Problems in homebrew retail economics

Problems in online homebrew retail

As more and more local homebrew stores close, more and more homebrewers are shifting to online retail. While online sales are convenient and make homebrewing accessible anyone with an address, the model of large homebrew retailers leaves gaps in customer-side efficiency, education, and community.

Approximately 2/3 of homebrewers buy brewing ingredients from online retailers, most of which are a small collection of large, warehouse-like stores. These companies process so much volume that they logistically "cannot" package precise amounts. "Cannot" custom mill is a limitation of the operating model, not that it is impossible. Efficiency and margin-minded decision making directly shifts waste to the customer. This is not an optimal relationship for a homebrewer looking for serious quality standards, variable control, and flexibility.

This is a win/lose relationship in two ways:

  1. The store wins by forcing 1 lb grain minimums and can move more grain with simpler SKU models; the customer loses by needing to commit to order minimums
  2. The store wins by milling efficient 1 lb packaging runs without labeling milling dates; the customer loses by not knowing how fresh their grain is

Of course, increased efficiency lowers prices. But by paying less, the next layer does little to actually help the homebrewer. In fact, most online outfits are more expensive than LHBS.

  • Lack of transparency incentivizes lackluster and lazy quality standards
    • Just because grain doesn't need date labels doesn't mean it shouldn't
  • A homebrewer might avoid buying certain grains due to an order minimum
    • Discourages recipes with "color adjustment," "just-a-hint-of," "a seasoning," etc.
    • Not goal-based brewing
  • A homebrewer might build a recipe based around an order minimum
    • Most people are inclined to not waste good products
    • Are you really going to use 1lb of Carafa in a 10lb recipe?
    • Not goal-based brewing
  • If a homebrewer does not use a full pound of milled grain:
    • The remaining grain is wasted (just a few ounces adds up at this scale)
    • The remaining value is wasted (just a few dollars adds up at this scale)
    • The remaining grain is tabled and certainly stale by the next brew session, reducing quality and joy of a beer not turning out as it should

When there are only so many homebrewers to go around, these levers should be very carefully considered and viewed from the complete brew-day experience and beyond.

Homebrewing is niche. It has a dedicated, passionate base to the greater brewing scene. Homebrewing suppliers should nurture and actively participate in developing accessibility to the hobby and reduce barriers to making great beer in an -actual- -truly- -honestly- approachable, welcoming environment. Effective suppliers should probably have similar core values to the hippy-like positions of craft brewers. They should not economize at the expense of the homebrewer.