tag:theconversation.com,2011:/au/topics/craft-beer-20389/articlesCraft beer – The Conversation2023-10-10T15:04:42Ztag:theconversation.com,2011:article/2152732023-10-10T15:04:42Z2023-10-10T15:04:42ZHotter, drier summers will make European craft beers less ‘hoppy’ – new study<figure><img src="https://images.theconversation.com/files/552798/original/file-20231009-15-6ttbca.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C998%2C667&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/assortment-north-american-craft-beers-ottawa-1826336123">Mike Workman/Shutterstock</a></span></figcaption></figure><p>September 2023 was the warmest ever recorded according to <a href="https://climate.copernicus.eu/climate-bulletins">the EU Climate Service</a>, with Earth’s average surface air temperature peaking at 16.38°C. The average global temperature was also at least 1.5°C higher than pre-industrial levels on about a third of days in 2023, according to <a href="https://www.bbc.co.uk/news/science-environment-66857354">another recent report</a>.</p>
<p>These are both indicators of accelerating climate change, the effects of which will be felt in all aspects of our lives. In <a href="https://www.nature.com/articles/s41467-023-41474-5">a new study</a>, for example, scientists have discovered that climate change will lower the quantity and quality of beer.</p>
<p>The main ingredients of beer are water, malting barley, yeast and hops. Hops (<em>Humulus lupulus</em>), a climbing, herbaceous perennial, gives the beer its aroma and flavour. Commercially, this crop is usually trained to grow up strings. </p>
<p>Like any crop, the climate (temperature, precipitation and hours of sunshine) <a href="https://doi.org/10.1038/s41467-023-41474-5">determines</a> how much hops grow and their condition at harvest time. The cultivation of high-quality aromatic hops is restricted to several relatively small regions in Argentina, Australia, China, Europe, Japan, New Zealand, North America and South Africa where the climate is suitable. Within this scattered distribution, cultivation is <a href="https://doi.org/10.1038/s41467-023-41474-5">concentrated</a> in Germany, the Czech Republic and Slovenia. </p>
<figure class="align-center ">
<img alt="Rows of hops growing vertically in a field." src="https://images.theconversation.com/files/552767/original/file-20231009-26-xf1p8b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/552767/original/file-20231009-26-xf1p8b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=399&fit=crop&dpr=1 600w, https://images.theconversation.com/files/552767/original/file-20231009-26-xf1p8b.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=399&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/552767/original/file-20231009-26-xf1p8b.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=399&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/552767/original/file-20231009-26-xf1p8b.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=502&fit=crop&dpr=1 754w, https://images.theconversation.com/files/552767/original/file-20231009-26-xf1p8b.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=502&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/552767/original/file-20231009-26-xf1p8b.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=502&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A hops farm in Austria.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/sunshine-hop-field-66742441">Dieter Hawlan/Shutterstock</a></span>
</figcaption>
</figure>
<p>In this new study, researchers predicted that both the yield and quality of hops will fall as a result of higher summer temperatures and changes in rainfall patterns. The outcome is likely to be less hops and less beer, with a potentially duller taste and aroma.</p>
<h2>Craft beers in crisis</h2>
<p>In recent years, demand for flavourful craft beers has boomed. The flavour comes from the female hop flowers that grow in clusters called cones and contain bitter acids, essential oils, polyphenols and many other compounds which produce, when brewed, the aroma and taste associated with beer.</p>
<figure class="align-center ">
<img alt="Green, cone-shaped structures growing on the ends of branches." src="https://images.theconversation.com/files/552768/original/file-20231009-23-jx6zj9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/552768/original/file-20231009-23-jx6zj9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=397&fit=crop&dpr=1 600w, https://images.theconversation.com/files/552768/original/file-20231009-23-jx6zj9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=397&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/552768/original/file-20231009-23-jx6zj9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=397&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/552768/original/file-20231009-23-jx6zj9.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=499&fit=crop&dpr=1 754w, https://images.theconversation.com/files/552768/original/file-20231009-23-jx6zj9.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=499&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/552768/original/file-20231009-23-jx6zj9.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=499&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Heat and drought at the end of the growing season produces hops with less of the acids necessary for a full flavour.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/green-fresh-hop-cones-making-beer-618232175">Viacheslav Rubel/Shutterstock</a></span>
</figcaption>
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<p>Some of these bitter acids, called alpha-acids, are the main source of the <a href="http://pse.agriculturejournals.cz/doi/10.17221/344/2020-PSE.pdf">bitter taste</a> of beer. Alpha-acids also protect the beer from becoming spoilt by inhibiting <a href="https://www.sciencedirect.com/science/article/abs/pii/S0740002014002470?via%3Dihub">microbes growing in it</a> and improve the stability of the foam that makes up the <a href="https://doi.org/10.1038/s41467-023-41474-5">head on beer</a>.</p>
<p>While alpha-acids begin developing as these conelike flowers start to form, 90% are produced in the last two weeks before harvest. Alpha-acid content is influenced by temperature, precipitation and sunlight duration. As average daily temperatures increase, the level of alpha-acids in the flowers decreases. At the same time, up to a point, the more rainfall there is, the higher the alpha-acid production. </p>
<p>What this means is that higher summer temperatures, along with drought and irregular rainfall, sap plant vigour and so result in lower yields and <a href="https://econpapers.repec.org/scripts/redir.pf?u=http://pse.agriculturejournals.cz/doi/10.17221/344/2020-PSE.pdf;h=repec:caa:jnlpse:v:66:y:2020:i:10:id:344-2020-pse">less alpha-acid</a>. Also, to produce high-quality hops, cones must develop as daylight hours are <a href="https://doi.org/10.1038/s41467-023-41474-5">decreasing</a>, after the summer solstice. If the plants flower too early due to warmer temperatures, the daylight length may not be ideal for alpha-acid production.</p>
<p>The new paper compared the yield, alpha-acid content and cone development of hops with environmental data from Germany, the Czech Republic and Slovenia from 1971 to 1994 and 1995 to 2018, and predicted future trends to 2050. </p>
<p>From 1971 to 2018, average temperatures rose by 1.4°C and precipitation fell by 24mm. The rising temperatures over this period moved the onset of the hop-growing season forward by 13 days and the average onset of cone development now occurs between 13 and 31 days earlier, depending on the location. As a result, the critical ripening period – when alpha-acids develop – has shifted towards the warmer part of the season, lowering the average alpha-acid content of each cone. </p>
<p>By modelling future changes in cone yield and quality, the researchers <a href="https://doi.org/10.1038/s41467-023-41474-5">predict</a> a fall of 4–18% in yield and 20–31% in alpha-acid content by 2050. This would mean that there are less hops available to make the flavoursome craft beers that have recently become so popular and instead, beer may be less “hoppy” in its aroma and flavour. </p>
<figure class="align-center ">
<img alt="A bartender pouring a pint." src="https://images.theconversation.com/files/552804/original/file-20231009-21-xk4j48.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/552804/original/file-20231009-21-xk4j48.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/552804/original/file-20231009-21-xk4j48.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/552804/original/file-20231009-21-xk4j48.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/552804/original/file-20231009-21-xk4j48.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/552804/original/file-20231009-21-xk4j48.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/552804/original/file-20231009-21-xk4j48.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Pints could taste more bland in future.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/barman-pours-light-unfiltered-beer-tap-1112166467">Alexey Andr Tkachenko/Shutterstock</a></span>
