Yeah, the author didn't quite connect the dots, but the general point was there.
'Craft Brewery economics' are really interesting. The margin on beer sold out of the brewery taproom is insane, 400-600%, largely because they are selling the beer at 'normal' bar prices but don't have to split the profits with middlemen or worry about transportation costs as the beer is made on site. However, if they go through the normal distribution channels in order to sell at grocery stores and other bars, apparently the margins are much closer to 5%-10%. According to some of the industry publications, there has been a bit of a retrenchment going on as a bunch of breweries overextend themselves to try and grab market share through distribution and got stuck selling low margin beer in a really competitive market.
'Craft Brewery economics' are really interesting. The margin on beer sold out of the brewery taproom is insane, 400-600%, largely because they are selling the beer at 'normal' bar prices but don't have to split the profits with middlemen or worry about transportation costs as the beer is made on site. However, if they go through the normal distribution channels in order to sell at grocery stores and other bars, apparently the margins are much closer to 5%-10%. According to some of the industry publications, there has been a bit of a retrenchment going on as a bunch of breweries overextend themselves to try and grab market share through distribution and got stuck selling low margin beer in a really competitive market.