Craft Brewery Financial Training Podcast

If you're ready to get serious about improving brewery profits and cash flow, the Beer Business Finance Association is here for you.

The association is a network of brewery owners and managers who come together to share ideas and best practices to help run a financially successful beer business.

In today's podcast, I'll share why the network came to be, and how you can join and transform your brewery financial results. 

Key Points

• Quarterly financial round-table meetings with beer industry peers
• 24/7 online access to a library of brewery financial training courses
• Access to brewery workshops and webinars
• Brewery planning templates, models and spreadsheets

Resources

• Book a 15-minute discovery call 
• Learn more about the benefits of the Beer Business Finance Association

Today we talk variable compensation and incentives with Aaron Gore, Director of Partnerships and Community at Arryved.

Key Points

• 99% of breweries in the U.S. see taproom operations as the biggest profit driver
• How to align employee compensation and incentives with top brewery objectives
• Examples and benchmarks to follow when setting up incentives
• First steps to implement a variable comp plan in your brewery

Resources

• Connect with Aaron Gore, aaron.gore@arryved.com
• Learn more about Arryved POS

Michael Varda from Craft Beer Advisory Services joins the podcast and shares early insights on 2023 taproom data trends. 

The goal of Michaels data is to show you why customers come to your taproom and what you can do to keep them coming back. 

Key Points

• The #1 factor in negative experiences: It's food. 
• What the "Food Ladder" can teach you about a customer's likelihood to come back to your taproom.
• Michael's mind blowing data point: 1 in 3 negative experiences are related to first impressions.
• Two years ago, 1 in 10 negative experiences mentioned price. Now it's 1 in 4. Pricing matters. Michael shares tips on how to be strategic when pricing food and beverages.

Resources

• Learn more about Craft Beer Advisory Services
• Join the Network of beer industry professionals

Today on the podcast we hear from Brynn Keenan from Grist Analytics.  Brynn and I talk all about brewery data and key metrics to track to ensure cost effectiveness in production.
 
Key Topics

• Case studies of how Ninkasi and New Belgium cut production costs and increased tank capacity
• KPI's used to track efficiency, throughput, resource utilization and equipment performance

Resources

• Connect with Brynn, brynn@gristanalytics.com 
• Connect with other brewery owners and operators 

Today on the podcast we hear from Justina Marcial, Director of Operations at Cape May Brewery. 

Justina shares Cape May's story of selling their distribution rights, how they build a strong culture with their 7 core values, and how they take company communication to a new level with a structured process. 

Key Topics

• Cape May's financial and business planning process, software stack and 2024 goals
• SWOT planning, Swim Lanes, and Resolutions - Cape May's keys to success
• How to use a business coach in business planning

Resources

• Connect with Justina Marcial at Cape May Brewery
• Learn more about the financial network for brewery owners and operators

Today on the podcast we hear from Dave Williams, VP of Analytics & Insights at Bump Williams Consulting.

Dave shares tips on how to create a portfolio strategy for the new year. He highlights several areas where beer is "winning" and how breweries can take advantage. And we dig into pricing and price sensitivity at retail.

Pricing is a big deal. Dave shares what you need to know about pricing trends and consumer behavior, so that you can position your products for success.

Key Topics

• Trends in ABV, beer styles, pack sizes - what's working, what's not
• What you need to know about pricing and price elasticity

Resources

• Learn more about BWC and connect with Dave on LinkedIn
• Learn more about the network of beer industry professionals

In today's podcast we share tips and tactics to build your taproom financial plan.

The process of financial planning (budgeting) can be long and arduous. Today, we talk about how to make it easier and maybe even enjoyable!

Key Points

• How to motivate your taproom manager to tackle the budget
• The first steps you should take when starting your plan
• Models and explainer videos to guide you through creating your taproom financial plan

Resources

• Learn about Taproom Success and claim your FREE MONTH
• Taproom financial planning...where to begin

Today on the podcast we hear from Scott Birkner from Dogwood State Bank.

If you're looking to fund a startup brewery or expand existing operations, you'll want to listen to this podcast.

Scott shares all the details you need to know about SBA lending and how to position yourself to get the best loan possible. 