</figcaption>
</figure>
<h2>Best served chilled</h2>
<p>These predicted declines in the yield and quality of beer hops may seem enough to drive one to drink, but there is some hope.</p>
<p>In existing hop fields, changing the orientation of the crop rows so that they are not in full sun and using techniques to help the soil retain more moisture, like tilling it less, changing how fertiliser is applied, applying bark chippings or other mulches to cover the rows, could help crops weather droughts and heatwaves in future. </p>
<p>More expensive solutions include installing irrigation systems. Applying growth-inhibiting chemicals or building protective shades could also slow plant growth so that cones form when conditions are optimal. Solar panels have been installed in some vineyards to shade grapes during hot weather and, of course, generate renewable energy.</p>
<figure class="align-center ">
<img alt="Vegetable crops sheltered under a row of solar panels." src="https://images.theconversation.com/files/552797/original/file-20231009-21-b6bc4f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/552797/original/file-20231009-21-b6bc4f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/552797/original/file-20231009-21-b6bc4f.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/552797/original/file-20231009-21-b6bc4f.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/552797/original/file-20231009-21-b6bc4f.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/552797/original/file-20231009-21-b6bc4f.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/552797/original/file-20231009-21-b6bc4f.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Agrovoltaics – growing crops beneath solar panels – has proved successful elsewhere.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/agrovoltaic-farm-solar-panels-above-crops-2362768189">Epesarius/Shutterstock</a></span>
</figcaption>
</figure>
<p>Another approach involves breeding new hop varieties that retain a high alpha-acid content and other flavour-enhancing compounds in warmer and drier climates. Hop cultivation could also move to new locations. In the future, climate change may mean hops are grown at higher altitudes and latitudes and in valleys where the water table remains <a href="https://doi.org/10.1038/s41467-023-41474-5">sufficiently high</a> at critical times. </p>
<p>And so, it’s not quite last orders for the world’s third most popular beverage.</p>
<hr>
<figure class="align-right ">
<img alt="Imagine weekly climate newsletter" src="https://images.theconversation.com/files/434988/original/file-20211201-21-13avx6y.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/434988/original/file-20211201-21-13avx6y.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/434988/original/file-20211201-21-13avx6y.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/434988/original/file-20211201-21-13avx6y.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/434988/original/file-20211201-21-13avx6y.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/434988/original/file-20211201-21-13avx6y.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/434988/original/file-20211201-21-13avx6y.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<p class="fine-print"><em><span>Philip James does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>By 2050, the chemicals which make craft beers ‘hoppy’ could decrease by a third.Philip James, Emeritus Professor of Ecology, University of SalfordLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/2025732023-04-27T05:16:58Z2023-04-27T05:16:58ZHow we discovered the true origins of a pint of lager – new research<figure><img src="https://images.theconversation.com/files/517440/original/file-20230324-22-nprn5a.jpg?ixlib=rb-1.1.0&rect=0%2C0%2C5449%2C3622&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Researchers have uncovered the likely genesis of the yeast used to make lager.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/group-multicultural-friends-drinking-toasting-beer-1957298368">DavidedeAngelini / Shutterstock</a></span></figcaption></figure><p>Despite a surge in interest in craft beers and ales, lager continues to dominate global sales, with <a href="https://www.statista.com/outlook/cmo/alcoholic-drinks/beer/worldwide">more than 150 billion litres</a> consumed around the world every year.</p>
<p>Lager is a beer brewed at low temperatures using yeast that are described as “bottom-fermenting”. Yeast are single-celled fungi used in brewing to <a href="https://en.wikipedia.org/wiki/Brewing">convert maltose to alcohol and carbon dioxide</a>, giving beer its booziness and fizz. They are either top- or bottom-fermenting. </p>
<p>In top fermentation, which occurs at warmer temperatures, the yeast cells collect near the surface of the fermenting liquid. In bottom fermentation, which occurs at cooler temperatures, the yeast is carried to the bottom of the fermenting liquid. Ales (which pre-date lager) have traditionally been made using the top-fermenting yeast species <em>Saccharomyces cerevisiae</em>.</p>
<p>The origins of the bottom-fermenting lager yeast <a href="https://en.wikipedia.org/wiki/Saccharomyces_pastorianus"><em>Saccharomyces pastorianus</em></a> have long been shrouded in mystery and controversy. However, by combining historical research with modern science, a team of scientists from the <a href="https://www.tum.de/en/">Technical University of Munich</a> and <a href="https://www.ucc.ie/en/">University College Cork</a> (including myself) have uncovered the likely genesis – and path to world dominance – of <em>S. pastorianus</em>.</p>
<p>This discovery started with the study of old central European brewing records by the Munich-based scientists Franz Meussdoerffer and Martin Zarnkow. It’s a tale of power, economics, science and innovation – with some sex thrown in for good measure. </p>
<p>But in short, the mating of the yeast species <a href="https://en.wikipedia.org/wiki/Saccharomyces_cerevisiae"><em>S. cerevisiae</em></a> from Bohemia with the Bavarian yeast <em>Saccharomyces eubayanus</em> in Munich at the start of the 17th century gave rise to the first lager yeast strain.</p>
<p>Until now, prevailing wisdom had been that the emergence of bottom fermentation in brewing coincided with the genesis of <em>S. pastorianus</em>. However, among many intriguing discoveries in our new report in the journal <a href="https://academic.oup.com/femsyr/article-lookup/doi/10.1093/femsyr/foad023">FEMS Yeast Research</a> is the finding that bottom fermentation in southern Germany pre-dated the birth of <em>S. pastorianus</em> by at least 200 years.</p>
<figure class="align-center ">
<img alt="Dark beer" src="https://images.theconversation.com/files/519878/original/file-20230406-18-vejhd2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/519878/original/file-20230406-18-vejhd2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/519878/original/file-20230406-18-vejhd2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/519878/original/file-20230406-18-vejhd2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/519878/original/file-20230406-18-vejhd2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/519878/original/file-20230406-18-vejhd2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/519878/original/file-20230406-18-vejhd2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">At one time, most Bavarian beers were as dark as this one.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/mug-dark-beer-on-brown-background-2265743231">AlekSa Photo / Shutterstock</a></span>
</figcaption>
</figure>
<p>In fact, bottom fermentation originated in northern Bavaria. Not only was it common practice in this part of Germany, but the Bavarian Reinheitsgebot brewing regulations of 1516 only permitted bottom fermentation. Thus, from at least the 16th century onwards, Bavarian brown beer was produced by mixtures of different bottom-fermenting yeast species known as “stellhefen”. </p>
<h2>Exception to the rule</h2>
<p>These mixtures were dominated by yeast that preferred the lower temperatures that prevailed in Bavaria at this time, a hangover from the <a href="https://www.newyorker.com/magazine/2019/04/01/how-the-little-ice-age-changed-history">medieval little ice age</a>. Meanwhile the historic region of Bohemia, to the northeast, was under different political rule. Here, ales – including wheat beer – were produced with a preference for the top-fermenting species <em>S. cerevisiae</em>.</p>
<p>The 1516 Rheinheitsgebot barred Bavarians from brewing wheat beer, which led to a vibrant export market in the wheat-based beverages from Bohemia to Bavaria. This resulted in a loss of income to the Bavarian nobility who controlled brewing. Eventually, in 1548, the nobleman Hans VI von Degenberg was granted the privilege of brewing wheat beer in Bavaria, and his family built a famous wheat brewery in the town of Schwarzach.</p>
