Big brands like Coke, Budweiser, and FritoLay are seriously vulnerable to locally-made craft competitors. I think that there are big opportunities to take market share and then either hold it or sell a craft brand you’ve built on to big firms for large amounts of money. This Brain Boost is all about these big opportunities for smart, locally-focused, craft entrepreneurs.
The Craft Beer Takeover
In 2006, around 8m barrels of craft beer was shipped in the US. A decade later, in 2016, nearly 24m barrels of craft beer was made–nearly triple in just 10 years. Meanwhile–who was losing out? It was Budweiser. During the same period, Budweiser’s US shipments halved. That’s why AB InBev, Budweiser’s Europe-based parent company, has bought 10 American craft brewers in the last 10 years.What we’re seeing in beer makes sense to replicate in many other product categories: a locally-made, craft production takeover.
Craft Producers Have a Sustainable Advantage: Authenticity
Stanford MBA professor Glenn Carroll recently ran a massive survey which found that what drives sales in advanced economies like those in Europe, Australia, and the US is authenticity. He said “consumers are buying on the basis of their interpretation of the product and its story.” Craft products will always have a better story than industrial products because people want to feel a connection to the creators of a product.
Many Sectors with Opportunities
There are so many vulnerable product categories that it’s basically a menu for local teams ready to capture market share in their cities. Sodas and sparkling water is the fastest growing category and others include beer, liquor, and cider, snack foods, healthy packaged foods, dishware and ceramics and many more.
Our staff here at Eazl would be interested in helping your team take market share with locally-made products. Reach out to us any time at firstname.lastname@example.org–let’s talk!
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