Challenge

Have you ordered a craft beer lately? Are you looking for a brew from a small independently owned brewery? Although beer industry growth appears stagnant, the craft beer segment is heating up to the tune of 13% in growth volume in 2011. This growth took place while overall U.S. beer sales were down an estimated 1.3% by volume. Even though craft brews account for less than 6% of all beer sales, they play a big part in the future of the beer-making industry. With its distinct markets, however, it can be hard to tell what the value is of craft brewer equipment. When a brewhouse was purchased by a craft beer brewer, it needed to better measure and understand the value of this asset.

Solution

In January 2013, the craft brewer engaged Liquidity Services. Its team of experts employed extensive research techniques — engaging used equipment dealers and domestic buyers from its large database of contacts — to provide a comprehensive view of the buyer market for a brewhouse and the asset’s value.

Results

Thanks to the Liquidity Services valuation, the new owner of the brewhouse was given a better understanding and measurement of the asset’s actual market value. The brewhouse had been shipped to the U.S. from Germany and the owner was able to discover from Liquidity Services that its new location in California had actually increased its value. The replacement of such a facility with its malt handling equipment, brewhouse equipment, filtration system, bottle filling line, and keg filling line would have actually been cost-extensive. The Liquidity Services team was able to determine that the values on this equipment were trending upward and for that reason, ranked it as ‘High’. With the information provided by the valuation, the brewhouse has become a valued piece of the craft brewer’s business.

In less than a month, the craft brewery was able to obtain an accurate assessment of the value of the brewhouse it had purchased and shipped from Germany, allowing the company to make better decisions about the asset.