<figure class="align-center ">
<img alt="Brewing records." src="https://images.theconversation.com/files/522598/original/file-20230424-25-u53w6r.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/522598/original/file-20230424-25-u53w6r.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=800&fit=crop&dpr=1 600w, https://images.theconversation.com/files/522598/original/file-20230424-25-u53w6r.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=800&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/522598/original/file-20230424-25-u53w6r.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=800&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/522598/original/file-20230424-25-u53w6r.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1005&fit=crop&dpr=1 754w, https://images.theconversation.com/files/522598/original/file-20230424-25-u53w6r.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1005&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/522598/original/file-20230424-25-u53w6r.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1005&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Researchers found key information in old brewing records from Germany and central Europe.</span>
<span class="attribution"><span class="source">Mathias Hutzler</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>But privileges needed to be protected. When Hans VIII Sigmund von Degenberg, grandson of Hans VI, died without an heir in 1602, his property, including the brewery, was seized by <a href="https://en.wikipedia.org/wiki/Maximilian_I,_Holy_Roman_Emperor">Maximilian I</a>, then duke of Bavaria and later prince-elector of the Holy Roman Empire. Historical records show that on October 24 1602, top-fermenting yeast was brought to the duke’s <a href="https://www.hofbraeu-muenchen.de/en">Hofbräuhaus brewery in Munich</a> where, at the time, the brewing of wheat beer alternated with the making of traditional barley-based Bavarian brown beer.</p>
<h2>Top to bottom</h2>
<p>My colleagues and I propose that, by the time a dedicated wheat beer brewery had opened in 1607, yeasts from within the top-fermenting Schwarzach wheat beer yeast mixture and the bottom-fermenting Munich Hofbräühaus stellhefen had mated, creating the new species we now know as <em>S. pastorianus</em>. Thus, sex in a beer cellar created the direct ancestor of all modern lager yeast strains. </p>
<p>This theory is consistent with published genetic evidence showing that the <em>S. cerevisiae</em> parent of <em>S. pastorianus</em> was closer to ones used to brew wheat beer than strains used for barley-based ale.</p>
<figure class="align-center ">
<img alt="Rock cellar in Franconia." src="https://images.theconversation.com/files/522599/original/file-20230424-14-lv4tj0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/522599/original/file-20230424-14-lv4tj0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=800&fit=crop&dpr=1 600w, https://images.theconversation.com/files/522599/original/file-20230424-14-lv4tj0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=800&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/522599/original/file-20230424-14-lv4tj0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=800&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/522599/original/file-20230424-14-lv4tj0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1005&fit=crop&dpr=1 754w, https://images.theconversation.com/files/522599/original/file-20230424-14-lv4tj0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1005&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/522599/original/file-20230424-14-lv4tj0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1005&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">One of the rock cellars in Franconia where bottom fermentation was established in the 14th and 15th centuries.</span>
<span class="attribution"><span class="source">Mathias Hutzler</span>, <span class="license">Author provided</span></span>
</figcaption>
</figure>
<p>That is not the end of the story, however. Two hundred years later, in 1806, the recruitment by the Munich Hofbräuhaus of a new master brewer, Gabriel Sedlmayr the Elder, transformed the world of beer forever. </p>
<p>Although Sedlmayr resigned and purchased the <a href="https://en.wikipedia.org/wiki/Spatenbr%C3%A4u">Oberspatenbräu</a> brewery after only a year, he took yeast mixtures with him and established a very successful brewing system based on technological innovation and links to local academics.</p>
<p>Later known as the Späten breweries, the enterprise begun by Sedlmayr became a centre of excellence that attracted brewers from all over Europe, who returned home with the Munich technology – and its yeasts. Among them was <a href="https://en.wikipedia.org/wiki/J._C._Jacobsen">J.C. Jacobsen</a>, founder of the Carlsberg brewery, who took the Munich stellhefen back to Denmark’s capital Copenhagen in 1845. </p>
<p>It was there, in 1883, that Emil Christian Hansen isolated the first pure strains of <em>S. pastorianus</em>. Jacobsen and Hansen of the Carlsberg brewery, Gabriel Sedlmayr the Younger, and Luis Aubry, a brewing scientist and microbiologist at the Munich Research Station, shared a friendship based on a passion for beer and progress. This contributed to some fertile scientific and technological exchanges between them.</p>
<p>Not long afterwards, the <a href="https://en.wikipedia.org/wiki/Paul_Lindner">German scientist Paul Lindner</a>, working at the Berlin Institute, <a href="https://books.google.co.uk/books/about/Mikroskopische_Betriebskontrolle_in_den.html?id=1VFIAAAAYAAJ&redir_esc=y">also isolated</a> <em>S. pastorianus</em> from mixtures derived originally from the Späten breweries, which were now in wide circulation among Munich breweries. </p>
<p>All modern lineages of <em>S. pastorianus</em> can be traced to the work of Hansen and Lindner, and so are ultimately descended from the Hofbräuhaus stellhefen. </p>
<p>Further intrigue followed, including bitter inter-brewery rivalries and heated academic debates about the evolutionary relationships between different strains. But for now, we can rest happy in the knowledge that a crucial missing piece has been found in the account of how the pint of lager was born.</p><img src="https://counter.theconversation.com/content/202573/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>John Morrissey receives research funding from the European Union, Science Foundation Ireland and Enterprise Ireland.</span></em></p>Little-known documents and scientific detective work helped pinpoint the origin of lager.John Morrissey, Lecturer in Microbiology, University College CorkLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1989232023-02-14T17:39:47Z2023-02-14T17:39:47ZWhy craft beer fosters better communities than its corporate competitors<figure><img src="https://images.theconversation.com/files/507371/original/file-20230131-14-dcs65l.jpg?ixlib=rb-1.1.0&rect=209%2C0%2C6974%2C3790&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Craft beer now represents 13.1% of overall sales of beer in the US. </span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/craft-beer-booze-brew-alcohol-celebrate-564404707">Rawpixel.com / Shutterstock</a></span></figcaption></figure><p>Craft beer is big business. In 2021, craft beer sales in the US (the biggest beer market by sales) <a href="https://www.brewersassociation.org/statistics-and-data/national-beer-stats/">totaled US$26.8 billion</a> (£22 billion) and represented 13.1% of overall sales of beer. And it’s a growing market.</p>
<p>In 2015 there were 4,803 craft breweries in the US, <a href="https://www.brewersassociation.org/statistics-and-data/national-beer-stats/">by 2021 there were 9,118</a>. The number of UK craft breweries, in that same period grew from 1,527 to 1,755. While the sales and growth are impressive, what matters more is what these figures represent – a growing interest in a superior quality beer from both producers and consumers.</p>
<p>Equally important is the ideological shift in the beer market they signify. Big beer (large corporate breweries such as AB Inbev) singularly seeks and values profit. Craft beer, while also motivated by profit, equally values community, quality and independence.</p>
<h2>A brief history of craft beer</h2>
<p>The craft beer movement <a href="https://ray.yorksj.ac.uk/id/eprint/7197/">began as an act of resistance</a>. In the years after the second world war, the beer market had become controlled by big, corporate beer producers who offered little in the way of variety or quality.</p>
<p>Mediocre lagers produced by the likes Budweiser or Heineken <a href="https://www.researchgate.net/publication/237260016_Energy_Efficiency_Improvement_and_Cost_Saving_Opportunities_for_Breweries_An_ENERGY_STARR_Guide_for_Energy_and_Plant_Managers/figures?lo=1">dominated the market</a> to such a degree that they were basically the only choice. Early craft brewers refused to accept this and began researching forgotten beer styles, honing their brewing skills and putting business plans together.</p>
