Friday, November 21, 2014

Who said that was CRAFT beer?

It must not be such a great time for the beer industry.  It seems that sales were down by just about 2 percent in 2013.  It’s hard to imagine why so many breweries are opening new locations and looking to expand when sales are down.

Well, just because sales are down, doesn’t mean that sales aren’t up.

While sales were down for the entire beer industry, sales for craft beer in the U.S. grew over 17 percent in 2013.  This is good news for a segment that is shooting to reach 20 percent market share by 2020.  As the craft beer market grows, the guidelines of what is considered ‘craft’ continue to blur.  Just about every beer enthusiast has their opinion about what is or isn’t craft beer, however; the supreme voice on this issue belongs to the Brewer’s Association.             

The three characteristics that define a craft brewer are small, independent, and traditional.  The Brewer’s Association defines small as having annual production less than 6 million barrels.  While this seems like a LOT of beer, the BA points out that this amount is approximately 3 percent of U.S. annual sales.  Independent is defined as having less than 25 percent ownership by an alcoholic beverage industry member that is not a craft brewer itself.  This allows for brewery mergers and buyouts, just as long as the purchaser isn’t a non-craft brewer.  The defining characteristic of traditional brewers, are those that have a majority of their total volume in beers whose flavors derive from traditional or innovative brewing ingredients.  Up until this year, a number of century old brewers were kept out of the craft category for not being considered traditional. 

The definition of craft beer has created an ambitious ‘Us vs. Them’ challenge between the small brewers and the very large brewers.  These guidelines also create debate among beer geeks who either accept or reject the parameters.  The changes made to the Brewer’s Association’s definition of traditional could cause a huge impact to the state of craft beer.  Due to their use of adjunct ingredients, Yuengling has never been considered a craft beer.  While the BA hasn’t announced which specific brewers would be considered craft due to the changes, it is highly likely that Yuengling would now be a craft beer.  The reason that this is so important is because Yuengling produces more beer than Sam Adams, who is currently number 1 on the craft beer list.  The inclusion of Yuengling alone could have a noticeable impact on craft beer’s market share.

As beer lovers around the country get ready to celebrate the annual release of Goose Island’s Sour Sisters (Gillian, Halia, Juliet and Lolita) as well as the Black Friday release of Bourbon County Stout, how many of these people will be concerned with the fact that this is not considered a craft beer.  This is a moment when craft beer drinkers needs to ask themselves, “does it matter?”  For the most part, absolutely not.  There are countless beers out there now that were once considered ‘craft’ that no longer fit into the guidelines.

Does this mean that the beers are no longer as good?  Do these beers lack a certain level of quality?  Should craft beer drinkers avoid them?  

NO, NO, NO

What difference does it make?  Well, by drinking these beers, you are in no way helping increase craft beer’s market share.  With the money you spend on that bottle of Goose Island Gillian, you could have bought a case of Boston Lager and helped fight the good fight.

Is that what it’s all about?

It doesn’t have to be.  Unfortunately, the guidelines handed down to us from the Brewer’s Association equate BCS with Shock Top and Blue Moon.  The difference is that some of these beers that are not considered craft were never considered craft, while others used to be.  The companies that used to be craft are definitely operating at an advantage now.  More money and more connections to ingredients and distributors can go a long way in the beer business.  How do these changes affect the beer?  They most likely are going to improve the overall quality.  So why would anyone boycott a beer that’s higher quality, just because of different ownership?

Whatever the definitions may be, it would be amazing to see craft beer gain 20 percent market share by 2020.  The Brewer’s Association works hard to provide all sorts of help to craft brewers to help level the playing field.  This is of the utmost importance to the craft beer business.  While it’s always great to support the craft brewers out there, it doesn’t need to be mutually exclusive.  Don’t let great beers slip by, just because they’re not called craft.      



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