Not too long ago if you were looking for new small business opportunities, beer would have been about the last industry you would consider. It would have been foolish to take on the brewing giants. As recently as 2009, just two companies — Anheuser-Busch InBev and Miller Coors — accounted for 78.4 percent market share in the U.S.
Anyone who has been in a bar or restaurant lately can tell you how much that has changed. It’s now common to see long rows of beer taps numbering in the dozens and beer lists that are pages long. Where do all those cans, bottles and kegs come from? In 1983, there were 49 breweries in the U.S., according to the National Beer Wholesalers Association. In 2016, there were 7,190 permitted breweries — an all-time high.
All of those new breweries — mostly small, and mostly local or regional — are taking a sip from the big guys’ sales. Budweiser shipped 16 million barrels of beer in 2013, down from 30 million barrels in 2003. Craft beer, meanwhile, now owns 12.3 percent market share by volume, up from 4.3 percent in 2009. You can bet Anheuser-Busch didn’t see that coming.
So what happened? Notably, there wasn’t one new brewery that set out to take on Budweiser. That would have been foolish, remember? But 7,190 breweries — that’s another story. That’s the power of small business. We can’t all be Google, General Motors or Walmart — most of us don’t set out to be — but we can make a big impact by focusing on what makes us unique in our own markets.
Know Your Niche
There was a time when everyone in America was happy to drink the same beer. That time is gone. There are now so many options available for every conceivable product and service, nearly every sector has switched from a mass consumption model to mass personalization. Simply put, consumers have almost unlimited choice to customize everything they buy.
What’s your niche? What characteristics make your business unique — and, more importantly, what qualities appeal to your customers? If you don’t know, ask. Find ways to survey your customers using social media, email, and free online survey tools, then focus on the things your customers tell you are most important.
Keep It Local
While some of those 7,190 breweries have grown into regional players, very few have national distribution. Most craft beer makers operate locally — some even at the neighborhood level. Choosing a beer that is locally made matters to 52 percent of craft beer drinkers, according to a Nielsen survey, and that has increased in importance from just a few years ago.
Of course, shopping local appeals to consumers in lots of sectors these days. Your business can take advantage of that trend, too. Become involved in your chamber of commerce or neighborhood business association. Network with other owners and find ways to promote the importance of supporting local business. Above all, take every opportunity to remind customers that you are a member of their community — and you understand their needs better than any out-of-town corporation.
Keep It Real
Authenticity is the other side of the local coin. When your customers choose to work with a local business, it also means they get to work with you, the owner. Make sure that telling your story is part of your company’s marketing plan; feature an article about your personal background on your website, and use social media to build a genuine connection with your loyal customers.
Most of us aren’t lucky enough to be in the beer business, but we can take a lesson from craft brewers’ success. Use your size to your advantage. Focus on what you know best — your niche in your local market. You don’t have to take on the big guys alone. There are millions of other small business owners right there beside you.
The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.