<p>Their efforts produced better and more interesting beers, but through their rejection of corporate beer’s profit-over-all ideology, they also produced a new community of enthusiasts with a value system that distinguished them from the corporate beer scene.</p>
<h2>What makes a craft beer ‘authentic’?</h2>
<p>The values of the craft beer community (what it considers important about itself) <a href="https://ray.yorksj.ac.uk/id/eprint/7197/">revolve around authenticity and community membership</a>.</p>
<p>Being seen as more or less in line with these values is how individuals or breweries rise and fall in status. According to anthropologist <a href="https://eprints.lse.ac.uk/53220/1/Graeber_Value_brings_universes_2016.pdf">David Graeber</a>, these values are also how the craft beer scene works to increase the status of craft beer within the rest of society.</p>
<p>For craft producers, authenticity is judged on production size (the smaller the better) and if, as <a href="https://www.google.co.uk/books/edition/Producing_and_Consuming_the_Craft_Beer_M/UdCsEAAAQBAJ">Graeber explains</a>, they “use the best ingredients, work slowly and purposefully, make the best beer possible, and care about every step in the process”.</p>
<figure class="align-center ">
<img alt="Two friends cheers their craft beers together." src="https://images.theconversation.com/files/507646/original/file-20230201-10491-72sxwv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/507646/original/file-20230201-10491-72sxwv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/507646/original/file-20230201-10491-72sxwv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/507646/original/file-20230201-10491-72sxwv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/507646/original/file-20230201-10491-72sxwv.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/507646/original/file-20230201-10491-72sxwv.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/507646/original/file-20230201-10491-72sxwv.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Craft beer consumers become members in good standing by discussing craft products with other beer drinkers.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/group-black-friends-sitting-dining-table-2038183505">bbernard / Shutterstock</a></span>
</figcaption>
</figure>
<p>The idea of authenticity for craft consumers is more nuanced – they may not always drink craft beer, but still consider themselves members of the community. For enthusiasts, community membership is built around a shared interest in craft beer and a shared understanding of the group ideology.</p>
<p>Good reputation in the community for craft beer producers is achieved by making great beer, being present at beer festivals, partnering with pubs for tap takeovers and educating people so they can better appreciate craft beer. It’s also achieved by working and sharing resources with other craft breweries.</p>
<p>Craft beer consumers become members in good standing by exhibiting their knowledge of craft beer, drinking it and discussing and promoting it to others. <a href="https://eprints.lse.ac.uk/53220/1/Graeber_Value_brings_universes_2016.pdf">All of this</a> reinforces the community’s values but also works to recruit new members.</p>
<h2>Craft values in practice</h2>
<p>These values are not merely ideological – they manifest in practice. Craft beer festivals that showcase and promote craft beer as a better and more community-engaged option are examples of this, as are craft beer bars and pubs. But there are a few exemplary stories in the craft scene that really highlight its values and ideology.</p>
<p>During the great hops shortage of 2008, the industry was left scrambling. Jim Koch, of Boston Beer Company, opened <a href="https://www.supermarketnews.com/center-store/sam-adams-shares-its-hops">his hops reserve</a> exclusively to craft brewers so that they could continue to participate in the market.</p>
<figure class="align-center ">
<img alt="Friends try different beers at a craft beer festival." src="https://images.theconversation.com/files/507662/original/file-20230201-11291-jyhvu6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/507662/original/file-20230201-11291-jyhvu6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/507662/original/file-20230201-11291-jyhvu6.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/507662/original/file-20230201-11291-jyhvu6.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/507662/original/file-20230201-11291-jyhvu6.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/507662/original/file-20230201-11291-jyhvu6.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/507662/original/file-20230201-11291-jyhvu6.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Friends try different beers at a craft beer festival.</span>
<span class="attribution"><span class="source">Shutterstock</span></span>
</figcaption>
</figure>
<p>At a time when he could have squeezed needy breweries for profit, Koch asked that they pay only what the hops had cost. This cemented Boston Beer Company as a member in good standing and despite the brand’s massive size it is still considered part of the craft scene.</p>
<p>Another is the <a href="https://beerstreetjournal.com/avery-collaboration-not-litigation-ale/">Collaboration, Not Litigation</a> incident. Two craft breweries, Avery Brewing and Russian River Brewing, found that they both had a beer named Salvation. Instead of engaging in a legal battle, the breweries collaborated on a beer that was a blend of both their versions of Salvation – “Collaboration, Not Litigation Ale”.</p>
<p>These stories are often rolled out when the socially focused community values of craft beer come into question. They serve as a kind of evidence that there is a tangible community around craft beer and that it is more than a collection of people who like superior beer.</p>
<p>There is also a <a href="https://eu.freep.com/story/entertainment/2018/06/01/craft-beer-book-selling-out-review-goose-island-josh-noel/637642002/">well known example</a> of craft beer policing its own boundaries. In 2011, Greg Hall, owner of the craft brewery Goose Island retired. AB Inbev stepped in and bought the brewery. They kept the name but cut corners, reducing the beer quality in every measurable way.</p>
<figure class="align-center ">
<img alt="A hand holds a pint of beer in a Goose Island branded glass featuring a goose head." src="https://images.theconversation.com/files/507661/original/file-20230201-25-40n0lz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/507661/original/file-20230201-25-40n0lz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/507661/original/file-20230201-25-40n0lz.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/507661/original/file-20230201-25-40n0lz.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/507661/original/file-20230201-25-40n0lz.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/507661/original/file-20230201-25-40n0lz.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/507661/original/file-20230201-25-40n0lz.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A Goose Island pint – a once craft beer turned mainstream.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/chicago-illinois-united-states-october-7-1216080121">Saejun Ahn</a></span>
</figcaption>
</figure>
<p>Despite this inferior product being released under the Goose Island label, the craft community was not fooled. They saw this faux craft beer as a cynical money grab and an intrusion on the culture. Goose Island had eschewed the values and broken the community’s trust. <a href="https://eu.freep.com/story/entertainment/2018/06/01/craft-beer-book-selling-out-review-goose-island-josh-noel/637642002/">They were no longer considered craft</a> and were lumped in with the other profit-over-quality corporate breweries.</p>
<p>Sure, craft beer is a product, but it is also a practice and a community. Craft breweries seek profit, but unlike big beer, they are not willing sell an inferior product to increase revenue. Rather, they seek to make innovative and inspired products.</p>
<p>Craft drinkers know this and reward these breweries with their attention and purchases. This community is unified around their shared values – break the values and you violate the community standards. Adherence to them keeps the community growing.</p>
