Small Brewers, Big Advantages

By Rex Moore – Apr 12, 2013 at 1:21PM

NASDAQ: WFM

Whole Foods Market, Inc.

Beating Big Bud at his own game.

With a 15% year-over-year increase in sales, the craft beer industry is experiencing heady growth these days. Meanwhile, the big boys, led by Anheuser-Busch InBev (BUD 1.16%), SABMiller (NASDAQOTH: SBMRY), and Molson Coors (TAP -0.53%) -- are losing market share.

Keeping things in perspective, however, the largest craft brewer is Samuel Adams maker Boston Beer (SAM -1.06%), which has only a 1% market share. On top of that, the small brewers are at a huge disadvantage when it comes to distribution and economies of scale.

So how do they battle against the Big Buds of the world? Our Rex Moore asked that question at the recent 2013 Craft Brewers Conference in Washington, D.C., and found answers that benefit not only craft brewers but all small businesses. In the video below, we hear strategy tips from New Belgium Brewing, Whole Foods Market (WFM), and Port City Brewing.

Rex Moore has no position in any stocks mentioned. The Motley Fool recommends Boston Beer, Molson Coors Brewing Company, and Whole Foods Market. The Motley Fool owns shares of Boston Beer and Whole Foods Market. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.