2014 American Homebrewers Association Industry Workshop Agenda - PowerPoint PPT Presentation

2014 American Homebrewers Association Industry Workshop

Agenda 9:00 Introduction 9:10 State of the Homebrew Industry 9:45 Break 10:00 Social Media Best Practices 11:00 Recruit & Retain New Soldiers in Your Homebrewing Army 12:00 Homebrew Expo & Social Club 2

Antitrust Guidelines for Meetings We cannot discuss any of the following topics: • Prices, pricing procedures, margins, what constitutes a fair profit level, changes in or stabilization of prices, terms or conditions of sale. • Pricing practices of any industry member. • Forecasts of price increases or decreases. • Specific credit terms, discounts, rebates, freight allowances, profits, profit margins or costs, market shares, allocation of markets, any limitation on sales, sales territories or distribution practices. • Selection, rejection, boycott, refusal to deal with, or termination of any suppliers or customers. 3

AHA Governing Committee Industry Subcommittee Gary Glass, AHA Chair: Jake Keeler, AHA GC Chair Chris Graham, MoreBeer! Reed Antis, Saratoga Zymurgist Duke Geren, FH Steinbart John Blichmann, Blichmann Chris Opela, BrewMaster Engineering Steve Parr, AHA Juno Choi , BSG HandCraft Larry Clouser, BrewCraft Justin Crossley, AHA GC, The Brewing Brad Smith, BeerSmith Network Brian Wright, LD Carlson Michael Dawson, Wyeast Chris Farley , Northern Brewer 4

What is the Industry Sub-Committee? Committee's function The Industry Subcommittee was formed during the National Homebrewers Conference of 2010. The committee’s primary goals are to foster better communication between the AHA and industry entities, as well as provide resources, assistance, and guidance to the AHA based on concerns brought forward by said members of the homebrewing industry. 5

2013/2014 Activities 1. Expanded programming for the Industry Workshop (formally called Retailers Roundtable ). 2. Review and develop questions for the annual industry survey 3. Exploring the idea of creating an industry trade organization of some kind - perhaps through the AHA. 6

2014 Industry Overview 7

2014 AHA Homebrew Supply Shop Survey 408 shops — 48% increase from 2013 Shops from 48 states participated (ND & SC) 8

Revenue 2013 & 2012 % ∆ Gross % ∆ Gross % ∆ Gross All Shops Revenue 2013 Revenue 2012* Revenue Q4 2013 All Shops 10.4% 26.2% 13.1% Not Primarily Homebrew 10.4% 5.6% 2.5% Primarily Homebrew 10.5% 28.7% 13.8% Homebrew-70% online 13.8% 21.9% 7.9% Homebrew-70% online; 5+ 5.6% 21.9% 3.2% yrs * 2012 figures are from last year’s survey 9

Analysis of Gross Revenue 54% ≥ 10% growth in 2013 (57% in 2012) 34% ≥ 20% growth in 2013 (40% in 2012) 17% experienced a decline in 2013 (18% in 2012) 10

Years in Business • Average: 10 years • Median: 5 years • 37% open ≤ 3 years (43% in 2013 survey) • 7% open ≤ 1 year (7% in 2013 survey) 11

Number of Shops In Area How has the number of home beer and wine retailers in your area changed over the last year? 60.4% Increased 57.8% 59.8% 37.2% 2014 Stayed the Same 36.8% 2013 37.2% 2012 2.4% Decreased 5.4% 3.0% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 12

Customer Gender Percentage of Female Customers Average Response Year Beer Wine 2014 10.9% 25.7% 2013 11.1% 23.6% 2012 9.3% 24.1% 2011 11.7% 27.2% 13

% Of Purchases That Include Malt Extract 80.0% 70.0% 65.0% 70.0% 64.0% 61.1% 55.1% 60.0% 50.0% 50.0% Average 40.0% Median 30.0% 20.0% 10.0% 0.0% 2012 2013 2014 14