<p>So, crack open a craft beer, enjoy the effort that went into making it, support the community and do your part in resisting the corporate mediocrity that big beer tries to foist on us all.</p><img src="https://counter.theconversation.com/content/198923/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Tyson Mitman does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>As the craft beer industry grows, so too do the dedicated communities that form around it – an expert explains.Tyson Mitman, Senior Lecturer in Sociology and Criminology, York St John UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1853512022-08-02T20:07:43Z2022-08-02T20:07:43ZLess leadership, more democracy: lessons from a craft brewer’s management crisis<figure><img src="https://images.theconversation.com/files/474619/original/file-20220718-51582-dx23r5.jpg?ixlib=rb-1.1.0&rect=0%2C6%2C1500%2C990&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Selection of BrewDog products at the Edinburgh October Elite Event.</span> <span class="attribution"><a class="source" href="https://wordpress.org/openverse/image/bd1a59a7-02e0-4236-8fd0-c82bc40868bf">Yelp</a>, <a class="license" href="http://creativecommons.org/licenses/by-nc-sa/4.0/">CC BY-NC-SA</a></span></figcaption></figure><p>Craft beer brewing was born back in the 1980s, and while the start was slow, it’s since become a big business. One of the success stories is Scotland’s BrewDog, which was founded in 2007 by James Watt and Martin Dickie. Fifteen years after they pulled their first pint, BrewDog has become one of the sector’s leaders. In 2020, the firm’s overall revenues grew by 10%, online sales by 900% and the gross profit margin to 48%. All this despite the pandemic and the fact that the majority of its 100 bars were closed for long periods over the year. The company is currently valued at close to £2 billion and employs <a href="https://d1fnkk8n0t8a0e.cloudfront.net/docs/BrewDog-Reports_Accounts-2020.pdf">more than 1,600 people globally</a>.</p>
<p>BrewDog grew thanks to crowdfunding support from thousands of small investors and a reputation for doing business with social and environmental values. Aiming to distinguish themselves from traditional corporations, the company sought to become “the best employer in the world” and refers to their employees as “our people”, “the beating heart of our business” and “the reason we exist”.</p>
<p>Unfortunately, despite such rhetoric, 2021 was a turbulent year for the company, triggered by allegations from former employees that there was a bullying culture. The allegations were made in an <a href="https://www.punkswithpurpose.org/dearbrewdog/">June 2021 open letter</a> signed by more than 300 former and current workers. They accused the company of creating a <a href="https://www.thetimes.co.uk/article/brewdogs-ethical-status-at-risk-over-allegations-of-rotten-culture-lg9stcnnb">“rotten culture”</a> in which growth is pursued at all costs and employees are left feeling burnt-out, miserable and afraid to speak out.</p>
<h2>Certification, yet troubling questions</h2>
<p>Ironically, the letter was published just four months after the firm was <a href="https://www.bcorporation.net/en-us/find-a-b-corp/company/brew-dog">certified as a B Corp</a>, with the workers’ dimension receiving the highest score. The certification is aimed at businesses that meet high standards of social and environmental performance, transparency and accountability toward generating positive impact on its stakeholders – workers, communities, customers, suppliers, and the environment.</p>
<p>The accusations and the company’s move to offer attractive financial terms to private equity groups left many of the BrewDog’s 18,000 crowdfunding investors <a href="https://www.ft.com/content/5ad0e222-a35b-4ae8-aa16-27f1feb964a5">deeply worried</a>. The organisation that runs the B Corp certification, B Lab, also raised concerns.</p>
<p>In response, the company apologised and announced plans to conduct an independent review into the allegations. It concluded that mistakes were made and the company would <a href="https://www.thetimes.co.uk/article/brewdog-draws-a-line-under-culture-row-whg22lm7d">enact measures to address them</a>. But it was too little, too late. A month after the announcement, a BBC documentary, <a href="https://www.bbc.co.uk/programmes/m0013yfj">“The Truth about BrewDog”</a>, brought the accusations back to the headlines. Many were directed at the company’s leader and co-founder, James Watt, who had <a href="https://www.theguardian.com/business/2022/jan/21/brewdog-boss-accused-of-trying-to-intimidate-ex-staff-over-tv-expose">allegedly attempted</a> to pressure former staff from appearing in the documentary.</p>
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<iframe width="440" height="260" src="https://www.youtube.com/embed/XamxzvGm8YQ?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">‘The Truth about Brewdog’, BBC.</span></figcaption>
</figure>
<p>In May 2022, Watt announced that he would donate a fifth of his personal shares to an employee trust providing share options to around 750 of its 2,200 staff. Despite being a limited form of employee ownership, <a href="https://www.ft.com/content/134f78ef-1291-4bb4-af0f-75ef99994a5d">he described it</a> as a “radical” move and “very much about ownership, about building a new type of company and about giving back.”</p>
<h2>Limitations of leadership</h2>
<p>The BrewDog case raises important questions about the limitations of certification systems and the potential of employee ownership. <a href="https://research-information.bris.ac.uk/en/publications/b-corp-certification-and-its-impact-on-organizations-over-time">My PhD research</a> involved an in-depth comparative case study of four leading Brazilian B Corps during 2015, combining 57 interviews of leaders and employees with observation-led research and document analysis, including the companies’ B Impact Assessement reports. The enquiry revealed three key points:</p>
<ul>
<li><p>The role of leaders is decisive in shaping the culture of these companies;</p></li>
<li><p>However, certification is not always followed by plans to address remaining critical gaps, particularly with regards to the companies’ governance processes and relationship with workers;</p></li>
<li><p>Corporate governance is key to achieving a balance of purpose and profit.</p></li>
</ul>
<p>This raises the question as to whether improving leadership is enough or bringing workers to the centre of decision-making is what will make a difference. <a href="https://link.springer.com/article/10.1007/s10551-018-3924-0#:%7E:text=Employees%20as%20Conduits%20for%20a%20Firm's%20Stakeholder%20Engagement%20Practices&text=Stakeholder%20engagement%20therefore%20is%20part,2002">Research</a>) carried out with a group of small and medium-sized B Corps shows that those who had some form of ownership and/or governance model shared with employees presented higher levels of engagement with external stakeholders. Having a stake in the company made employees feel more invested and interested in developing positive relationships with customers, suppliers, communities, and the environment. </p>
<p>The importance of employee ownership to reinforce social mission is perhaps something that the B Corp movement could be more explicit about. As for BrewDog, it’s still a timid step, but appears to be a move in the right direction to prioritise collective democracy over individual leadership in the workplace.</p>
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<img alt="" src="https://images.theconversation.com/files/310261/original/file-20200115-134768-1tax26b.png?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/310261/original/file-20200115-134768-1tax26b.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=158&fit=crop&dpr=1 600w, https://images.theconversation.com/files/310261/original/file-20200115-134768-1tax26b.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=158&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/310261/original/file-20200115-134768-1tax26b.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=158&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/310261/original/file-20200115-134768-1tax26b.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=198&fit=crop&dpr=1 754w, https://images.theconversation.com/files/310261/original/file-20200115-134768-1tax26b.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=198&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/310261/original/file-20200115-134768-1tax26b.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=198&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<p><em>Created in 2007 to help accelerate and share scientific knowledge on key societal issues, the AXA Research Fund has supported nearly 700 projects around the world conducted by researchers in 38 countries. To learn more, visit the site of the AXA Research Fund or follow on Twitter @AXAResearchFund.</em></p><img src="https://counter.theconversation.com/content/185351/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Malu Villela Garcia's current work is supported by the AXA Research Fund</span></em></p>Scotland’s BrewDog had long championed its social and environmental values, then came accusations of a “bullying culture”. What can we learn from their case?Malu Villela, Senior Research Associate at the School of Management, University of BristolLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1636312021-07-20T12:13:50Z2021-07-20T12:13:50ZFor some craft beer drinkers, less can mean more<figure><img src="https://images.theconversation.com/files/411972/original/file-20210719-17-ui278b.jpg?ixlib=rb-1.1.0&rect=787%2C147%2C2043%2C1369&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">For years, the market was inundated with heavy IPAs. Now drinkers are starting to push back.</span> <span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/recession-increase-in-popularity-of-home-brew-jeff-lindsay-news-photo/1080969168?adppopup=true">Bruce Milton Miller/Fairfax Media via Getty Images</a></span></figcaption></figure><p>My prepandemic summers were always packed with travel – trips to Europe for work and play, and, most recently, a road trip across the American West. At the end of a sweltering day of activities, I’d routinely wind down with some social drinking.</p>
