8% 1.8% 5.1% 39.0% 45.5% 7.9% 0.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

<25 years old 25-29 30-39 40-49 50-59 60 or older

2014 2013 2012

How Long Homebrewing

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Two-thirds of Homebrewers started in the last 8 years, with over half starting between 2009 and 2013 (when 10% to 17% started each year).

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Year Started Homebrewing: % Each Year

Total AHA-affiliated Unaffiliated

Started between 1985-2004: 30% Total 34% AHA-affiliated 22% Unaffiliated

Started between 2005-2013: 66% Total 62% AHA-affiliated 75% Unaffiliated Only 3% started before 1985 Affiliated Peak Growth at 12% in 2011 Unaffiliated Peak at 17% in 2012

50 %

? ? ?

Shopping Behavior

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Homebrewers shop a lot!

• Nearly all shop at 2 local stores in

person (95%) an average of 8-9 times per year (or every 45 days).

• The majority (80%) also shop 3 online

store websites an average of 5 times per year (about every 2 months).

• They are spending roughly $460 on

general supplies and ingredients and $330 on major equipment - a total of nearly $800 per year.

AVERAGE in P12M Total Local Stores in Person % Shopped Local Stores in Person 95% # of Times 8.6 # of Different Stores Shopped 2.0 Online Stores % Shopped Online 79% Times Shopped Online 5.4 # of Different Stores Shopped 2.7 Spending in P12M General supplies & ingredients $459 Major equipment ($50+ per item) $330 TOTAL SPEND $789

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Major Take Aways

• Overall revenue growth: 10.4% (20.1% in 2013

Survey)

• Most seeing slower growth in beginner beer kit sales
• Growth in new shops:

37% open ≤ 3 years (43% in 2013 survey) 7% open ≤ 1 year (7% in 2013 survey)

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Potential Market Factors

• # of Shops
• Changes in brewing methods:
• More all-grain
• Smaller batch sizes
• Changes in frequency of brewing
• Changing demographic
• Economy

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Social Media Best Practices

Tamre Mullins, Peloton Wealth Strategists

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Recruit & Retain New Soldiers in Your Homebrewing Army

Scott Michaels, Bull City Homebrew

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Homebrew Expo

12:00 p.m. – 5:00 p.m. Industry Workshop badge grants access to this afternoon’s session.

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