As 2020 rounds the corner, we take a look back at the top 5 issues of 2019 that came our way from the brewing industry this year. The below list represents about 6% (our direct reach) of the U.S. craft brewing industry, so extrapolating to the whole should be done with caution. However, we think it can be safe assume that most breweries encounter at least one of these issues throughout any given year.

Top 5 Disputes in Brewing for 2019:

Management/Partner/Investor Disputes
Probably shared with many other industries, but tension among business partners, managers, and investors ranks first in 2019 (just like 2018 and 2017 when we started keeping track). Such tensions and disputes affect production, workflow, capital support, and overall function. It should be no surprise, then, that #2 is affected by the top spot.
Team/Staff Tension
Not every issue with staff can be traced back or linked to management disputes, but many can. If the top is dysfunctional, then expect the middle and lower levels to reflect this dysfunction. Combine this with another route to tension: A team is a collection of unique (diverse and different) individuals brought together to achieve a common goal. Communication, trust, and understanding are critical to this mission. Often, these are lacking, or at least not effectively achieved, resulting in decreased production and an increase in turnover.
Consumer Relations Issues
Again, we can see correlation with the previous two. Dissatisfaction among the staff can seep into the consumer pool. This is mostly evident via social media and online reviews. Handling of complaints and criticism requires certain skills and a degree of patience, and possible politics.
Contractual Conflict
Terms in contracts are almost always disputed to some degree in any industry. For breweries, it seems the contractual terms disputed most often reside in distribution contracts, followed by leases. While contracts themselves are rarely re-worked, the terms can be clarified or adjusted in some cases. Some contracts have arbitration or mediation clauses, which is a great idea.
Government Disputes
Usually local disagreements in zoning, water management, waste, access, etc.

We estimate that the average cost for each issue can cost a brewery approximately $83,000*. Most of this average is tied up in the first 3 since they are rooted internally, although navigating zoning/inspection issues can incur obvious delays in operations. Unfortunately, internal costs are not so obvious or considered by breweries when tensions materialize. No one thing costs $83,000, but many little things add up; turnover, training, legal fees, lost production, lost/stolen time, gossip, sabotage, tardiness, quality control, all play a role in the final figure.

Most of these, and others, are manageable prior to incurring high costs. Disputes with government seem to be unavoidable and least flexible. Some issues are not appropriate for our services and we refer them elsewhere. Yet, our services can reach beyond and behind small business functions like family issues with staff members, or individual dispute assistance. Reducing stress at home decreases the chance of that stress being brought to work and affecting business operations. This is difficult to measure, however, and not included in the above estimate.

*There are many factors that go into this estimate. See www.ovaloptions.com/documents to calculate your costs more accurately. Things like advertising a staff position, training materials, attorney fees, etc. can vary and is reflected on the downloadable document, “Cost of Internal Conflict Calculator in Businesses”.