Nevada Beverage Company
Nevada Beverage Company
Est. 1948
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Jan/Feb Craft Beer Newsletter

February 1, 2017 Written by Derick Hufstader

Why Can’t I Find This Beer?

Almost daily I get asked about why certain breweries aren’t available for purchase in our state. I’m told “you should carry (fill in the blank) brewery because they would do great”, or the opposite questions “why can’t I find XYZ brewery anymore?” So to start this New Yearout I just wanted to explain some distribution basics and hopefully answer a lot of these questions in the process.

In order to have a beer available in this state, beer suppliers must go through the 3-tier system. This system was established after prohibition to regulate and control the alcohol industry and establish a method for taxes. The basic structure of the system is, beer producers can only sell their products to a licensed beer wholesaler, who then can only sell to a retailer who, in-turn can only sell to a consumer. In most cases it’s not as easy as calling up a brewery and saying “Hey you got great beer and we want to sell you in Las Vegas”…..wish it was!

The brewery must first want to expand into this market and have the capacity to do so. When a brewery decides on entering a new market they will, in most cases, visit that market multiple times. They will interview wholesalers during these trips, tour the market checking out liquor stores, grocery stores and local watering holes. They will strike up conversations with clerks, bartenders, business owners andeven patrons to get a feel for that market. During this “courting process” discussions are had with wholesalers on margins, shipping, pricing, 1, 2 and 3 year sales projections, and who will support the growth of the brand more. Once all this is discussed the brewery will make adecision on which wholesaler is the best fit for their brewery and who they think will support and grow their brand.

This is just the first decision of many. Deciding what to charge in regards to pricing in a market is just as big of a decision. All beer has a cost to produce, and then the brewery needs to make their money so they mark it up to the wholesaler/distributor. Shipping is always a factor in these discussions and can be the breaking point to many of these deals. For example; a refrigerated truck coming from the East Coast to Las Vegas can easily cost $4,500. That cost gets broken down and added to the cost of each case and keg. Add in the brewery’s mark up and when it hits the wholesalers dock, this is known as FOB (Freight on Board)… add in NV State sales tax ($.16 per gallon) and you finally arrive at the “Laid-In Price”. The wholesaler now needs to factor in what they need to make on the product (margin) to cover sales, shipping and handling to the Retailer. Lastly, the Retailer must add in their margin requirements. This can create “sticker shock” when someone is used to paying $7.99 for that six pack on the East coast and now it’s $10.99 on the West coast. Shipping is a HUGE factor in these beers.

Now in some cases the brewery and the distributor are willing to give up some margin because the freight cost is pricey but theystill want the beer in the state. So maybe that same six-pack is now $8.99. It’s still more than that consumer is use to paying. To make up that difference the wholesaler needs to fill a truck to make this worthwhile because the $4,500 is the cost whether it’s a full or partial truck. So the wholesaler needs to consider SKU mix (which beer packages and sizes are they going to carry), and remember they have other breweries they carry so normally not all SKUs are brought in initially. This is mostly due to lack of room and keeping product fresh (beer is a foodproduct). If some beer is not pulling through and the wholesaler cannot fill a truck with product that is selling, they have to look at other alternatives because once a wholesaler buys it they own it… just like a retailer. The brewery does not take back product that doesn’t sell. So it’s very important to forecast sales properly. Wholesalers will sometimes try and pair that truck with multiple breweries they carry to make a full truck (this will increase the freight cost because they have to pay for multiple stops along the route).

The worst case scenario – the beer is not selling in the market for any number of reasons we discussed, the brewery and/or wholesaler will decided to terminate that partnership. Wholesalers cannot afford to take a consistent loss on product that is going out of code and not selling. Breweries do not want their products represented in the market that are old and not at their optimal tasting standards. With over 5,000 craft breweries in the US now, breweries often only have one shot to impress a consumer. If that consumers first experience with that brewery is an old expired beer, they probably will not try another from them in the future.

Breweries, Wholesalers and Retailers must protect their image and their bottom line because in the end this is still a business.

 

New Arrivals

 

 

Abita Mardi Gras-6.5%
Style-Maibock

Abita Bock is brewed with pale,
pilsner and caramel malts and
German Perle hops. Our bock is
similar to German maibocks with
its rich malt flavor and full body.
Great with roasted beef or pork.
Try it with Mexican food, too.