Key Points

• Types of SBA loans available to breweries 
• Eligibility requirements, interest rates and terms
• The most common errors breweries make in their financial projections
• Specific requirements for start-up brewery loans

Resources

• Connect with Scott Birkner - sbirkner@dsbnc.com or cell: 704.564.5940 
• Check out the financial network for breweries

In today's podcast Bump Williams shares an early read on the BWC growth strategy survey.  

The results are...surprising. 

The survey is sent to hundreds of retailers, wholesalers and breweries, and asks one simple question:  What are your strategies for growth in the upcoming year?

The results are tallied, sorted by the most common answers, and analyzed to determine overlap amongst the companies in the 3-tier system.  

One of the goals of the survey is to identify where there is alignment or common growth approaches in the 3-tier system. 

One big takeaway: The results show a lot of misalignment. 

What does misalignment look like? Past surveys have shown breweries focused on innovation, while distributors focus on core brands, and retailers emphasize high-end products.  Hard to grow when everyone is rowing in a different direction.

Key Points

• Top 3 growth strategies for retailers, wholesalers, and breweries
• The divergence of growth strategies keeps getting wider
• How beer industry companies can use this information to align their own growth plans

Resources

• Learn more about how Bump Williams Consulting can help with your growth strategy
• Join the network of beer industry pro's

Today we hear from Andrew Coplon, founder of Secret Hopper, a mystery shopping service for taprooms and brewpubs.

Andrew has tons of data to share from over 6,000 unique taproom visits.

Examples include adding paper menus to increase guest spending by 25% and increasing to-go beer sales by 5x with one simple question. 

Key Takeaways

• The most important taproom data points to measure and manage  
• Tactics to train and motivate your staff 
• How Secret Hopper provides feedback and data on the customer experience 

Resources

• Learn how Secret Hopper can transform your taproom business
• Data points: The impact of menu types on taproom spending

Today on the podcast we hear from Metazoa Brewing Vice President Lauren Frederick.

Lauren's background is in sales and marketing, but she shares her tips and tactics to learn the financial aspects of running a brewery.

Many brewery operators are non-financial managers. In today's episode you'll hear Lauren's journey from sales rep to vice president and the financial knowledge she learned along the way. 

Key Topics

• Metazoa's brewery financial planning process
• Software stack, key metrics, and compensation structures 
• Favorite industry publications, resources, and podcasts 

Resources

• Connect with Lauren Frederick - Lauren@metazoa.beer
• Join the beer industry finance group

Today on the podcast we review a tool you can use to amplify cash flow in your brewery, it's called Melio.

Melio is one of the fastest-growing B2B payments companies in the U.S. and is reinventing the way customers and suppliers pay each other.

You'll hear from Aaron Gervais, CEO and co-founder of Otherwise Brewing, a gluten-free brewery based in San Francisco. Aaron uses Melio to streamline customer receipts and supplier payments.

Key Topics

• How to use a payment platform to speed up collections from retailers
• Options to pay suppliers and vendors using Melio
• Otherwise Brewing's journey to create a gluten-free brewery

Resources

• Connect with Kate at Melio Payments: kate.michalowski@melio.com
• Learn more about Melio 

In today's podcast we talk brewery insurance with John Round and Shannon Prescott from the Richards Group.

John and Shannon share their insights on loss prevention, creative benefits, industry specific coverages to be aware of, and trends in the industry.

Key Topics

• How breweries can use creative benefits as a recruitment tool
• Insurance cost reduction tactics for breweries
• Areas where a broker can/should add value
• Insurance trends in the beer industry

Resources

• Learn more about the Richards Group
• Join the network for beer industry professionals

Today on the podcast we talk about grant seeking and grant writing with Tranice Watts

If you are a brewery owner or operator and you're interested in finding grant money you'll want to listen to this podcast

Tranice takes us through the state certification process, how to search for grants, and how the application process works.

Key Points

• How to search for grants (state and local)
• Types of grants (50/50 cost share or 100% funded)
• Keys to writing successful grant applications

Resources

• Connect with Tranice Watts and learn more about brewery grants, at Absurd Institute.org, or email  info@absurdinstitute.org 
• Join the network of beer industry professionals

Beer businesses are always on the lookout for ways to reduce costs and increase sales.

