Turnaround Consulting Case Interview: Craft Beer Decline (W/ BCG & EY Consultants)
Why It Matters
Understanding the size and growth dynamics of craft versus non‑alcoholic beer equips brewers to allocate resources toward segments that can offset declining traditional volumes and sustain profitability.
Key Takeaways
- •Craft beer market valued around $33 billion nationally in the U.S.
- •Non‑alcoholic beer market roughly $1.6 billion, growing 22% annually.
- •Dashes Brewery experienced 11% volume drop despite overall industry growth.
- •Analysis framework covers market, customers, competitors, and financial performance.
- •Strategic options include product innovation, channel shifts, or M&A moves.
Summary
The video walks through a mock consulting case in which Dashes Brewery, a top‑10 U.S. craft brewer, faces an 11% decline in volume and a $10 million revenue drop despite a modest 2.9% growth in the overall craft‑beer segment. The CEO has hired the interview team to decide whether to stay the course or pivot the business model amid broader shifts such as Gen Z’s reduced alcohol consumption and a 22% annual surge in non‑alcoholic (NA) beer.
Abby outlines a four‑bucket framework: market sizing, customer deep‑dive, competitive landscape, and financial analysis. She estimates the national craft‑beer market at roughly $33 billion and the NA‑beer market at $1.6 billion, highlighting the stark size difference but also the rapid growth of the latter. The analysis also surfaces that Dashes’ decline is steeper than the industry trend, suggesting company‑specific issues.
Key moments include a live market‑size calculation using Portland bar data, where 300 bars (2% of on‑premise market) translate to a $33 billion craft‑beer TAM and a $1.6 billion NA‑beer TAM after scaling. Abby emphasizes benchmarking against peers on price, SKU count, and margins, and proposes gathering customer surveys to capture shifting preferences toward NA‑beer and alternative beverages.
The takeaway for Dashes—and similar brewers—is to prioritize high‑growth segments, consider product innovation (e.g., NA‑beer lines), explore new distribution channels, or pursue strategic M&A to regain volume. Without data‑driven adjustments, the company risks further erosion in a fragmented market.
Comments
Want to join the conversation?
Loading comments...