(We were reached out by Lotus Beverage Alliance and Don Marcil, for them to be able to write this article for the blog – The Beer Thrillers. Everything written here is by them, and pictures involved are their own. They have written this article on their own, the opinions and words expressed here are theirs; The Beer Thrillers just edited and formatted the article.)

Eleven Reasons Why Every Craft Brewer Must Diversify Their Product Line

Craft beer sales and the number of independently-owned breweries entering the market have continued to grow steady over the past decade. According to The Brewers Association, the number of active craft breweries in the U.S. increased from 9,119 in June 2022 to 9,336 in June
2023, with the total number of independent craft breweries rising from 9,242 to 9,456.

A generation of steadfast beer drinkers fueled growth for years, but many are now moving on to spirits, wine, non-alcoholic or other beverages, their preferences evolving to match their budget, lifestyle and health. Taking their place, the next generation of consumers doesn’t have loyalty to one brand or style and demands a more diversified breed of brews. These days, they are finding new and crossover categories of beverage to satisfy their tastes. As a result, the landscape of the craft beer industry has become complicated and more difficult to navigate. We can see this in the acquisition and divesting activity of the larger beverage manufacturers, who are trying to stay ahead of trends and realizing that, although beer is still king, the big picture is one of diversified beverage companies.

Breweries must adapt and provide variety to customers  and seize opportunities to thrive in this
highly competitive and evolving industry. The increase in competition is a common issue for both new and existing businesses  as any industry evolves and matures. With craft brewing, staying at the head of the pack is key.. So, how can craft brewers differentiate themselves and compete? One way is to diversify your line of craft beverages or  as I like to describe it, embracing cross beverage opportunities. This can be tricky from a licensing perspective, depending on your state, but when properly done many small craft brewers have thrived in realms other than just beer. Diversification in the beverage industry isn’t a new concept but is becoming more and more noticeable, with the lines between beverage sections blurring the addition of Cold Brew, Kombucha, Wine, Seltzer and/or Spirits can augment your business positively.. A recent large-scale example is Boston Beer Co., makers of Samuel Adams. The beer manufacturer has been diversifying into hard seltzer and spirits, as demonstrated by its 2019 merger with Dogfish Head (the Delaware brewery has a distillery) and a partnership with Beam Suntory to develop new Ready-to-Drink (RTD) cocktails and spirits, a segment projected to grow substantially.

Why should craft brewers consider diversifying their products? Here are eleven key reasons:

1. Market Demand

Consumer preferences are fickle, especially with younger beer drinkers. The Boomer and Gen X beer drinkers were easy targets. They tend to stick to one brand or style of beer and generally were not looking to explore outside of their favorites. However, Millennials and Gen Z drinkers are loyal to no one. Their tastes and preferences can change rapidly leaving room for brewers to capture new audiences. Diversifying products allows you to adapt to evolving tastes and trends. By offering a variety of beer styles, flavors, and experiences, you can attract a broader range of customers and stay relevant in the competitive craft beer market. With proper licensing, using other beverage segments to create hybrid beverages can be beneficial and exciting to your customers. Millennials and Gen Z talk to – what appeals to friends will get shared with others.

2. Risk Mitigation

Relying solely on one or a few flagship products can be risky. If a brewer’s primary product loses popularity or faces production issues, it can significantly impact the business. Diversification helps spread this risk and increase the chances of finding an untapped segment of your customer base.

3. Seasonality

Different beer styles are more popular during different seasons. For example, lighter, refreshing beers might sell better in the summer, while darker, heavier options are favored in the winter. Embracing seasonal styles and release schedules allows for another product category that can easily be added without too much R&D. Diversifying allows brewers to cater to seasonal preferences and even give a new brew a try. Consumers are expecting limited
runs during various seasons, but if a new batch is really popular, a brewer might consider adding it to the permanent offerings.

4. Customer Loyalty

By offering a variety of products, craft brewers can build stronger relationships with customers. A diverse product range encourages repeat business, as customers are more likely to return to try new offerings. And as I noted above, consumers talk. So if you have a loyal customer, they are sure to tell their friends and family who might also turn into loyal customers.

