Seeking Information/Advice

[TheCEOandPresident]

Living in Chicago and coming from Wisconsin(the beer capitol of this nation) I have had an interest in the beer/alcohol industry. And after recently coming back from LaCrosse,Wisconsin where they have a brand of beer that is brewed in LaCrosse. The idea crossed my mind of distilling or brewing vodka or beer. Like I said it's just an idea and I haven't done much research yet, but I was wondering if anyone here had any information or advice on this topic. I would highly appreciate any and all help. Just need to be steered in the right direction. Thanks in advance.

[PhilFreecash]

I have thought the same thing. If you really have a passion for something like that then do it. I really don't know much about the industry, but I think vodka would be easier and more profitable.

[jasaunders]

Both markets are saturated more than you can even imagine. If you really have a passion for beer, there are many resources you can utilize. The first would be to learn your stuff. Become a member of beeradvocate, subscribe to beer magazines, join homebrew associations, and attend beer tasting events. Madison has one of the best events worldwide, called Taste of the Midwest that takes place every August, however it is extremely difficult to get tickets if you didn't already get them when they went on sale. (my tickets may be for sale because I just found out I have a wedding that day, although I'm going to try to attend both).

If you have a passion for beer, there are hundreds of successful microbrews across the country, but don't expect to become the next Anheuser-Busch. Many of the brewmasters do it just for their love of the industry and not to get rich. A microbrew brand can also be moderately successful becomes it relies on a local distribution model, whereas vodka would require national distribution deals, which would be very hard to secure.

[gregdavidson]

I think you should create something unique like a sweet beer for the kids.

[warrensway]

... too much start up capital probably for you to succeed with the major players in the game unless you are one of the best marketers or come up with a great product

[TheCEOandPresident]

Jasaunders thanks a bunch.

[TheCEOandPresident]

Does anybody know any great reads about the subject? or any websites or forums that can be advantageous to brewing and distilling? I would really like to brew and distill and I would target local grocery stores, pubs, taverns,etc. in one city and seeing if it is a success before I would even think of going nation wide. Is that a likely goal?

[TheCEOandPresident]

P.S. Does anybody know anything about Vodka pills and how to distribute them legally(keyword)? lol

[TheCEOandPresident]

Anybody have anything else for advice? information? I'm REALLY hoping someone will be helpful in my search.

[shmoeusn]

Being a beer lover and homebrewer myself, I've researched this quite a bit.

First I'd reccomend forgetting about vodka. Anything that has to be distilled rather than just fermented involves a ton a legal mumbo jumbo. You have to have a numerous permits, and the government is heavily involved in your business. You actually have to sell your product to the government and then purchase it back with sin taxes added before you can sell and distribute it. It's nowhere near profitable unless your on at least a national level of distribution.

As for beer, it's a very fun and addicted hobby. I'd personally love to do it for a living. If you would like to get involved, buy a homebrew kit, and start of with an extract brew. You can get started for around $125. This will get you five gallons of beer (just over 2 cases) and after that, it will cost you about $35 per 2 cases. If you have any questions let me know, I'd love to help.

You can also check out HomeBrewTalk.com - Beer, Wine, Mead, & Cider Brewing Discussion Community. and find a ton of great info.

[TheCEOandPresident]

Thanks for your help. I actually was wondering what's the process to distribute beer and/or vodka? I think Vodka is doable and it's all about a challenge with me so it's attractive to me to try and overcome obstacles to have a successful vodka or beer.

[jasaunders]

What would your strategy be to overcome the intense monopolistic and duopolistic competition of beer and alcohol distributors nationwide?

[TheCEOandPresident]

That's a GREAT question and I honestly can't give you one definitive answer. But being in Chicago I feel like starting out with local bars liquor stores and possibly small chain grocery stores just to build an impeccable reputation with exceptional feedback(hopefully) before even thinking about any other place outside of the city or the state of Illinois. That was a good question that I pondered over for a while. What is your input? Or anybody else for that matter. Any help is good help. Any other questions? I need them and i would highly appreciate them. Thank you.

[jasaunders]

I'm getting sleepy now after a long day, so I'll reserve some more input for tomorrow, but the problem is that distributors already exist in all markets nationwide. And these distributors already have exclusive agreements with liquor companies to distribute their products.

I worked very closely with Wisconsin Distributors a few years back, which is the Anhauser-Busch and a million other beverages distributor for southern Wisconsin. They have a monopoly on 65% of all alcohol products. The other 35% of products are all monopolized by Frank Liquors, which distributes MillerSAB products among others. That's usually how its broken up in the industry, one company distributes Miller products and another Bud products, and they both carry a wide assortment of other products, from Bacardi Silver to Sapporo.

So you will have to come up with a market penetration strategy. I'm not saying it can't be done, but it will be difficult, because you will have to break or wait out exclusivity contracts from major industry players and give them a reason to come your way.

[TheCEOandPresident]

Hmmm I appreciate the advice. I didn't know if in your example were you just talking about nationally or not. But i'm more geared towards locally and make a name for my alcohol and like you said give the bigger distributors to have a reason to come my way. I feel like flawless marketing is imperative to being successful in this business so I'm eager to learn any and everything that's beneficial to that aim. You seem to have learned a ton working with Wisconsin distributors and I can't thank you enough for the advice you've already given me. You said at the beginning of your comment that you had more to say about the topic. I would enjoy hearing whatever information that you are willing to share if you don't mind. And anybody else who has anything they'd like to share I welcome it b/c I'm determined to learn as much as I can on the subject. Thank you in advance.