Craft Beer
Posted by EYHokie
An article on CNN Money about craft beer got me wondering, what’s
the risk for craft breweries?
Protection of storage
As the beer is being made, the vats of beer must be secured.
Contaminates introduced into the product can and likely will have a big impact
on taste and longevity.
Length of storage
How long can beer sit in storage? That I am not sure of. Regardless, inventory must be tracked and the
storage date should always be known. LIFO? FIFO?
Transportation of goods
In the beginning, control of goods is very important. The
company cannot lose product when their volume is low. Do you keep shipment in-house? Do you work
with a distributer that will carry your inventory? I would image as you grow
you will have to work with a distributer.
Lack of back-office expertise
The brew master is likely a dreamer. As I’ve seen on shark
tank several times, the investors are willing to invest in the product with the
caveat that an MBA be hired to direct the company. I know, an MBA Is not
required but you atleast know they have the training.
Inadequate software (GL package)
Similar to above, how much was invested in their GL package?
Tracking the finances does little to get the product on the street, as a brewer
may think. Their goal is to make a good product and get it in restaurants and grocery
stores. Spend on back-office software may not appear important. If not spend, adequate software.
In the 10 minutes I have, I’ve created the short list
above.
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