5. Competitive Advantage

Diversifying can set a brewer apart from competitors who limit their selections. Unique and innovative brews can attract attention and draw customers seeking novel experiences. Beer releases are a great platform to make a new impression on existing customers as well as new customers.

6. Tap Into New Markets

Different beer styles may appeal to different demographics. By diversifying, brewers can tap into new markets and attract a broader customer base, including those who may not typically drink beer. Some brewers will set up booths at different festivals and events to test their offerings among different groups of customers. This is a fun way to get
involved in different communities and gain the attention of varying markets.

7. Collaborations and Partnerships

Diversification can lead to collaborations with other breweries or businesses, which can be beneficial for cross-promotion and expanding reach. Perhaps one of the businesses brings a skill set and the whole experience can contribute to learning new styles and techniques. For example, a particular  festival or event might sell your latest brew and customers from out of town try it. They take it back to their friends and family and spread the word in a new community. You have now solidified a new collaboration and expanded your customer base.

8. Brand Building

A diverse product line can help build a brand’s reputation for quality and creativity. You can really elevate your brand from being known for one style into a trend-leader by adding various tastes and brews to your lineup. Consumers often associate innovation and experimentation with craft breweries and diversifying is the perfect way to experiment and impress current followers while adding new ones.

9. Sustainability

Using different ingredients and production methods can be more sustainable in the long run. An example would be utilizing new grains that utilize less water to grow or partnering to make dog treats out of spent grains. Another example is if a brewer diversifies by making fruited sour beers, they can partner with farms to use excess or imperfect fruits that might otherwise go to waste. Brewers can always strive to reduce the amount of water they use; brewers used to consistently have a 10:1 water ratio but it’s not unheard of to have a 4:1 ratio in some breweries. There are a large number of opportunities to be explored.

10. Experimentation and Growth

Brewers need freedom to try new things. Diversification can be a source of creative and professional growth for brewers. Experimenting with new styles and techniques can keep the brewing team engaged and excited about their work. You never know what you might come up with – sometimes the best new brews are produced when you least expect it.

11. Revenue Growth

Ultimately, offering a wider range of products can lead to increased sales and revenue, which is essential for the sustainability and growth of any business. With a saturated market, the need to stand out and appeal to a wide variety of customers is key to keeping steady revenue. When executed well, new products and new markets translate into new revenue streams.

Adding a New Beverage Line

The good news is that adding a new beverage line to your production facility doesn’t have to break the bank. For most brewers, it’s a matter of repurposing the equipment you probably already have. Keep in mind that any additional equipment you’ll need will depend on the specific types of beverages you want to produce (e.g., ready-to-drink cocktails, seltzers, or wine) and the scale of your existing operation.  Here are a few considerations on equipment you might need to expand your craft beer offerings:

• Fermentation Vessels: To brew different styles of beer simultaneously, you’ll need more
  fermentation vessels. The size and number of these vessels depend on your production
  volume. Consider fermenters of various sizes to accommodate different batch sizes.
• Different Types of Grain and Hops: To brew a variety of beer styles, you may need
  specialty or unique types of grains (e.g., barley, wheat, rye from a particular region, or
  malting method) and hops (e.g southern hemisphere, seasonal wet hops, or hard to
  source experimental offerings), having connections to source them is key 
• Specialty Ingredients: If you plan to brew specialty or experimental beers, you may need
  additional ingredients like fruit purees, spices, herbs, or oak barrels for aging.
• Yeast Strains: Different beer styles often require specific yeast strains to achieve the
  desired flavor profiles. You may need a selection of yeast strains, including ale, lager,
  and specialty strains.
• Temperature Control: Depending on your brewing style, you might need additional
  temperature control equipment, such as fermentation chamber space or glycol cooling
  systems.
• Packaging Equipment: If you’re expanding your offerings, you may need additional
  bottling, canning, or kegging equipment to package your diverse beer styles efficiently.
• Quality Control Tools: To ensure consistency and quality across your beer styles,
  consider investing in laboratory equipment or utilize a lab for testing.
• Regulatory Compliance: Expanding your beer line might entail compliance with
  additional regulations and permits, so be prepared for potential legal and paperwork
  requirements.

Conducting a thorough business and financial analysis before expanding your craft beer line is essential. Calculate the costs of acquiring new equipment, ingredients, and personnel and compare them to your expected revenue from the diversified beer line. This will help you determine the feasibility and profitability of the program.

