- Joined
- Jul 28, 2013
- Messages
- 3,101
- Reaction score
- 5,538
Jim asks "Is It Last Call for Craft Beer? "
- Thread starter shetc
- Start date
Help Support Homebrew Talk - Beer, Wine, Mead, & Cider Brewing Discussion Forum:
microbusbrewery
Senior Member
The link above didn't work for me, but the following one should. Interesting read.
https://www.nytimes.com/2017/04/07/opinion/is-it-last-call-for-craft-beer.html?_r=0
https://www.nytimes.com/2017/04/07/opinion/is-it-last-call-for-craft-beer.html?_r=0
I didn't read all of it. But craft beer is not going to go away. There may be some shrink in the number of separate breweries. But the hated BMC breweries are going to be making craft beers. If you don't like their monopolies you have to stop buying their beers and convince your BMC friends to try craft beers not brewed by them.
bajaedition
Well-Known Member
- Joined
- Dec 30, 2013
- Messages
- 1,187
- Reaction score
- 306
You can vote with your wallet.
but here is the problem: It seems that all craft brewers want a bigger audience, they may start out as a brewpub with a 30 barrel system, then move up to step by step until they get to a point.
That point is economics, is it cheaper to have a company contract your brew, or to buy more land, more equipment and have more employees.
The answer is contract brew. All of the big three have been contract brewing for decades. You may not realize it but a lot of those craft beers you drink have been contract brewed by the big 3. Or one of the other contract brewers out there. It is actually a big part of their business and they depend on the revenue. Look at it this way, they are getting a piece of the pie of the competition.
And then it happens, You get the latest increase in price to brew your beer from the bog 3, along with an offer for your name. What do you do, take the money and run, never having to work again? Or do you keep going on with the frustrations and hair pulling decisions of being in business?
Craft beers are not going go anywhere, when BMC have to answer with beers designed to look like craft beers, it is because they want part of a growing business. At that point it is not a fad anymore.
So how do we respond? vote with our wallets and only buy real craft beer.
but there is a problem there, how many of us will do that, you see most of the market are blissfully unaware, and no matter what you do will remain there.
and of the rest, about half of them buy BMC product on a regular basis anyway
And here we sit watching big business pull the wool down further.
but here is the problem: It seems that all craft brewers want a bigger audience, they may start out as a brewpub with a 30 barrel system, then move up to step by step until they get to a point.
That point is economics, is it cheaper to have a company contract your brew, or to buy more land, more equipment and have more employees.
The answer is contract brew. All of the big three have been contract brewing for decades. You may not realize it but a lot of those craft beers you drink have been contract brewed by the big 3. Or one of the other contract brewers out there. It is actually a big part of their business and they depend on the revenue. Look at it this way, they are getting a piece of the pie of the competition.
And then it happens, You get the latest increase in price to brew your beer from the bog 3, along with an offer for your name. What do you do, take the money and run, never having to work again? Or do you keep going on with the frustrations and hair pulling decisions of being in business?
Craft beers are not going go anywhere, when BMC have to answer with beers designed to look like craft beers, it is because they want part of a growing business. At that point it is not a fad anymore.
So how do we respond? vote with our wallets and only buy real craft beer.
but there is a problem there, how many of us will do that, you see most of the market are blissfully unaware, and no matter what you do will remain there.
and of the rest, about half of them buy BMC product on a regular basis anyway
And here we sit watching big business pull the wool down further.
jrgtr42
Well-Known Member
Jim does have some good points in the article, but I think the breweries that are going to have issues are the big craft, like Sam Adams themselves, SN, maybe Stone, etc, - the ones with the national distro.
Yes, there will be a contraction of the small ones too, as less successful brewers shut down - either from lack of business sense or not brewing "good enough" beer in a crowded local marketplace. AB-Sab-Miller-Inbev - whatever they call them selves can not buy enough breweries to be able to shut down craft completely.
They may be able to shut it out of some restaurants and such by having a lot of brands, but there will always be those who do serve local and independent.
At least in my area, a lot of people are now going straight to the breweries and buying direct, maybe causing an issue with package stores, though there is already a line there with how many skus they can reasonably turn over and how many breweries are opening every day, fighting for that shelf space.
Yes, there will be a contraction of the small ones too, as less successful brewers shut down - either from lack of business sense or not brewing "good enough" beer in a crowded local marketplace. AB-Sab-Miller-Inbev - whatever they call them selves can not buy enough breweries to be able to shut down craft completely.
They may be able to shut it out of some restaurants and such by having a lot of brands, but there will always be those who do serve local and independent.
At least in my area, a lot of people are now going straight to the breweries and buying direct, maybe causing an issue with package stores, though there is already a line there with how many skus they can reasonably turn over and how many breweries are opening every day, fighting for that shelf space.
Interesting read. The multinationals are playing a long game by acquiring smaller breweries. My favorite acquisition was when AB bought Elysian two years back. I don't blame them. It is apparent to me that the old American Lager target audience is aging out, and will at some point be a memory. I don't think younger people, especially in parts of the country with easy access to brewpubs are not interested in the taste or experience of the Corporate Beer. I don't blame InBev or SABMiller or whomever else. The Elysian folks stated that they wanted better distribution. Did they sign a distribution agreement with AB? No, they were acquired. Now a six pack of national craft beers is $10, in the Pacific Northwest where there is no lack of competition.
Is this the Justice Department's job to defend a concept and to deprive a big fat payday for successful craft brewers and maybe prevent a slippery-slope to duopoly control of the beer market and the eventual possibility of price fixing? Is it a consumer's job to research the companies they support to find out if they are allowing conglomerates to thrive in the craft scene? Is it the conglomerates job to restrain from profit-taking activities?
Hard questions. I want to get to the point where the only beer I drink at home is what I made, and the only beer I drink out is the stuff brewed around me. We'll see where this goes. However, I do really like irony.
Is this the Justice Department's job to defend a concept and to deprive a big fat payday for successful craft brewers and maybe prevent a slippery-slope to duopoly control of the beer market and the eventual possibility of price fixing? Is it a consumer's job to research the companies they support to find out if they are allowing conglomerates to thrive in the craft scene? Is it the conglomerates job to restrain from profit-taking activities?
Hard questions. I want to get to the point where the only beer I drink at home is what I made, and the only beer I drink out is the stuff brewed around me. We'll see where this goes. However, I do really like irony.
Similar threads
