Investing In Craft Beer Company’s
The emergence of craft beer has seen more and more people have an interest in investing in these companies. One such big company is the Brewdog. This is one big company and one worth investing. As a shareholder using a trading platform, you get to enjoy many benefits ranging from discounts, annual invites for you and your friends, online discounts, and many other more benefits.
Craft beer companies have risen from zero to hero. The truth about this trend is technology which has played a major role in marketing the brands in a broad market. Last year alone saw more beer bought in online shops than in bars and restaurants. This has seen more pubs shutting down, but more breweries are coming up. This shows there is still market for this brands only that this time, it is through other platforms rather than the usual bars and restaurants.
Craft beer is certainly a bubble, meaning the best will be absorbed by the multinational companies while the rest will just vanish just like they emerged. It is very hard to build a brand, especially while competing with mega breweries. The branding is also another challenge, and sooner the brand names will not have a lasting appeal. This is why many multinational companies spend so much in purchasing other brands. It would be easy creating a new brand and adding them to their existing ones. Having said that, it is worth investing in UK craft beer companies. This is because there is a high potential of the craft beer rising becoming a top brand and therefore the returns will be high.
With a large business, there is the potential of better economies. This strategy will generate high returns through capitals due to the increased profits emerging from the craft beers. It will also create a greater market share, and this will assist in the protection of the business from any external risks. Craft beer industry is also a venture that has risen steadily in the 21st century and therefore contributes a lot to the economy.
Craft beer breweries also have an added advantage as compared to many other breweries. There are more than 200 new breweries that are coming up every year in the UK. This is because these small breweries have a relief scheme that reduces their tax rates since they produce low volumes. Therefore if they manage to sell their brands at a high profit, and pay low taxes, their profit margin will be high as compared to the multinational brewers who pay heavier tax rates.
Another thing to put into consideration is the start up cost. These craft beer breweries require a small amount to set up and have the business running as compared to big breweries which must have enough big space as well as heavy machines and equipment to set up breweries. The cost of running the brewery is also small since less labor is required. The only disadvantage these craft beer companies face is many remain to be small enterprises and any effort to boost competition fails since they have to compete in mega breweries which have been on the market for long and which know the rules of the game better than the craft beer breweries.
The UK economy does not seem too bad, and there is a chance it can still sustain many breweries. Many craft beer manufacturers are increasing their staff and stock as more demand rises. This is a good indicator that the business is worth venturing. The only thing that one requires is to have is marketing skills that will ensure his products are distributed widely and consumed in larger volumes. To achieve this, the brand must be appealing and self-fulfilling.
Another factor that makes it worth to invest in Craft Beer Company is that craft beer makes up to 15% in beer industries. Many people find the taste of that beer more appealing and for visitors and tourists, there is that urge to discover what craft beer is since it may not be common in their countries. This makes craft beer more expensive compared to other brands, and since more people want to have a taste of craft beer, they are always willing to pay more. Therefore the venture is worth investing.
