Tuesday, March 5, 2013

Beer Brewer's Seconds

The Idea
Sell large beer brewers' damaged goods at a discount.

Origins
Today at work, I found out that large beer brewers throw out cases of beer if even one bottle in the case breaks. They send the cases to a "damaged goods" area in the distribution center. I thought about Ben and Jerry's Ice Cream and their "factory seconds" store I went to a long time ago. Why not factory seconds for beer, arguably even more popular than ice cream?

How It Works
Buy cases from Anheuser Busch's distribution center and open a small store to re-sell at a markup, unopened. Tell customers, "Buyer beware, sale is final." Clearly communicate that some cases will have minimal damage, but some might be a total waste. Market the environmental impact of using rather than disposing the product, and project a cheeky, "in-the-know" brand image.

Resources Needed
Retail experience, alcoholic beverage license, startup capital enough for store leasehold improvements, agreement from at least one brewery.

Sustainable Competitive Advantage (If Any)
Relationship with the brewery; regulatory restrictions

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