In today’s podcast we talk with Bud Dunn from VxP, who shares a tool that you can use to reduce finished product loss by 50% or more, and increase gross profit per CE by 20 cents or more.

Key Topics

• Volume is good, profits are better, how to use VxP to increase both
• How to align sales rep incentives with overall growth of the business
• How to get suppliers involved with incentives and co-op dollars

Resources

• Learn how to increase gross profit by 20 cents per CE in your business
• Check out the new network for beer wholesaler financial professionals

In today’s podcast we dive into the magical world of distributor contracts, and provide Five Steps you can follow to a better contract for your brewery.

The distributor contract is a big point of contention between craft breweries and distributors. Before any beer is delivered, the contract has to be reviewed, debated, negotiated, and eventually signed.

The challenge with most contracts is that both parties want the terms to be in their favor. Breweries want options to get out of the contract, and freedom to move their brand if the business relationship isn’t working.

Distributors want the brewery to be committed to them indefinitely. From the distributor perspective, they invest millions or tens of millions, in infrastructure and want to be sure that brands stay on the trucks to pay for all the investment.

Both parties want the advantage, but at a minimum, neither party wants to get stuck with a bad contract.

With so much emphasis on the distributor contract, what steps are you taking to ensure you get the best arrangement possible?

In this podcast I will outline five steps you can take to improve your contracts, and contractual relationships.

Five Steps to a Better Contract

1. Seek first to understand: Basic contract structure and terms
2. Know your state laws
3. Do your research, ask questions, determine the distributor options
4. Play a game you can win – Develop your own standard contract.
5. Self-distribute – Enter into a contract with yourself

Resources

• Get the free finance newsletter for breweries
• Learn more about the Beer Business Finance Association - a network of beer industry professionals focused on improving financial results

Today we learn all about SBA loans with Scott Birkner from Dogwood State Bank. If you need to borrow money to start or grow your brewery, then you need to listen to this podcast.

Scott breaks down all the details of SBA 7A and 504 loans and shares his advice on how to best prepare for the loan process.

Key Topics

• Financing trends in the brewing industry
• How to prepare for an SBA loan: When to start and what information you'll need to finish
• Loan requirements for start-up breweries

Resources

• Learn more about SBA lending with Dogwood State Bank, or email Scott at sbirkner@dsbnc.com
• Join the finance network for brewery owners and operators

Today we talk with Roger Kissling, VP of Sales for Iron Heart Canning. Roger shares all the details you need to know about mobile canning services.

Iron Heart has 28 warehouses in 27 stats, and packaged approximately 100 million cans last year.  If your brewery is thinking about canning solutions, Iron Heart may be the answer. 

Key Topics

• Logistics of mobile canning
• Pricing, contracts, expectations, roles and responsibilities of mobile canning
• Trends in package sizes and configurations

Resources

• Learn more about Iron Heart Canning and mobile canning services
• Get the free brewery finance newsletter

Chris Holden is Director of Sales and Marketing for the Hop Guild and a grower in New York state.  In today's podcast, Chris shares his insights on the state of the hop industry, recent trends, and talks about a new product called HOPSAUCE.

"HOPSAUCE® is The Hop Guild‘s proprietary hop oil developed to replace traditional hop products on the hot side and in the whirlpool. HOPSAUCE® will enhance flavor and aroma as well as reduce wort loss. HOPSAUCE® is flowable at room temps and makes for a perfect whirlpool product!"

Key Topics

• State of the hop industry and recent trends
• Hop contracts 101
• Production forecasting tips
• HOPSAUCE®, a new product that improves yield and saves money on shipping and storage

Resources

• Learn more about Hopsauce
• Sign up for the free brewery financial newsletter

In today's podcast we talk lessons learned starting, running and selling a brewery with Jeremy Cowan, founder of Shmaltz Brewing.

Jeremy's advice to those who want to start a brewery?  "Don't." 

"100% do not start a brewery. Go find a really cool brewery where the owners are spread a little thin, and go buy one, or become a partner...before you ever start your own brewery."

Key Topics

• Options to invest in a brewery, without actually starting one 
• How to raise pricing and margins with sustainability initiatives
• Jeremy's advice for brewery owners looking to sell

Resources

• Connect with Jeremy on LinkedIn
• Learn about a new network of brewery owners and operators: Beer Business Finance Association