Overview

A brewery that makes beer that individual stores or bars can put their own logo and brand on.  Similar to store brand soda, but for beer.  By allowing for custom logos the individual bar or store will be able to further promote themselves.  Creating their own beer will make them look like a larger operation as well.  All of this can be accomplished without them having to invest any money in brewery equipment or personnel.  The brewery makes money by collecting businesses that are themselves invested in purchasing beer from them.

In Practice

A bar for example might want to add their own beer in order to increase their image.  They would work with the brewery in finding a beer recipe that they are happy with, and that they feel would be a great fit for their customers.  With an easy switch at the brewery, their recipe and label would be used for that batch of beer.  Kegs would only need a new tap for them to be able to use.  The customers wouldn’t have much of an idea that the bar wasn’t making the beer themselves.

By not taking credit, and allowing the individual clients market their beer; the brewery can develop a loyal following of customers.  They will also not have to invest in a large marketing/advertising budget to compete with the large breweries.  All they would need is a sales team that works with the individual locations.  Once the account is set up, minimum maintenance would be needed to keep the account since they would have the incentive to market their own “brand” of beer.

Additional Thoughts

As Ronald Reagan once said:

There is no limit to the amount of good you can do if you don’t care who gets the credit

By not focusing the product around yourself, you can take advantage of a business model that has been around for years.  Allowing the customer to be the focus and enjoy the spotlight, they will become the biggest advocate of your product.

A company could also take advantage of this business model by acting as a middleman between existing breweries and bars or stores.

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