<p>In recent years, though, I started to notice a shift. Beer lists had grown to include more and more low-alcohol options.</p>
<p>Whether I was in Braunschweig, Germany, a suburb of Salt Lake City, or at home in Central Texas, I found myself no longer forced to choose between the likes of Stella Artois or Miller Lite if I wanted something that wouldn’t put me under the table. Now I could expect to find a bevy of local or national options with an alcohol by volume, or ABV, in the 4% to 5% range – below the 5.9% average of a craft beer and well below the 7% India pale ales that had been flooding the market.</p>
<p>I even started seeing more nonalcoholic beers like <a href="https://www.heineken.com/us/en/our-products/heineken-0-0">Heineken 0.0</a>, which was first released in Europe in 2017 and then in the U.S. in 2019.</p>
<p>It seemed to me that low- and no-alcohol beers were becoming much more popular, but I wasn’t sure. So like a good scholar, I decided to look to the data to find an answer.</p>
<p><a href="https://doi.org/10.1007/978-3-030-41654-6_7">In a recent study</a> I conducted with my colleagues at <a href="https://www.txstate.edu/">Texas State University</a>, we looked at industry literature and <a href="https://www.fus.edu/intervalla/volume-7-questions-of-taste/virtual-pub-crawl-assessing-the-utility-of-social-media-for-geographic-beer-research-in-the-united-states">social media mentions</a>, popular media articles and changes to alcohol regulations. We found that there is, in fact, a growing interest in consuming – and improved technology for producing – beer with less alcohol.</p>
<h2>The rise of big ‘small’ beer</h2>
<p>Beer has a complicated history in the U.S. Prior to the industry consolation that is the contemporary norm, small, local breweries dotted the country. <a href="https://theconversation.com/how-prohibition-changed-the-way-americans-drink-100-years-ago-129854">Prohibition devastated the industry</a>, but, when it was repealed in 1933, <a href="https://www.chicagoreviewpress.com/audacity-of-hops--the-products-9781613737088.php">there was a period of rebirth</a>.</p>
<p>Although brewing and the consumption of alcohol did <a href="https://uncpress.org/book/9781469652177/alcohol/">not completely stop</a> during Prohibition, overall consumption was drastically reduced. Any drinking that did take place was driven behind closed doors.</p>
<p>However, the repeal of Prohibition returned alcoholic beverages to the public arena. As alcohol restrictions and regulations were loosened or removed altogether, the <a href="https://oxford.universitypressscholarship.com/view/10.1093/acprof:oso/9780199693801.001.0001/acprof-9780199693801-chapter-1">volume of production rose rapidly</a>.</p>
<p>Over the course of the 20th century, <a href="https://www.chicagoreviewpress.com/audacity-of-hops--the-products-9781613737088.php">technological innovations</a> – ranging from improvements to the pasteurization process, to better transportation infrastructure, to advancements in packaging engineering – allowed breweries to scale up their operations.</p>
<p>It was during this period that American brewers like Budweiser <a href="https://doi.org/10.1080/00076791.2015.1027691">uncovered an untapped market for light-colored, low-ABV beer</a>.</p>
<p>To this day, the U.S. is known for its <a href="https://doi.org/10.1080/00076791.2015.1027691">bland macro brews</a>: Budweiser, Miller and Coors. But despite that long history – or perhaps because of it – the country’s <a href="https://doi.org/10.1111/foge.12034">craft beer industry</a> has exploded over the past couple of decades.</p>
<p>In 1983, <a href="https://www.cambridge.org/core/journals/journal-of-wine-economics/article/craft-beer-in-the-united-states-history-numbers-and-geography/51285F0DA449C6DE7B00D8D201FD7F6A">there were 14 craft brewers in the U.S.</a> In 2000, the <a href="https://www.brewersassociation.org/statistics-and-data/national-beer-stats/">Brewers Association</a> counted 1,566 craft breweries. By 2020, the number had swelled to 8,884.</p>
<p>What brewers have dubbed the “<a href="https://www.goodreads.com/book/show/18139968-the-craft-beer-revolution">craft beer revolution</a>” is characterized by its sophistication and specialization; craft brewers have traditionally produced a dizzying array of brands and styles, <a href="https://www.joshuambernstein.com/complete-beer-course">moving the market</a> toward “bigger” – meaning bolder, stronger – brews.</p>
<p>This has led to a paradox. Large-scale producers became known for brewing “small” – low in alcohol and, ostensibly, low in flavor – beer. Meanwhile, smaller breweries became known for making “big” – more flavorful, higher in alcohol – beers.</p>
<h2>Changing times, changing tastes</h2>
<p>While among most beer aficionados, heavy, high-alcohol beer is still popular, demand for lower-alcohol or nonalcoholic options is rising.</p>
<p>The Brewers Association highlights a shift toward “mindful drinking,” indicating that consumers are increasingly keeping an eye on the carbohydrate, gluten or alcohol content of their drink of choice. In fact, <a href="https://www.brewersassociation.org/insights/2020-points-and-2021-predictions/">two-thirds of drinkers</a> say they take into account one or more of these attributes when drinking.</p>
<p>Meanwhile, more Americans are “<a href="https://www.npr.org/sections/health-shots/2019/06/23/732876026/breaking-the-booze-habit-even-briefly-has-its-benefits">sober curious</a>,” insofar as they are willing to take a short break from drinking or choose to abstain from alcohol altogether. These individual choices are part of an overarching social shift making, as NPR put it, “<a href="https://www.npr.org/sections/thesalt/2017/10/06/555909072/teetotaling-made-trendy">teetotaling trendy</a>.”</p>
<p>There’s long been the cultural belief that only people recovering from alcoholism drink nonalcoholic beer. In our study, though, we found that people were increasingly drawn to nonalcoholic beers for a number of reasons.</p>
<p>Someone may be allergic or intolerant to alcohol, taking a medicine that contraindicates alcohol consumption, or have religious or personal preferences that tend toward abstention. Others want to retain the ability to be responsive or responsible for later activities, like serving as a designated driver, operating heavy machinery or being “on-call” for work.</p>
<h2>Making lower-alcohol beer more palatable</h2>
<p>Low-alcohol beer in the U.S. long has suffered from an image problem – namely, the perception that low- and no-alcohol brews taste bad. (And, let’s be honest, many do.)</p>
<figure class="align-right ">
<img alt="An ad for Budweiser depicts a psychic over a crystal ball with a Budweiser bottle in it." src="https://images.theconversation.com/files/411956/original/file-20210719-25-10fjn8n.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/411956/original/file-20210719-25-10fjn8n.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=950&fit=crop&dpr=1 600w, https://images.theconversation.com/files/411956/original/file-20210719-25-10fjn8n.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=950&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/411956/original/file-20210719-25-10fjn8n.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=950&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/411956/original/file-20210719-25-10fjn8n.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1193&fit=crop&dpr=1 754w, https://images.theconversation.com/files/411956/original/file-20210719-25-10fjn8n.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1193&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/411956/original/file-20210719-25-10fjn8n.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1193&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Budweiser has pulled off what some might call an act of wizardry: a low-alcohol beer produced in huge volumes with a relatively inoffensive taste.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/menu-for-budweiser-reads-drink-budweiser-americas-social-news-photo/179348042?adppopup=true">Jim Heimann Collection via Getty Images</a></span>
