US craft beers have become increasingly popular abroad. Unfortunately, exports have not been able to match the growing demand.

High transportation costs and the risks of transporting a perishable product over long distances have deterred some brewers from exporting. Although some brewers have partnered with overseas beer makers and bottlers to expand rapidly, others have preferred to take a slower, careful approach to market share growth.

This post is based on the PRI.org article, Europeans are embracing American craft beer. So, why are exports trailing off?, by J. Margolis, February 15, 2018. Image source: nuamoid / 123RF.

Discussion Questions

1. Price, delivery reliability, delivery speed, quality, and flexibility can be order winners or qualifiers. For New Belgium, which characteristics are order winners and qualifiers? Why?

Guidance: Superior quality is definitely an order winner because overseas beer drinkers like the hoppy taste of US craft brews. Price is a qualifier; the high cost of shipping the beer overseas makes it difficult to beat the local competition on the basis of price. Delivery reliability is a qualifier; customers will cease to do business with suppliers who cannot deliver on time. Flexibility is a qualifier; brewers must provide the variety Continue reading →