Harvest Strategy in the Beer Business; Daily Beer Distro for Thursday November 8, 2018

I learned about harvest strategy years ago from stories about a man by the name of Paul Kalmanovitz.

Through his holding company S&P, Kalmanovitz bought many of the old-line regional brewers that had financial difficulties during the 50’s, 60’s and 70’s including Pearl, Pabst, Olympia, General and Falstaff.

He would purchase a faltering brewery through leveraged buy-out, then overnight slash all the budgets and overhead to zero. Any cash flow generated by the acquired brewery was stockpiled and not reinvested back into the company.

Kalmanovitz shut down inefficient plants, closed marketing and advertising departments, fired all but the essential technical staff, raided pension plans, and cut prices to appeal to price conscious customers.

The Harvest Strategy Works For A Short Time

This strategy may work short term in the beer business. Larger regional beer brands, in the old days at least, had a tendency to live for a little while without advertising or marketing life support.

But, it only postponed the inevitable. Sooner or later, and one by one, the acquired breweries would have to shut down. Any remaining production would be shifted to another plant with capacity.

Then, once each of the closed brewery’s were shuttered, everything was stripped out – brewing kettles, machinery, canning and bottling lines, all of it – and sold off to China.

In fact, production equipment from three Pabst breweries including the original brewery in Milwaukee was sent to China back in the 1990s under a licensing agreement between S&P and the Zhaoqing Brewery to brew and sell Pabst Blue Ribbon.

And finally, once everything was dismantled and demolished, the real estate was auctioned off to the highest bidder.

A Brewery in Name Only

Kalmanovitz’s actions are part of the reason Pabst no longer brews its own beer. Pabst is a brewer by name only. It’s why we call Pabst a virtual brewer these days. MillerCoors, City Brewing and whoever else with capacity brew Pabst brands on a contract basis.

If you want to learn more about Mr. Paul, I urge you read The Family Jewels by George Cothran at SFWeekly.com. It’s about his life, legacy and the drama surrounding his estate. His story could’ve easily been made into a movie.

Expiring Beer, Wine and Spirits Industry Domain Names for Thursday November 8, 2018

For the second part of my daily post, I feature my curated list of today’s expiring domain names. I research each of the domain name aftermarkets and go through the drop lists to find the best available domain names for beer, wine and spirits companies.

These domain names are perfect branding opportunities for breweries, wineries, distillers, distributors, retailers, vendors, etc., even cannabis companies. You never know, your company’s exact match domain name may be on the list. You can acquire premium domains, often at a huge discount, in the aftermarket.

The domains below are expiring today, if you have any questions about a domain name feel free to contact Andy here. I can help you acquire it.

Beer Distro Domain of the Day: BeerMemorabilia.com – I know it’s called breweriana, but still a killer domain for those that buy and sell old brewery stuff.

HandEagle.com – New name for the Chicagoland Budweiser distributorship.

HackerPschorr.com – The brewery uses the hyphenated version – Hacker-Pschorr.com. You would be amazed how many people leave the hyphen off when sending an email.

Olanda.com – They make a lot of export beer over there.

RapidLift.com – Great name for a forklift brand.

SuzyQ.com – Lots of beers named Suzy Q. Great brandable domain.

MonsterSales.com – I like this name for a beverage wholesaler. Only problem is the energy drink, could be confusing.

QueenOfCorona.com – I’m not talking Rosie here. I’m talking Miss Modelo.

BrandSeller.com – Good marketing email and domain for a beer, wine or spirits executive.

Truthsayer.com – It’s a word, someone who speaks the truth. Great brandable for a business.

BerryRepublic.com – I see wine all over this domain.

WineryAuctions.com – Wine isn’t the only thing auctioned off. Think about what happens when wineries close or get bought out.

OakenKeg.com – Perfect brandable name for a business. Short and memorable.

1Nation.com – I would love this domain if I had OneNation.com to go with it.

Monferrina.com – This domain sounds like the name of a winery.

Gueux.com – Commune in Champagne region of NE France.

LeTimbre.com – The name of an Australian winery.

Meadz.com – Is it Autumnal? I don’t too much care for domain names that replace the “s” for a “z”. They’re confusing.

Hinderberger.com – If it’s not the name of a beer already, it should be.

Communityland.com – Nice name for a local minded beer wholesaler or brewery.

LeafMaster.com – Cannabis name all the way.

HerbalDistribution.com – Another nice cannabis or herbal medicine name for a canna distributor.

Hope you have a great selling day today. Yesterday I wrote about the 2018 iPourIt Beer Report and spoke with a few of the people that work there. Nice folks with an impressive business model. I can’t wait to get my hands on some the data these guys are capturing!

See you tomorrow,
Andy

Leave a Comment

Your email address will not be published. Required fields are marked *