Dogfish Head Pulling Out Of TN

I am sure that those of you that belong to online beer communities like Ratebeer and Beer Advocate have already read this, but Dogfish Head is pulling their entire portfolio out of Tennesse. They were at maximum production, and then the Brew Masters TV series created a demand that they can not meet. 14 other states are also on the chopping block. People are already flocking to TN liquor and beer stores and stocking up.

I know that I will miss Squall, Festina Peche, and Palo Santa Marron. As much as I hate seeing a brewery leave Tennesee, that will leave room for others to move in.


Anonymous said...

It won't really open up new options. Breweries have to sign a life-long, unbreakable contract with a single distributor in TN in order to be able to sell here. Because everything must go through this distributor monopoly, very few breweries are willing to sign to TN. Going to TV with maximum production was irresponsible of Dogfish Head, and their business will suffer considerably when they move back into these axed states. Responses to this move appear to range from sullen to outright vitriolic.

Anonymous said...

Been in the craft industry as a brewer/supervisor for 12 years. Many breweries have had to do this as they grow. (Anderson Valley and Bell's to name two) The assumption that their business will suffer upon return to market is totally false. Scarcity creates value. It is a standard business to enter as many markets as possible and to find your strong ones. The markets removed are going to be the weakest, thereby improving availability in stronger markets and increasing profitability by consolidation.