Elysian Slip Shot-6%
Style: Milk Stout
96 Points Ratebeer

Split Shot combines the local
talents of Elysian Brewing and
Stumptown Coffee in a deliciously
smooth, very Northwest beer.

10 Barrel Pub Beer-5%
Style: American Lager

Created as an easy drinking craft lager
for the brewery employees so they
could enjoy during the day and still be
productive. Floral hops with a slight
pear character. Pub Beer is light and
crisp with high carbonation and a
minor creamy mouthfeel.

Alaskan Smack Grapefruit-7.2%
Style: Grapefruit IPA

With the bright tangy punch of
grapefruit coupled with the Three-
C hop combination of Citra®,
Centennial and Cascade, the flavor
of this beer is unmistakably citrusy
and juicy. This IPA also has a
generous helping of Rye in the malt
build, to bring out a slight
pepperiness at the finish.
Limited Release-Pilot Series

Alaskan Husky-7%
Style: Mosaic IPA

Alaskan Husky IPA is based on a
small batch SMaSH Mosaic® IPA
recipe using a single malt and single
hop to explore the specific desired
characteristics of certain malts and
hops. Hop varieties are often best
known for either bittering
properties or for high aromatics
and complex flavors. The Mosaic®
hop is an example of a hop that can
bring both elements to a beer.

Breckenridge IPA-6.3%
Style: American IPA

Scrutiny of ingredients and
experimentation with process
resulted in this yin and yang –
distinctively pleasant floral aroma
with crisp hop flavor that’s
mellowed by Full Pint malt, a
relatively new and unique malt
variety.

 Breckenridge 471 BA IPA-11.2%
Style-Barrel Aged IPA

Imperial White IPA offers flavors of
honey, clove and banana from its
Belgian yeast. Subtle wheat flavor
is in harmony with lemongrass,
which adds a hint of citrus. Citra
and Amarillo hops impart pleasant
hop flavor and aromas of tropical
fruit and pine.
Very Limited release

 

Joseph James Bourbon RIS
Style-Barrel aged Imperial Stout

Incredibly complex depth and
flavors produced during barrel
aging creates great anticipation for
this release each year. Flavors of
Vanilla, Coffee and Chocolatekissed
by Bourbon; makes this beer
one to sipped and savored or laid
down and enjoyed at a special
occasion.

 Elysian Hubris-8.6%
Style: IPA
96 Points RateBeer

Our hop delivery device. A mash-tonful
 of Pale malt with a handful of
Wheat; Chinook, Cascade and
Centennial hops everywhere with a
grantful of whole Mt. Hoods.

 Lovelady Hopatomic-8.2%
Style: Imperial IPA

A tribute to Southern Nevada’s
past in developing the Atomic
Bomb. HopAtomic Double IPA
features an “explosion” of tropical
fruit aromas paired with a sturdy
backbone of malt goodness that
makes this Nevada ale supremely
drinkable and satisfying. Loaded
with hops (Mosaic, Citra,
Centennial)

 Ninkasi Believer-6.9%
Style: Double Red Ale

Multiple malts are used to create
caramel, toffy, date, fig, subtle
chocolate, and a hint of roasted
malt complexity. The hops lend to
an earthy and floral hoppiness to
balance the malt. The balance of
the two aspects with the alcohol
content make for an incredibly
drinkable and full-flavored beer

 Goose Island Preseason Lager-5.8%
Style: Amber Lager

This amber lager combines citrus,
spicy and a herbal hop note with a
balanced bready malt body and a
bright bitter finish. The name
“Preseason” refers to the time right
after the New Year when many are
ready for winter to be over and for
Spring to arrive.

 Breckenridge Ophelia-6%
Style-Hoppy Wheat

A tale of two styles. The
quintessential good girl gone mad.
Subtle hints of citrus round out the
complex aroma of Mosaic hops, for
a beer so drinkable, it’ll last
through multiple acts.

 Kona Koko Brown-5.5%
Style-Toasted Coconut Brown AleIs there anything more iconic of the
lush tropics than the coconut? Kick
back with a Koko Brown, brewed
with real toasted coconut, and
savor the mahogany color and
smooth, roasty malt taste.

 Kona Hanalei Island IPA-4.5%
Style: IPA

This easy-drinking island-inspired IPA
is Kona Brewing Co.’s homage to
Kauai, “the most beautiful place on
earth.” Passionfruit, orange and
guava balance the subtle bitterness of
aromatic Azacca and Galaxy hops to
deliver a coppery laidback, sessionstyle
ale bright with tropical flavors 

 

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