Keep in mind that the specific equipment and resources you need will vary based on your business’s unique goals and circumstances, so it’s advisable to consult with industry experts or experienced brewers for personalized guidance.

Diversify, But Retain Quality

It’s essential for craft brewers to balance diversification with maintaining quality and consistency.
While diversification can be beneficial, it should not come at the expense of the core quality and identity that customers associate with the brand. Brewers should also consider investing in market research and customer feedback when deciding which products to diversify into to ensure they align with their target audience’s preferences and expectations.

About the Author: Don Marcil

Don Marcil is a brewery systems consultant at Stout Tanks, a Lotus Beverage Alliance company. Don left his life as a graphic artist to pursue his dream of brewing beer. He enrolled in the American Brewers Guild in 2009, during which he did a five-week apprenticeship in Portland, Oregon, at Hopworks Urban Brewery, where he worked through 2018 as an active Production Brewer, Safety Manager, and Head of Cellar Operations. At Stout Tanks, Don helps brewers of all sizes acquire the equipment and engineering to take their beverage production to the next level.

(We were reached out by Lotus Beverage Alliance and Don Marcil, for them to be able to write this article for the blog – The Beer Thrillers. Everything written here is by them, and pictures involved are their own. They have written this article on their own, the opinions and words expressed here are theirs; The Beer Thrillers just edited and formatted the article.)

(We were reached out to via a third party for this article to be featured on our site, this is a paid content and paid guest post. If you would like more information on getting your own article published on the site, visit our WRITE FOR US page.)

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Sadly, yesterday, was my first time getting to use the curbside to-go feature from Troegs Brewing in Hershey. I had been wanting to use it nearly daily since opening, but unable to actually do it. All of the food has looked amazing, and I have heard absolutely nothing but amazing things about their pizzas; from D. Scott, J. Miller, and A. Parys, all recommending the pizzas. In fact, you can read A. Parys’ article about their excellent curbside to-go and why it makes Troegs Brewing a fantastic quarantine brewery: “What Makes a Great Quarantine Brewery?“.

I have been wanting to stop in and get all of their various scratch beers, and sadly, this has been my first scratch beer since Scratch 404. So yea, needless to say, I’ve missed out on quite a few scratch beers, something that would not have happened pre-coronavirus / COVID-19. One of my favorite things was to stop in at the Troegs Brewery and get a flight of 3-4 different scratch offerings and sample them while reading and check them off. And they have been putting out some stellar scratch offerings during this lockdown / quarantine too. Scratch 406 looked great – a sweet coffee milk stout; a style I love, and then scratches 409, 410, 411, 412, 414, 414, and 416 were all various styles of hazy IPAs and DIPAs. New England IPAs or DIPAs and all sorts. Unfortunately, they all sold out super fast on their ordering website and I never got to try any of those. (Hint hint if anyone has any still in their fridge and would be willing to part with them…. hint… hint…..). The biggest reason for their quick sell-out was that most of these were done on their new, small, innovative 15-barrell system for R&D (research and development), and having to can them up into 4-packs quickly depleted the stash, especially since crowlers, and 4pack cans have been the only way to get new (scratch) beer releases from the brewery. So, sadly, it just wasn’t meant to be. BUT, I have remedied that now, and picked up a 4 pack of Scratch 417 and a 4 pack of Scratch 415 (the two available scratches yesterday).

Their curbside to go was extremely simple, straight forward and easy. Sign onto their website, order what you want, the amount, etc, and even place the tip in their ordering cart. Wait for your notification e-mails, and you would get follow up e-mails and / or texts alerting you when the stuff was ready (super quick for just four packs). They recommended waiting thirty minutes from the time you order, and let you pick that as a pickup time, but I got e-mails within five minutes saying my stuff was ready. From there its still super simple, drive to the location, park in front of the building (in the handicap spots right outside their doors). Each spot has a number, you bring up their website at Troegs – Pickup, put where you are (what spot number), and if you are getting beer, food, or a combination. Select if you want it put into your vehicle, or just left outside. And soon a delivery guy (or gal) will come out, drop off the product, you flash them your driver’s license or ID and once you’re clear, everything is good to go.