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<p>That’s because the brewing process <a href="https://doi.org/10.3390/pr8111382">can be especially complicated</a> for low- or no-alcohol ferments, which has made it difficult to brew high-quality, low-alcohol beer that tastes good. <a href="http://mentalfloss.com/article/12940/scientific-reasons-respect-light-beer">Some even say</a> that Budweiser isn’t given nearly enough credit for brewing a consistent, relatively palatable, low-alcohol product at such a big scale.</p>
<p>But in recent years, <a href="https://doi.org/10.3390/pr8111382">several studies</a> <a href="https://doi.org/10.1007/978-3-030-41654-6_7">have been dedicated</a> to improving the production protocols and flavor of low-alcohol beer. Although brewing <a href="https://www.smithsonianmag.com/history/the-beer-archaeologist-17016372/">is an ancient art</a>, it has also shown <a href="https://innovationmanagement.se/2018/05/01/the-innovation-that-fuels-the-craft-brew-revolution/">impressive adaptability</a> as times and technology have changed.</p>
<h2>The state of the art</h2>
<p>Combine the better taste with low-alcohol beer’s real or perceived health benefits, and <a href="https://www.reuters.com/article/us-beverages-alcohol/big-brewers-see-strong-potential-for-weak-beer-idUSKCN0ZT0FB">there’s a real niche developing</a> for the style.</p>
<p>That doesn’t mean standard-alcohol – and even high-alcohol – beers are going anywhere anytime soon. Among craft brewers and craft drinkers, IPAs remain the <a href="https://www.brewersassociation.org/insights/beer-style-growth-may-not-matter-brand/">most prominent beer style by far</a>: Over 2,000 brands make and sell them.</p>
<p>Yet the craft brewing industry is increasingly aware of these shifts in drinker preferences and the social benefits of <a href="https://www.youtube.com/watch?v=cdaP7RAc_I8&amp;amp;amp;list=PLSfGHGA7VwdF7WNAfhPFv2RDI02ISLga5&amp;amp;amp;index=40">moderating alcohol intake</a>. Recent trends toward appreciating beer with no or low alcohol <a href="https://wellbeingbrewing.com/pages/our-values">make space for moderate or nondrinkers to participate</a> in the craft beer movement.</p>
<figure class="align-center ">
<img alt="Six-packs of beer for sale in a refrigerator." src="https://images.theconversation.com/files/411968/original/file-20210719-25-g8ckqi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/411968/original/file-20210719-25-g8ckqi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/411968/original/file-20210719-25-g8ckqi.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/411968/original/file-20210719-25-g8ckqi.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/411968/original/file-20210719-25-g8ckqi.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/411968/original/file-20210719-25-g8ckqi.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/411968/original/file-20210719-25-g8ckqi.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<span class="caption">Lagunitas’ DayTime IPA – which has 4% ABV – is part of a shift among smaller brewers to offer something for everyone.</span>
<span class="attribution"><a class="source" href="https://www.gettyimages.com/detail/news-photo/lagunitas-beer-is-offered-for-sale-on-may-4-2017-in-chicago-news-photo/678733830?adppopup=true">Scott Olson/Getty Images</a></span>
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<p>Now, thanks to the work of food and fermentation scientists, the creativity of brewers and the willingness of consumers to keep experimenting, the list of options that have lower-than-average alcohol and that are actually tasty is growing. </p>
<p>German beer giant Beck’s nonalcoholic lager and Athletic Brewing’s <a href="https://www.nny360.com/artsandlife/columns/beerguy/beer-nerd-athletic-s-run-wild-ipa-is-a-lot-better-than-na-beer-has/article_e2ccdc9d-ac2c-5a98-9308-cd6bd86078f1.html">Run Wild nonalcoholic IPA</a> are just two examples of how breweries large and small are trying to tap into the nonalcoholic beer market.</p>
<p>[<em>Over 100,000 readers rely on The Conversation’s newsletter to understand the world.</em> <a href="https://theconversation.com/us/newsletters/the-daily-3?utm_source=TCUS&utm_medium=inline-link&utm_campaign=newsletter-text&utm_content=100Ksignup">Sign up today</a>.]</p>
<p>Meanwhile, most craft brewers now offer some kind of “<a href="https://www.craftbeer.com/craft-beer-muses/session-beers">session beer</a>” – so called because, thanks to their lower alcohol content, they’re suitable for longer drinking sessions. Sales of session IPAs, for instance, <a href="https://www.craftbeer.com/craft-beer-muses/makes-ipa-still-popular">increased 199% in 2015</a>.</p>
<p>Even beyond session IPAs, lower-alcohol brews across styles – gose, Helles lager, Kölsch, saison, and pilsner – are <a href="https://vinepair.com/wine-blog/in-defense-of-the-session-ipa-a-trend-that-doesnt-need-to-die/">increasingly visible, available and popular</a> in both pint <a href="https://www.growlermag.com/we-blind-tasted-31-na-beers-and-found-7-we-actually-enjoyed/">and</a> <a href="https://www.esquire.com/food-drink/drinks/g1569/good-alcoholic-beers/">print</a>, which is just another way of saying that, now more than ever, you can readily find a low-alcohol or nonalcoholic brew in your glass or on your screen.</p><img src="https://counter.theconversation.com/content/163631/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Colleen C. Myles does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Thanks to shifting tastes and improvements to the brewing process, more craft brewers are offering low-alcohol and nonalcoholic options – and are going toe to toe with America’s beer giants.Colleen C. Myles, Associate Professor of Geography, Texas State UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1249232019-11-07T13:46:54Z2019-11-07T13:46:54ZCraft beer is having an identity crisis, as big breweries muscle in on the market<figure><img src="https://images.theconversation.com/files/300611/original/file-20191107-10930-1t8yq47.jpg?ixlib=rb-1.1.0&rect=711%2C36%2C4620%2C2935&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/hostonusjun-252016various-bottles-craft-microbrews-ipas-446130109">Trong Nguyen/Shutterstock.</a></span></figcaption></figure><p>The British beer industry has grown at an astonishing rate over the past decade, with the number of new breweries <a href="https://www.uhy-uk.com/news-events/news/uk-craft-beer-boom-sobers-up-adds-just-eight-breweries-versus-390-the-previous-year/">constantly on the rise</a>. In the last eight years, there has been a <a href="https://www.thedrinksbusiness.com/2018/10/this-chart-shows-how-the-uks-beer-market-has-changed-in-eight-years/">20% increase</a> in trademarks for beer in the UK. And as of 2019, the UK has the second largest number of breweries per person in the world (<a href="https://www.foodandwine.com/beer/country-most-breweries-capita">behind New Zealand</a>). It’s estimated that the overall number of breweries in the UK <a href="https://www.uhy-uk.com/news-events/news/uk-craft-beer-boom-sobers-up-adds-just-eight-breweries-versus-390-the-previous-year/">reached 2,274</a> at the end of 2018.</p>
<p>This British beer craze is undeniably linked to the global craft beer movement, which originated in the US <a href="https://www.craftbeer.com/craft-beer-muses/the-roots-of-american-craft-brewing">in the 1970s</a> and has spread <a href="https://www.beveragedaily.com/Article/2017/03/20/Top-10-craft-beer-producing-countries">across markets</a> including Italy, Spain, Australia and Canada. Yet, when asked what “craft beer” is, no one knows. The perceptions of producers don’t necessarily align with those of consumers. And that could spell trouble for craft brewers.</p>
<h2>Trouble brewing</h2>
<p>There’s now early evidence that the growth of the sector is stagnating, as the number of new breweries opening has <a href="https://www.thedrinksbusiness.com/2019/04/is-the-craft-beer-gold-rush-over-uk-brewery-openings-plummet-in-2018/">begun to plateau</a>. According to <a href="https://www.ons.gov.uk/businessindustryandtrade/manufacturingandproductionindustry/bulletins/ukmanufacturerssalesbyproductprodcom/2018provisionalresults">the latest data</a> from the UK’s Office for National Statistics, overall beer sales dropped from £3.7 billion in 2017 to £3.2 billion in 2018. </p>
