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Messages - nateo

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Going Pro / Re: The most expensive ingredient in beer...
« on: April 06, 2015, 03:54:28 PM »
Is it just raw material? RM+ labor? RM + Labor + utilities and rent? How about amortization on equipment?

Exactly. The most expensive ingredient in beer is time.

Going Pro / Re: Equity Investors ROI
« on: April 06, 2015, 03:45:57 PM »
What you're describing is basically cumulative preferred dividends. If you have a C corp you can set up multiple classes of stock, so like you could keep 100% of the common stock with 100% of the voting rights but sell preferred stock. Boston Beer has basically the same setup.

But keep in mind if you're selling any securities (stock in your own company) you still have to comply with all applicable securities laws. So be conservative in your business plan and your sales pitch or you'll open yourself up to significant liability.

The Pub / Re: Elysian Just sold to Anheuser-Busch
« on: January 30, 2015, 09:36:35 AM »
I don't think this takes away from the point that big corporations use their massive marketing budgets to create demand beyond what the quality of a product might warrant. The smaller you are, the more you rely on the quality of your product. Being big doesn't mean you can make a crappy product but you sure have more wiggle room to cut back on expensive ingredients.

"Marketing" is why dumb people buy stuff you don't like. "Quality" is why you buy stuff you like. I think it's pretty condescending to tell people "You don't actually like that, you're just a rube."

Maybe other people like Bud even more than their marketing might "warrant"? Maybe you like Dogfish Head more than the quality "warrants"? There are tons of small breweries that are successful because they position themselves well (we're the cool guys, anti-corporate, local/whatever) and make pretty bland, middling beer.

However, that cost of sales is a compound number. it is ingredients, labor, packaging. so marketing is roughly 30% of the cost of everything else involved in making beer. Still pretty high no?

Cost of sales includes depreciation on property, plant and equipment as well. "Marketing" includes basically anything to get the stuff from the warehouse to the consumer. Beer is heavy and perishable, logistics for such products are very complicated on a global scale, so there are a lot of expenses incurred under that category that don't have anything to do with Super Bowl commercials or Clydesdales.

Edit: technically receiving and storing beer in warehouses can be capitalized into the cost of sales. So inbound logistics, handling, and the appropriate amount of warehouse overhead would rolled into the cost of sales, and all outbound logistics would be part of the selling expenses.

The Pub / Re: Elysian Just sold to Anheuser-Busch
« on: January 30, 2015, 09:09:50 AM »
It's why the majors have bigger marketing budgets than production budgets.

I really respect your opinion on a number of topics, but that statement is complete nonsense.

Pull up the full report, scroll down to the consolidated income statement.

Cost of sales for 2013 was $17,594m, while sales and marketing expense was $5,958m. That figure includes undisclosed amortizations for distribution and supply relationships they may have purchased, as well as distribution software and equipment, etc. So it's hard to determine exactly how much they spend on "marketing" in terms of the common usage of the word. Most logistics operations get rolled into the "sales and marketing" category.

In any case, production is a way bigger number.

The Pub / Re: Elysian Just sold to Anheuser-Busch
« on: January 28, 2015, 09:26:46 AM »
I'm not so sure you can blame the drift away from hops in bud on manipulation by AB.

Yeah, that was my point. Things change, some stuff gets worse, some stuff gets better. You can't point at one company and say "they're responsible" when most likely they were just responding to changing tastes.

The Pub / Re: Elysian Just sold to Anheuser-Busch
« on: January 27, 2015, 07:20:24 PM »
incremental adjustments hide major changes over years/decades while adjusting customer expectations and reducing production costs/increasing profit margins.

Circle of life, bro. How long does it take to recoup the ROI from buying Elysian? That's exactly how long Elysian needs to make money. The brewing industry in general is basically just trying to manage a slow decline at this point. The big boys are diversifying away from beer, because while craft is growing, the rest of the market shrinking a lot faster.

