Business behind limited distribution?

Beer Talk
1

I am always trying to learn more about beer was hoping someone could share some knowledge of why 2 great beer companies have had such great disparities in availability.

Stone Brewing & 3 Floyd’s, both started in 1996 (apologies if erroneous).

I’m not sure if Stone met demand because of popularity or popularity was part of availability and quality.

Now for over two decades, and for a long time (early to late 2000’s - 3 Floyd’s was considered the top! Their brews were the first white whales.). But how is it that with that much acclaim and I’m sure capital it still remains out of reach for almost every other state outside of IL, IN, OH, KY, WI? Is this by design, and if so why? I mean we all love beer, but it’s still a business right? Wouldn’t you want to see your fans get your products?

What don’t I know behind the scenes?

2

Simply put, you need to sell wider if you don’t sells enough in your market. But capacity makes a different. 3 Floyds is a much smaller brewery than Stone. 3 Floyds still sells out in their market. They have no reason to expand further out. Similarly, New Glarus doesn’t sell outside WI bc they don’t need to. Stone has a larger capacity than 3 Floyds and have a different business model. So, they distribute further out.

As an alternative, Urban Family is a Seattle brewery that barely sells in their home market. Thus, you can often find their beers gathering dust across other states in the US.

Hope that makes sense.

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