Cool craft brew article

[tcrums]

I live in the northwest and didn't realize there was such a difference between our market and the rest of the nation. This is a pretty cool article about the growth of craft brews in the last few years. I just started home brewing and I think those of you that have been doing this for many years are largely responsible for this.
http://www.thedaily.com/page/2012/04/01/040112-biz-beer-1-5/

 

[PistolsAtDawn]

I hope that the last few lines does not prove to be true. I have a feeling that given the current business model that the big three have, they will never really brew beer on par with craft breweries. I hope.

 

[DeafSmith]

rant

"the rest of the world is getting more sophisticated palettes"

Grrrrrr! It's PALATE, damn it, not PALETTE.

You'd think a reporter would know how to spell.

/rant

 

[spearko520]

maybe he is referring to the new, sleek and cosmopolitan palette that all the cool cat painters are rocking these days- has two thumb holes in it...

 

[Qhrumphf]

I doubt that the masses of Americans are going to give up on light beer any time soon. If there's one thing the big brewers are great at, it's producing a consistent product that appeals to the masses. And the big brewers switching it around on a major level won't bode well for them. I can see craft beer continuing to inch up in market share, but it's only going to go so far. But I'd say most craft brewers didn't get into the industry to get rich and dominate the market. Those that did are delusional as far as I'm concerned.

 

[Waynep005]

Just as a great Local restaurant has nothing to fear from McDonalds a great Craft Brewrey has nothing to feer from the giant Beer corporations.

 

[tcrums]

I think the last couple of lines were a through off. The main point I took was how much craft brew is growing and how much BMC is shrinking. Craft brew will probably never hit 50% market share, but it's heading in the right direction. Not that I hate BMC, I had a couple Coors last night.

 

[Tamarlane]

Last year, U.S. craft breweries — roughly defined as shops that brew less than 6 million barrels annually — sold 13 percent more beer and posted a 15 percent jump in revenue. They now control an unprecedented 6 percent of the market, according to the Brewers Association.

...

And the proliferation of small-batch brews is coming as America’s thirst for beer wanes. The country’s beer consumption dipped by 1.3 percent last year.

This is stated as a contradiction, but is it? Most folks don't typically buy 18 packs of imperial stout or drink IPAs by the pitcher... Are they measuring a drop in beer consumption by sales revenue or volume?

Edit - I see the article mentioning sales in terms of bottles sold, so I think there is probably a good chance the rise of craft beer is responsible for the drop in bottle sales rather than in spite of it...

 

[Tamarlane]

MillerCoors, which controls almost one-third of the U.S. beer market, is hoping to draw restless consumers with an iced-tea-flavored brew
...
The Bud-maker also plans to launch 19 new U.S. drinks this year, including small-batch offerings, higher-alcohol concoctions and brews mixed with tea and lime.

This stuff cracks me up.
"We are losing sales to craft breweries! We need new products to compete!"
"How about iced tea flavored beer?"
"Brilliant!"

Next year look out for Gatorade flavored beer

 

[ReverseApacheMaster]

The big breweries have so much brewing knowledge in their libraries they could brew better beers than pretty much any craft brewery in the world. Especially since they have the market power to dictate how farms grow barley, what malted products are produced, etc.

I expect them to try to diversify their profits by investing in craft breweries but not make serious inroads into the craft markets. Although they could, I don't see it. The reason is their business models rely on creating marketable products that can in drank in quanty. IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIPA is not very marketable outside of limited markets. But an iced tea flavored beer is easily marketable (especially to underage drinkers). Milder session beers are more marketable so you might see some competition in those markets but I'm confident we're not going to see serious contenders for beers in most craft styles. No Bud Light with brett, avocado, dry hopped with Amarillo, star anise, thai basil and aged in sherry barrels.

 

[betarhoalphadelta]

I think it might take a generation, but I expect the beer industry to eventually go the exact same way as the wine industry.

Yes, Franzia and Ernest & Julio Gallo are huge wine producers and sell tons of wine... But the market looks down on them as inferior products, and the supermarket shelves are full of more differentiated products.

Beer is IMHO likely to go the same way.

 

[spearko520]

The big breweries have so much brewing knowledge in their libraries they could brew better beers than pretty much any craft brewery in the world. Especially since they have the market power to dictate how farms grow barley, what malted products are produced, etc.

I expect them to try to diversify their profits by investing in craft breweries but not make serious inroads into the craft markets. Although they could, I don't see it. The reason is their business models rely on creating marketable products that can in drank in quanty. IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIPA is not very marketable outside of limited markets. But an iced tea flavored beer is easily marketable (especially to underage drinkers). Milder session beers are more marketable so you might see some competition in those markets but I'm confident we're not going to see serious contenders for beers in most craft styles. No Bud Light with brett, avocado, dry hopped with Amarillo, star anise, thai basil and aged in sherry barrels.

isn't that what they did when micros had their run in the nineties and BMC bought them all out, invested in the rest, and homogenized all the beer in belgium? look out!