Its super simple, and I can’t recommend it enough. To be honest, I have had zero issues from any of the places I have stopped at for beer. I have mostly gotten beer from Tattered Flag, Boneshire Brew Works, Ever Grain Brewing, and Pizza Boy during this ordeal. I have had zero issues with any of them. I also stopped at Twisted Bine yesterday (had to go back out to Ming’s place in Mount Joy to pick up my wallet since I left it in his car after Wednesday’s excursion to Ephrata). They were simple and pleasant as well. Wednesday, we were at St. Boniface and that was also quick and easy. I have also been to Four Score Beerco and that has also been easy and pleasant. So, like I’ve said, the breweries and independent distilleries (like Tattered Flag) have all been wonderful and fantastic during this ordeal. And gladly, Troegs was no exception. My friend J. Miller even said he’s been doing curbside to-go from Troegs weekly / near weekly, and they seem to have been doing a steady business when I was there.

Now starting today, June 5th, many breweries are offering outdoor seating available. At midnight Pizza Boy re-opened for outdoor seating. Today at noon, Boneshire Brew Works is opening their outdoor seating as well. I would have loved to have stopped out at midnight at Pizza Boy to see how it went, but unfortunately with already having started drinking yesterday, and watching my friends D. Scott and Esty do their Knights of Nostalgia video, it got late enough and I was tired enough that it was just not gonna happen. Definitely check that page out, as Drew (D. Scott) has been doing some great live-streams of old video games, and I’m even featured on a few, as well as other friends like R. Dibeler, Esty, etc.

Speaking of those guys, we will be doing a new podcast soon (finally, I know), which will be about time travel. So make sure to be on the lookout for that, you can catch our podcasts at: So a Mexican and a Scot Walk Into a Bar… I always make sure to talk craft beer while we also discuss whatever pop culture we are doing on that video. Always a good time.

Getting back to beer, I had originally wanted to grab the Troegs Scratch beer that supported essential workers and hospitality and hospital staff. I believe it was Scratch 413. For some reason on Untappd none of the scratches say so in their descriptions, and a Google Search didn’t turn up any definitive answers. But I did get two news articles on it: Troegs Next Scratch Beer Will Benefit Hospitality Workers and Newsbreak – Troegs Next Beer To Help Out. I had originally tried to get this to do a review, and discuss how they are helping out their community, but sadly, it was not to be. But still, I wanted to point out how they did make a beer to benefit and help out their community. So let it be known, I have said it, and stated it, and pointed it out.

Now, with all this out of the way, lets get to the actual beer review!

Beer: Scratch 417 – Orange – Lemon Peel IPA
Brewery: Troegs Independent Brewing
Style: IPA – Imperial / Double
ABV: 8%
IBU: None Listed
Untappd Description: Our Scratch brewers are at it again, this time working toward a new beer for our lineup. Scratch #417 is built on a base of pilsner malt, Munich malt and oats and fermented with HotHead Kveik yeast. The honey, orange peel and lemon peel notes of the yeast are amplified by the Lotus, Simcoe and Mandarina Bavaria hops. Additions of lemon peel and orange peel complete the recipe and deliver a refreshingly soft and citrusy IPA with low bitterness. We taste: refreshing citrus, orange and lemon rind, hint of hone.

From appearance, to aroma, to taste, this is very orange. My Untappd check-in for this beer was simple, and direct, if not a bit dirty: “if hops, oranges, and lemons had a three way – this would be their baby”. (Now, once you get the image out of your head, and have a sip of this, you’ll probably agree). (…Ok, take another sip to try and get the image out of your head… oh crap, its stuck in there isn’t it? Oh well, sorry… Happy Friday!)

Lets start off with the appearance, this looks a bit hazy, but not truly fully hazy like some of those recent scratch offerings (that I didn’t get to try, but have only seen, cue crying). This is very bright and very orange. It had a wonderful light foamy head when poured from the can, and it left a little lacing, not much, but some. The bubbles on top were dispersed and random. It was not transparent or see through, and no sediment or floaters, just a bright orange beer, even glowing somewhat when the light hit it.

