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Posts Tagged ‘beer’

Small companies adding value: the rise of microbrewing

Wednesday, 27 January 2010 13:44 Written by Eric Garland 2 Comments

When I wrote Future Inc: How Businesses Can Anticipate and Profit from What’s Next, I chose the future of beer as a case study to illustrate forecasting methodology. The reasons were many. Beer is a 5,000 year-old product, and not as tech-driven as information technology – so you can’t fall back on techno-optimism when thinking about its future. Still, beer is wildly interconnected: it encompasses agriculture, biotechnology, transportation, retailing, government regulation, cuisine, social impacts, and much more. Despite being simple, the changes in the beer industry are rich and interesting. Plus, beer is delicious.

One of the key forecasts I uncovered while researching the book was the rise of microbrewing. The major beer brands around the world were stalling while small, local and national operations were profitably targeting a small and growing segment of beer drinkers and nascent foodies.

Here we are four years later, and the trend has continued apace. This article in the St. Louis Post-Dispatch shows how even in the shadows of the now-Belgian owned Anheuser-Busch, microbrewing is taking off at mid-double digit rates while sales of the majors now dip.

One of the reasons behind this trend actually transcends the beverage market. In our research in the field of economic development, Competitive Futures has learned that the rise in local beers often coincide with resurgences of economic vitality. Local beers become a flag around which communities rally. It often becomes associated with “local success stories” of businesses started in someone’s garage, soon requiring real capital investment in manufacturing infrastructure and jobs with good wages. Local ingredients and traditions are incorporated; cultures are revered. In short, microbrews are successful because they create value on multiple levels – for shareholders, employees, municipalities, and of course, beer lovers.

Now, can large companies create value on this level? Perhaps only if they begin thinking in this superconnected way.

Beer: Recession proof, harbinger of economic renaissance

Tuesday, 17 February 2009 09:07 Written by Eric Garland 0 Comments

Those of you who read Future, Inc. know my special love for beer. It’s a magical substance for oh, so many reasons, beer-stylesbut among its many mystical properties is that it’s RECESSION-PROOF.

This is a simple local news story about a Carolina brewer starting a business in a down market. The punchline is that it’s almost always safe to start a business doing delicious craft brew beer, since sales of alcohol are the last to slump, and since the segment is still growing 14% a year.

One of the things we discovered about local beer was that it ends up being the flag for local economic recovery. So, neighbors out of work? Tough times ahead? Drink your local beer with your friends – it may be the signal of economic vitality right around the corner.

About the blog

This is the official trend blog of Competitive Futures, a management consultancy that provides trend research and analysis for business and government around the world. Here, we update you on interesting trends we see as part of our work for our clients.


For managing partner Eric Garland's new author and speaker blog, please consult and bookmark http://www.ericgarland.co

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