Should low-cost beer be added to your beverage portfolio in 2023?
In the latest episode of their podcast 1000 Hectos, Ludovic and Dorothée address a burning dilemma for the craft brewerieswhether to embark on a beer cheap in these lean times? They examine the pros and cons of such a strategy. On the one hand, cheap beer could help breweries attract new customers and weather the recession. But on the other, it could damage their brand image and put off their regular customers.
Ludovic and Dorothée are also exploring the idea of distributing their beers in supermarkets, which would enable them to reach a much wider audience. They caution, however, that it's important to calculate costs and prices carefully, and not to deny one's values. A fascinating discussion that raises essential questions for the future of craft breweries.
Craft beer faces recession
It's often said that beer is recession-proof. But is it really? The reality is more nuanced. In times of recession, consumers tend to turn to less expensive options. This could have a significant impact on the craft beer sector, which is characterized by higher-quality but often more expensive products.
The dangers of budget beer
Faced with the recession, some brewers are considering offering low-priced beers. It's an attractive strategy, but it's not without risks. Indeed, offering a high-quality product at a low price is a major challenge. This may mean compromising on the quality of ingredients or the manufacturing process, which in turn may affect the quality of the product. consumer perception of the brand.
Would you like to delve deeper and access a detailed analysis of the trends that will shape the beer world in 2025?
Read our full report « Trends in beer consumption - Season 2024-2025», a wealth of information and advice to help you get ahead of the game.
Why is it risky?
Offering quality beer at a low price is tedious. You have to find the right balance between production costs and retail price. sale, without compromising product quality. This can be an insurmountable challenge for some breweries. What's more, this strategy can lead to mistrust of the rest of the brewery's portfolio. brand. If a beer is sold at a very low price, the consumers may wonder whether the brand's other products are really worth the price.
We also run the risk of competing directly with industrial breweries on their own turf, which could prove difficult given their market dominance.
Low-cost beer opportunities
Despite these risks, there are potential opportunities. By offering more affordable beer, craft breweries could attract a wider audience not accustomed to specialty stores. What's more, in times of economic uncertainty, it's important to remain proactive and look for solutions to stay competitive. Launching a «cheap» beer could be one such solution, provided that quality is not sacrificed.
In times of economic uncertainty, it's important to remain proactive and look for solutions to stay competitive.
How do you know if this is the right strategy for your brewery?
Before deciding to offer a low-priced beer, it's important to ask yourself three key questions:
1. Is there a market opportunity?
The first step is to analyze the market to determine whether there is a real need for low-cost beers. This may require in-depth market research to understand consumer expectations and behaviors.
2. Can you compete?
The next step is to assess whether you can offer a low-priced beer while maintaining the quality of your product. This may involve reviewing your production process or finding ways to optimize your costs.
3. What impact will this have on your parent brand?
Finally, consider the impact of this strategy on your brand's perception. Offering a low-priced beer can dilute your brand image and affect the perception of your other products.
Offering low-priced beers in times of recession and inflation is a major challenge for brewers. It's a risky strategy that requires careful thought. It's essential to understand consumer expectations, assess your ability to compete, and consider the impact on your brand. Ultimately, each brasserie must weigh up the pros and cons and decide whether this strategy is in line with its values and long-term objectives.
Did you enjoy this episode of 1000 Hectos ? Give it a try...
- 5 steps to maximize the impact of beer competitions
- How to judge a beer at a competition: behind the scenes and the truth about medals
- Beer market trends in CHR 2024
- Brewing news: between fiscal challenges, alcohol-free and sustainable innovations
- The secrets of mascots to boost your brand identity
- New European regulations raise questions about pesticides in hops
