The beer brewing industry is made up of three major segments: large domestics, imports and craft. The post prohibition dominance of conglomerated domestic breweries has since homogenized most of the world’s beer into cold yellow fizz. For decades now, U.S. craft breweries have fought back, reinventing flavorful lagers and ales and steadily educating a consumer base for their products. Although still relatively small, the success of craft brewed beer is beginning to weigh on the other segments, forcing major adjustments in the world of brewing.
All beer is made from four natural ingredients: barley, wheat and/or rye malts, hops, water and yeast. Mega breweries, like Anheuser-Busch, Coors and Labatt supplement the malt portion of their recipes with corn and rice (known as adjuncts) to lighten and cheapen their products. Craft breweries typically use more expensive versions of these ingredients and brew their products relatively inefficiently while large scale breweries use cheaper ingredients and but much more efficient methods. By the numbers, the Brewers Association defines a craft brewery as producing less than 2,000,000 barrels a year and large breweries more than that amount. This results in $10-$15 retail priced 12 oz. six-packs of craft and $6-$8 six-packs for large domestics. However, like cheap gas, cheap beer is a thing of the past. As barley and hop farmers continually opt for the more profitable subsidized corn, soy and biofuel crops, no brewery is safe from rising ingredient costs. This agricultural change, along with the lessening value of the U.S. dollar and increased global climate change, exasperates production expenses and forces brewers and beer drinkers alike into a new world of challenges where things are no longer quite what they seem.
The large domestic brewing industry segment is dependant on sales growth, not mere sustainability, which has been difficult to achieve with costs perpetually increasing. Yet there’s another problem for the big breweries: the craft beer segment just keeps growing, 12% in 2007 as compared to non-craft’s static 1.4%, hence cutting into their profits. Even though breweries at the top of the U.S. beer market are still growing, the increase isn’t happening fast enough. These challenges are stressing the current shape of the beer industry and cracks are starting to show. In response, large breweries like A-B and Coors are brewing products which resemble craft beer in an attempt to move into the growing market. This confuses both the definition of craft beer and the people trying to buy it. At the other end of the business, Belgian beer conglomerate InBev (Beck’s, Bass, Stella Artois) is attempting a takeover of A-B, the last “American Owned” mega-brewery, furthering homogenization of what the world understands as “beer”.
One may wonder how a large brewery like A-B could even make a craft segment product, and the fact that they do calls into question the definition of “craft” itself. The Brewers Association distinguishes using production volume, Dogfish’s Sam Calagione adds that a craft brewery must be independently owned and utilize expensive and flavorful ingredients. Craft beer brewers and drinkers understand what Calagione is saying, but the concept is still a little ambiguous, especially when one considers all breweries must turn a profit. Just like the big boys, the business is to turn beer into money.
However, domestic and craft brewed beer is different not only in formulation but also in conception. Domestic producers take these differences with them as they pry into the craft market, driven by their crazed need to constantly secure new markets for future sales growth. Although not all craft breweries are guiltless in this policy, many of them do realize not every gas station in every state, not to mention across the globe, needs to have a cooler full of their product. Or do they?
Such circumstances enculture mirrored phenomena within the brewing industry segments. While A-B, Coors and the rest try to sell craft-like products to increasingly educated beer drinkers, craft breweries continually look to grow and disseminate their products to more and more markets. While the business models may be similar in theory (increase profits), large domestics and craft breweries obviously have differing approaches selling to craft beer segment consumers: large breweries imitate craft products while craft breweries attempt to convert domestic beer drinkers. Both sides take it personal.
Here’s what you’re going to get from large domestics: consistent, light body, light flavor, easy drinking, large budget, colored and flavored lagers and wheat beers. A-B’s “Sundog Amber Wheat” (I thought New Holland made Sundog?), “Stone Mill Pale Ale”, “Wild Blue Blueberry Lager”, “Michelob Marzen”, “Shock Top Belgian White” and Coor’s “Blue Moon” are all designed to dupe the consumer into believing he or she has just purchased a small hand- crafted beer, possibly even made locally from the finest and freshest ingredients available. Craft brewers vehemently oppose both the actual beverage in the trendy bottle and the attempt to pass them off as being independently brewed. They argue these products are tenuous imitations of true craft quality products. Less harsh and concerned critics may just find they like these beers, no matter their lack of brewing integrity, helping level the playing field in the craft brew arena.
What you’re going to get from craft brewed beer is largely determined by the individual brewery. It’s well known craft does not necessarily imply quality; however, most successful and many not-so-well known craft breweries produce high quality historic and experimental styles of beer. True iconoclastic renegades, such as Jolly Pumpkin, Dogfish Head, Founders, Three Floyd’s and Surly breweries (note the vast disparity in production volumes) seem to actually brew what they want as opposed to what is wanted. However, the current grass roots and online network of support for these and other ultra hot breweries seems to have created a special environment in which successful growth feels imminent.
As far as craft brewer’s complaints against “culture vulture” duplication attempts, imitation is the sincerest form of flattery. One-dimensional, commercially hyped proxy craft beers may eventually earn themselves a small niche, probably right next to Pete’s Wicked “Strawberry Blond.” Not likely will craft beer consumers confuse a Jolly Pumpkin “Madrugada Obscura” with an A-B “Wild Hop Lager.” Come on guys, I think you can handle them. But if you are new to craft beer, read the small print!
recoilmag.com volume 8 issue 7 july 50
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