There is nothing made that is awesome forever, either due to changing tastes, economic factors, or the general entropy enveloping the universe. People loved Fat Tire at one point, now I don't know anyone who drinks Fat Tire. When Elysian starts sucking that'll just create opportunities for other brewers.

Ingredients / Re: hops for kolsch 'style' ale
« on: January 12, 2015, 12:22:12 PM »
Preference on WLP029 or WY2565?  May split the batch and try both.

Both make fine kolsch style beers. The beer in my avatar is a kolsch made with WLP029 - very easy to get to drop clear (with a little fining). WY2565 has a bit more chardonnay like character while the WLP029 leans slightly more to an apple with chardonnay notes, though a bit more subtle.

Yeah, I'm not sure what that's about. None of the Kölsch I had tasted like WY2565. I wonder if that's an old-timey thing or something.

Ingredients / Re: hops for kolsch 'style' ale
« on: January 12, 2015, 09:36:47 AM »
All the Kölschs I had were extremely pale. I don't think you need Munich malt.

Ingredients / Re: hops for kolsch 'style' ale
« on: January 12, 2015, 08:44:39 AM »
The best Kölsch I had in Cologne used Spalter Select.

The Pub / Re: Jim Koch has a problem....
« on: January 11, 2015, 04:55:23 PM »
Angry Orchard is exactly as meh as Boston Lager.

I had some awesome ciders in Europe and it's a shame you can't really buy ciders like that here. The Sonoma Cider Anvil was pretty good though. Definitely one of the best ciders I've had in the States.

I read that article a few days ago and Koch definitely comes off as a psycho. I've read that since billionaires basically have hit the ceiling of what being rich can give them, they start to care a lot about how much people like them and respect their work. See also all the incredibly thin-skinned billionaire bankers on Wall Street who threw temper tantrums when people weren't constantly congratulating them for breaking the economy.

Events / Re: 2014 GBBF
« on: August 05, 2014, 01:47:41 AM »
Me and the missus are heading there after a trip to Paris. See you on Tuesday!

Beer Travel / Re: Cologne and Dusseldorf trip in the works
« on: August 03, 2014, 12:36:30 PM »
If you take the ICE, Brussels is only like 3 hours from Frankfurt. The beer is way better there.

Beer Travel / Re: Cologne and Dusseldorf trip in the works
« on: July 24, 2014, 04:13:35 AM »
In Cologne: Haus Töller for dinner, Hausbrauerei Päffgen and Braustelle for beer.

Beer Travel / Re: Any recommendations for Brussels/Bruges?
« on: July 18, 2014, 10:35:03 AM »
We just got back from Brugge and Brussel. We stayed at the Thon in Brussel and the Biskajer in Brugge. Thon was a basic, new hotel, but it had AC and we were on the 25th floor so the view was fantastic. Biskajer had a great breakfast included.

Mort Subite's beer was disappointing, but the building was really cool. If your time is limited, I'd stay away from Poechenellekelder too. It had a good selection, but the prices were high. It's right across from the Manneken Pis so most of the people there were buying cokes and didn't care about beer. Moeder Lambic was awesome. We went to the one on Fontainas. The staff was great and the selection was smaller, but better.

De Kelk in Brugge was awesome as well, with a huge selection and the bartender (owner?) really knew his stuff. There's a De Struise bottle shop in Brugge as well that's cool. Also Casa Patata had awesome fries and half chickens. That was really the best food we found. There are lots of places that are really expensive and not very good. Brussel has a lot more options for good food.

I would probably do like 2 days in Brugge and the rest of the time in Brussel. It's probably not as bad in the fall, but it was like Disney Land in Brugge. I think we saw maybe 5 locals in two days, and they were all at De Kelk.

Beer Travel / Re: Any recommendations for Brussels/Bruges?
« on: July 09, 2014, 05:03:19 AM »
Depending on your itinerary, you might want to get one of these while you're here:

There are lots of cool towns within a few hours of Brussels. Antwerpen, Ghent, Bruges (of course) and Ostend are all worth a visit, time permitting. I think you can skip Liege, the train station is kind of a amazing, but other than that, meh.

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