Beginner Beer Equipment Kit Sales 16.7% Increase > 20% 29.0% 33.0% 13.7% Stayed same 10.7% 2014 8.6% 2013 20.3% Decreased 8.7% 7.8% 2012 66.1% 80.5% Increased 83.6% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 2014 2013 2012 Average 23.7% 23.1% 16.4% Median 15.0% 18.0% 10.00% 15

Beginner Wine Equipment Kit Sales 18.4% Increase > 20% 20.4% 22.4% Stayed same 18.9% 2014 8.5% Decreased 2013 12.6% 69.1% Increase 68.5% 0.0% 20.0% 40.0% 60.0% 80.0% 2014 2013 Average 21.4% 15.3% Median 10.0% 8.0% 16

Beginner Kit Sales Cont’d Among the customers who buy beginner homebrew kits at your shop, please estimate what would be the most common age group 0.0% 60 or older 0.0% 0.0% 2.5% 50-59 1.2% 1.4% 11.0% 40-49 8.2% 2014 7.1% 51.6% 2013 30-39 55.3% 46.8% 2012 33.9% 25-29 32.9% 41.8% 1.1% <25 years old 2.4% 2.8% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 17

Beginner Kit Sales Cont’d • Among the customers who buy beginner winemaking kits at your shop, please estimate what would be the most common age group for: 0.7% 60 or older 1.8% 0.0% 7.9% 50-59 12.0% 7.2% 45.5% 40-49 42.8% 2014 44.9% 39.0% 2013 30-39 34.3% 36.2% 2012 5.1% 25-29 8.4% 9.4% 1.8% <25 years old 0.6% 2.2% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% 18

How Long Homebrewing Two-thirds of Homebrewers started in the last 8 years, with over half starting between 2009 and 2013 (when 10% to 17% started each year). Started between 2005-2013: 66% Total Year Started Homebrewing: % Each Year 62% AHA-affiliated 75% Unaffiliated Total AHA-affiliated Unaffiliated 18% 16% 14% ? 12% Started between 1985-2004: 30% Total 10% 34% AHA-affiliated 8% 22% Unaffiliated ? 6% 50 4% Only 3% started % ? before 1985 Affiliated Peak Growth at 12% in 2011 2% Unaffiliated Peak at 17% in 2012 0% 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 19

Shopping Behavior AVERAGE in P12M Total Homebrewers shop a lot! Local Stores in Person • Nearly all shop at 2 local stores in % Shopped Local Stores in Person 95% person (95%) an average of 8-9 times # of Times 8.6 per year (or every 45 days). # of Different Stores Shopped 2.0 • Online Stores The majority (80%) also shop 3 online % Shopped Online 79% store websites an average of 5 times per year (about every 2 months). Times Shopped Online 5.4 # of Different Stores Shopped 2.7 • They are spending roughly $460 on Spending in P12M general supplies and ingredients and General supplies & ingredients $459 $330 on major equipment - a total of Major equipment ($50+ per item) $330 nearly $800 per year. TOTAL SPEND $789 20

Major Take Aways • Overall revenue growth: 10.4% (20.1% in 2013 Survey) • Most seeing slower growth in beginner beer kit sales • Growth in new shops: 37% open ≤ 3 years (43% in 2013 survey) 7% open ≤ 1 year (7% in 2013 survey) 21

Potential Market Factors • # of Shops • Changes in brewing methods: o More all-grain o Smaller batch sizes • Changes in frequency of brewing • Changing demographic • Economy 22

Social Media Best Practices Tamre Mullins, Peloton Wealth Strategists 23

Recruit & Retain New Soldiers in Your Homebrewing Army Scott Michaels, Bull City Homebrew 24

Homebrew Expo 12:00 p.m. – 5:00 p.m. Industry Workshop badge grants access to this afternoon’s session. 25

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