Quarantine Conversation Series: A Chat with Richard Greene, Executive Director of NC Brewer’s Guild
If this interview would’ve happened six months ago, we’d be talking about hard cider and kombucha. Instead, here we are talking about the state of the craft brewing industry in the midst of a global pandemic.
Richard Greene is the executive director of the NC Brewer’s Guild whose mission is to position North Carolina as a leader among the best craft beer states in the nation. Greene’s job is three-fold: to promote the industry; be an advocate for craft breweries and provide education about our industry.
Where does a crisis like the coronavirus fit into NCBG’s advocacy plan? Well, crisis’s like this you simply don’t plan for, but you do lean on emergency preparedness and a clear honest voice of what’s happening. That’s exactly what we’ve seen from Greene and the organization that brewers in this state look to as a guidepost.
What advice do you have for all breweries, large and small and those like us just getting started, during this time of the Coronavirus crisis?
My advice to all is the same. The goal is to be able to look at your business objectively, and step outside of your emotions right now. Make sure you’ve developed a “thinking platform.” What I mean by “thinking platform” is to build a group of trusted people who will give you honest and fair feedback. They call BS when ideas are unicorn-like and they encourage you to explore ideas that are sound. You have to have that group of people. Even more important -- listen to them. That’s the biggest shortfall I’ve seen from entrepreneurs.
Do you foresee any long-term implications for the brewing industry in North Carolina after the pandemic is in our rear-view mirror?
Absolutely. During the first month or two after we get to reopen, it will slowly ramp up maybe in the 50% range of normal, but I do expect to see our industry recover. Maybe 75-80 percent of where we were the prior year. I believe while there will be pent up demand, there will still be nervousness for the next year. This is a conservative view, but when you develop your strategic plans and tactics it is best to plan for the worse and hope for the best.
Businesses will have to gear-up for a new future based on what their consumers want. Focus on the quality of your product, listen to your customers and serve them. For example, consumers may want to see a lower capacity in your taprooms, creating more space between tables. The scar that your customers have will take time to heal.
There will be many opportunities, as we come out of this mess. You have to understand what they are within the present reality and foreseeable future. Will the craft brewing industry look different than it was? You bet. The winners will learn to adjust and adapt so their businesses can grow.
How would you summarize the resilience of the craft beer industry?
Everyone is in a different spot depending on: when you entered market; how deeply capitalized you are; whether you have a distribution model, a brew pub model or a taproom model. All of these models have pluses and minus that have changed over the years.
Relative to the industry in general, health crisis aside, the industry has continued to see growth and new opportunities.
There are two questions that resilience hangs on:
1. Resilience in terms of listening to your customers. Can you adapt to what they want?
2. Do you have financial strength and capital when models change?
Resilience for some might be asking your banker for loan, closing for a time period, or how to start canning. Go back to your “thinking group,” planning is not “one and done” it is a constant process of evaluation. Those who do this well will find a path forward.
What measures have you taken to ensure lines of communication are open where "essential business" legislature is concerned?
The guild is an advocacy group and our work is done at the state and local level. Since we operate within 3 tier system: retail, supplier, wholesale. We work closely with our retail and wholesale trade organizations, as well as regulators and legislators to develop policies the help our industry. Overall, we’ve been pretty successful as North Carolina has some of the more liberal alcohol laws in the south.
What are some of the creative solutions you've seen in dealing with the "new way" of doing business?
There may be different ways to sell beer, but not new ways (because of our regulations). The importance is building a revenue stream to support the base of your operations. People are operating now with 25% of what they have seen their revenues. It’s all about survival right now.
Do you have a personal story you'd like to share to spread positivity...
In business and life and anything you do; you have to stay rooted in the present. I find the way to deal with challenges is to remember gratitude. It’s easy to focus on what might have been or should have or could have throughout this process. What’s important right now is to slow down, stay centered and alert to the situation. Take your best shot at fixing what you can control and execute your plan. Measure the results and adapt. Successful people in business do this with humility and make it a learning experience to grow from. COVID-19 is testing everybody. If you can approach with calm and do your best, then win, lose or draw, you’ll be able to sleep. That is success.