Once again, aroma is just like appearance, orange. Keyword – orange. Orange smell, orange appearance, orange hue, orange taste. Pretty much the word orange can just sum up this entire thing. But you do get notes of citrus forward hops, and a bit of a zest and lemon nose to this though much fainter with the orange taking precedence. If you are a fan of orange, especially citrusy orange, this is just a wonderful smelling beer.

Taste…. once again, can I lead off with saying… orange? Very heavy orange. Its also not just straight orange, but a varied and interesting orange taste. You have mandarin oranges, regular oranges, some zest to it all, and all kinds of other things kicking around at the same time. There is strong lemon on the back-end, that provides for a great zesty kick. The honey subdues things a bit and makes this soft and easy drinking. There is really zero IPA burn, no hop bitterness, just a juicy, flowing, smooth drink. Thats why this is probably closer to a NE-IPA / NE-DIPA than a regular IPA / DIPA; there is no real west coast style feel to this. Its juicy, its dank, its smooth, no bitterness, not overly sweet, just fruity and smooth and clean drinking. The 8% is super subtle and hidden (honestly didn’t even feel like I got buzzed on just one of these and I couldn’t have guessed what the ABV was until I looked it up now for the review, I would have probably said 5-6.5% if I had to have made a guess while drinking). The hops used in this are: Lotus, Simcoe, and Mandarina Bavaria; which all work wonderfully in conjunction with the other flavors (notably the orange and lemon peel). They are citrus forward hops, and fruity hops, so it really gives this just an outright zesty, citrusy, fruity taste all around with the orange (obviously) taking prominence. The Kveik yeast adds to this as well, and it all just seems to work so strongly together. Everything in conjunction with each other to sum up into a really well, tasty, delicious, and smooth beer. This would be wonderful as a regular. And it will be interesting to see with all of their recent variations of hazy IPAs and DIPAs, where they are going with these; especially with this year’s release of Haze Charmer, a hazy pale ale. Seems Troegs is finally getting on the bandwagon of hazy and juicy IPAs, pale ales, DIPAs, and possibly even TIPAs; moving themselves into the market of New England style IPAs (at last). Should be interesting to see where they go with all of these. The Scratch 413 (that I missed), is labelled as “Hazy IPA #5” on Untappd, and this being the next IPA they released, it is also juicy and New England styled and a bit hazy (albeit nothing like a true New England Hazy IPA). Either way, I’m looking forward to seeing what their future offerings have in store; especially as we start moving back to where we can enjoy beers again at the brewery. I personally can’t wait!

My Untappd Rating: ****
Global Untappd Rating: 3.85 (as of 6.5.20; interestingly, when I first opened the Untappd page for the beer review at 9AM, it didn’t have a global rating since there wasn’t enough data, but when I refreshed it at 10:10AM, it listed the global average, so the site / app must have updated itself sometime in that time frame).

Looking for other Troegs Brewing beer reviews here on The Beer Thrillers? Check these out:
* Fuzzy Nudge
* Coco-Nator: Scratch 375
* Haze Charmer
* Scratch 400
* Scratch 394
* Scratch 395
* Mad Elf
* Scratch 396
* Fresh Fest
* Trail Day Pale Ale
* Scratch 385
* Scratch 386
* Scratch 382
* Dear Peter
* Scratch 383
* Naked Elf
* Scratch 376
* Scratch 377
* Scratch 378
* Scratch 379

You can also check out our IPA list article: Hoppy Easter – IPAs from The Beer Thrillers.

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Soon we’ll all be in Green Phase, and soon after that we will be out of this and out drinking and hanging out, just like ‘the old times’. I do have a bit of sad news, that I saw this while just about finishing up this article – Lititz Brewfest has announced that they are cancelling the Lititz Brewfest for 2020; which is incredibly disheartening, as its one of my absolute favorite brewfests. So, this probably doesn’t bode well for the AC Brewfest which was looking at possibly happening in August, as well as the Prototype Invitational – also scheduled for August, and the Mount Hope RenFaire Brewfest which I believe was eyeing up September. But who knows, fingers crossed. Still also holding out hope for Ffej of July 2020, (Ffej of July 18), which is scheduled for July 11th. Fingers, toes, eyes and… nose… crossed.

Cheers everyone, be careful and safe out there. Don’t get lax just because we can drink outside together (somewhat) again. In due time we will all be able to go about like before. Just hang in there!

Cheers!

-B. Kline