In Florida, craft beer has completely dominated the marketplace and it’s literally impossible to find a restaurant menu without something from a local brewery. If I rewind back to my college years, there was no option besides Budweiser, Miller Light, or maybe Coors when it came to ordering a beer.
What has occurred over the past decade has been nothing short but amazing. Within about 10 years, craft breweries have popped up all across America and consumed a serious chunk out of the market share of the goliaths (Anheuser-Busch, MillerCoors, Heineken, Pabst, and Diageo, which owns Guinness).
Craft beer went from being a hobby in the mid-90’s to one of the hottest markets shortly after 2012. And with this revolution, came ancillary benefits in job creation for towns across America.
According to Bart Watson, chief economist at the Brewers Association, “We’ve seen three main markers in the rise of craft beer—fuller flavor, greater variety, and more intense support for local businesses.”
Instead of heading down to your local chain restaurant, this “craft” movement has been picking up steam. From craft restaurants to craft cocktails, everyone is chasing after the concept of locally sourced and created themes.
So, what does this have to do with financial advisors?
In my job, I am lucky enough to be able to speak with advisors from all across the country. From insurance experts to asset managers, estate planners to small business experts, everyone has started facing the trends of fee compression, automation, and artificial intelligence. A large portion of the advisors I speak with see these as threats and think the profession is dead in just a few years.
But I tend to look at the financial advice industry a lot like craft beer. The beauty of craft beer is that some entrepreneur, deeply embedded in the local culture, understands the tastes, interests, and feelings of their community. Most of these breweries are now central hubs of their towns and provide a valuable gathering place for community members. The beers, all
Financial advice is exactly the same. The same way American Express incentivizes “shopping local”, investors prefer to “invest local”. We see small micro-networks of clients, attorneys, accountants and advisors, working together to share this craft advice. Yes, the ideas may be nationwide or even global, but it’s no different than a brewery getting a seed investment from Sam Adams or Anheiser-Busch.