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Riemann-Americus was founded in 2003 as a business unit of the development company IAVO. R-A remains a wholly owned division of the parent company.
In 2003, R-A founded, established, and trademarked the label “Americus”, and today holds the US rights to “Americus Beer” as well as the phrase, “Beer for a New World”.
The R-A philosophy on the beer industry is rather simple and based on the following:
- The public generally loves beer;
- Tastes and preferences continue to evolve, with heavy emphasis on ales and more complex beers (and away from the simple lagers that dominated the US markets for decades);
- There are, and likely always will be, elements of nostalgia associated with the industry;
- Beer remains rather inexpensive to produce; and
- The craft brewing industry is vital to the continued evolution of the market profile.
These points are generally positive and reflect the highlights of beer. There are underlying factors, however, that equate to contrasting shots of reality. Such as:
- The market supply vs. demand remains significantly unbalanced, resulting in fragmentation and weakness in portions of the craft segment (the condition extends with the accelerating continued introduction of new labels);
- The fragmentation, though perhaps good for consumer choice short-term, creates great challenges for establishing consumer loyalty;
- There remain government and social elements that are unfriendly to the industry;
- The financial situation for a growing number of craft brewers remains tentative and soft;
- It is generally not predictable whether the nostalgia market will expand or contract as consumers’ tastes and trends go forward; and
- While the cost of making beer is relatively low, costs of marketing and delivery are becoming prohibitive in a growing number of instances.
These positive and negative points collectively suggest there are business opportunities now emerging that are consistent with the natural forces of business cycles; but they are limited and must be strategically considered. Specific points of interest include the acquisition and consolidation of particular segments. R-A, therefore, is involved in such activities, with objectives being to improve select stressed or undervalued businesses, improve them, and resell the resultant reformulated company once it/they have been successfully repositioned.
If you own a brewing or related support business and desire to explore an equity relationship with R-A, please contact us for further information.
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