<p>There are a couple of reasons for this. Since 2015, off-trade sales (in supermarkets, bottle shops and other outlets) have accounted for <a href="https://www.statista.com/statistics/309046/on-and-off-trade-beer-sales-share-in-the-united-kingdom-uk/">more than 50%</a> of overall beer sales. Meanwhile, <a href="https://beerandpub.com/statistics/pub-numbers/">as pubs have continued to close</a> across the UK over the past 20 years, there’s been <a href="https://beerandpub.com/statistics/uk-beer-market/">a decline</a> in sales of beer consumed on premises. This puts extra pressure on craft brewers to find other routes-to-market for their products – including international markets. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/300695/original/file-20191107-10935-1nde8bx.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/300695/original/file-20191107-10935-1nde8bx.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=377&fit=crop&dpr=1 600w, https://images.theconversation.com/files/300695/original/file-20191107-10935-1nde8bx.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=377&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/300695/original/file-20191107-10935-1nde8bx.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=377&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/300695/original/file-20191107-10935-1nde8bx.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=474&fit=crop&dpr=1 754w, https://images.theconversation.com/files/300695/original/file-20191107-10935-1nde8bx.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=474&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/300695/original/file-20191107-10935-1nde8bx.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=474&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
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<p>Yet, according to the <a href="https://toolbox.siba.co.uk/documents/Facts%20&%20Figures/SIBA%20British%20Craft%20Beer%20Report/The%20SIBA%20British%20Craft%20Beer%20Report.pdf">latest report</a> by the Society of Independent Brewers (SIBA), more than half of their surveyed members were not exporting, while those that were exporting, sent only 1% of their total production abroad. </p>
<p>In fact, in 2017 the UK <a href="https://www.statista.com/statistics/302734/exports-of-beer-total-volume-in-the-united-kingdom-uk/">exported 560m litres</a> of beer – that’s less than half the amount of beer imported in the country the same year (<a href="https://www.statista.com/statistics/302737/imports-of-beer-total-volume-in-the-united-kingdom-uk/">1,005m litres</a>), which shows that British breweries face fierce competition from imported beer as well. In this competitive environment, the overall market share of craft beer in the UK still <a href="https://toolbox.siba.co.uk/documents/Facts%20&%20Figures/SIBA%20British%20Craft%20Beer%20Report/The%20SIBA%20British%20Craft%20Beer%20Report.pdf">remains below 5%</a>. </p>
<p>Despite these challenges, there are still plenty of opportunities for British brewers to attract consumers away from industrial and imported beers and grow the thirst for British craft beer abroad. That is, provided there can be some agreement on what “craft beer” is. </p>
<h2>The craft beer battle</h2>
<p>In contrast to other countries, such as the US and Italy, there has never been a broadly accepted definition or classification of “craft beer” in the UK. Despite <a href="https://www.brewdog.com/blog/defining-craft-beer-at-siba">heated debates</a> between the <a href="https://www.camra.org.uk/join/">Campaign for Real Ale</a> (CAMRA) and Scottish company BrewDog, and <a href="https://boakandbailey.com/2016/04/what-happened-to-the-united-craft-brewers/">efforts by some major players</a> to lead the discussion on the definition and values of craft beer, there’s still no clarity on what the term specifies, or what kind of quality or criteria must be met. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/300627/original/file-20191107-10940-1qdoayd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/300627/original/file-20191107-10940-1qdoayd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/300627/original/file-20191107-10940-1qdoayd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/300627/original/file-20191107-10940-1qdoayd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/300627/original/file-20191107-10940-1qdoayd.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/300627/original/file-20191107-10940-1qdoayd.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/300627/original/file-20191107-10940-1qdoayd.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">What even is ‘craft’?</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/generating-ideas-his-brewery-thoughtful-young-243234397?src=fd45cde4-52df-43f9-8928-ec6aa8147a68-1-9">G-Stock Photo/Shutterstock.</a></span>
</figcaption>
</figure>
<p>One possible reason for this could be that attempts at collective action by British brewers have been highly fragmented, with multiple brewers’ associations and networks sometimes perceived by those in the industry to serve opposing interests. For example, SIBA and the United Craft Brewers both share the same vision about the craft beer market but serve smaller versus larger players, respectively. </p>
<p>Depending on whether you speak to a consumer, a smaller brewer or a larger one, the “craft” label holds very different meanings. </p>
<h2>The producers’ perspective</h2>
<p><a href="https://pureportal.strath.ac.uk/en/publications/exploring-the-uk-micro-brewing-industry-factors-facilitating-and-">Our research</a> with brewers across Scotland and England found that those who identify themselves as “craft” brewers:</p>
<ul>
<li><p>Are typically beer aficionados who have decided to transform their enthusiasm into a living and set up their own businesses – with the vast majority being micro-businesses employing fewer than ten people.</p></li>
<li><p>Are motivated by a lack of tolerance towards the standardised, predictable beer flavours that have so far dominated the market.</p></li>
<li><p>Tend to use traditional – instead of industrial – methods to make beer and experiment with different types of beer, hop varieties, old or quirky recipes and unusual or exotic ingredients.</p></li>
</ul>
<p><a href="https://issuu.com/societyofindependentbrewers/docs/the_siba_british_craft_beer_report?e=28684874/68424516">Research conducted</a> by SIBA among their members identifies that one of the key issues faced by micro craft breweries is the fact that big national and international brewers have begun mass-producing their own “crafty” products. </p>
<p>In recent years, beer industry behemoths have <a href="https://www.theguardian.com/business/2017/oct/09/bitter-rivalry-conflict-brews-as-craft-beer-makers-take-on-big-firms">aggressively sought to capitalise</a> on the popularity of craft beer – either by establishing their own microbreweries, or acquiring existing ones and marketing them separately using large budgets unavailable to smaller firms.</p>
<p>The smaller brewers in our research also questioned whether pioneers of the craft beer movement, which have now grown into large businesses, still classify as “craft” breweries. Discussions over size and “selling-out” have become key dimensions of the craft beer debate, from the perspective of producers.</p>
<h2>The consumers’ perspective</h2>
<p>Any discussion about what craft beer stands for must also include the people who drink it, given that changing consumer demands and habits have helped fuel the craft beer movement since its inception. We conducted a <a href="https://pureportal.strath.ac.uk/en/publications/craft-as-a-contested-term-authenticity-and-meaning-among-british-">series of in-depth interviews</a> with British consumers, who had various levels of beer knowledge and found that they considered “craft beer” to be “the most misused and misunderstood term in the whole beer industry”. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/300629/original/file-20191107-10919-1o4r9k0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/300629/original/file-20191107-10919-1o4r9k0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/300629/original/file-20191107-10919-1o4r9k0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/300629/original/file-20191107-10919-1o4r9k0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/300629/original/file-20191107-10919-1o4r9k0.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/300629/original/file-20191107-10919-1o4r9k0.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/300629/original/file-20191107-10919-1o4r9k0.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Discerning tastes.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/woman-drink-beer-beverage-hang-out-567977533?src=40379d1e-5c47-4b16-b5aa-fed16e207661-1-23">Rawpixel.com/Shutterstock.</a></span>
</figcaption>
</figure>
<p>This shows that British consumers are already very confused about what craft beer stands for. When asked what they think craft beer is, our respondents highlighted not only the independence and size of the business making it, but also the scale of production and nature of ownership. This aligns with the unique, exclusive food and drink experiences that consumers increasingly desire. </p>
<p>Our research showed that consumers define craft beer not only as a product, but as a process. For consumers, the term “craft” carries connotations and values relating to the producer, the ingredients, the method, the unique artistic skills instilled in the process, as well as the constant novelty. </p>
<p>In the UK, the term “craft beer” has so many associations that there’s a danger it may end up meaning nothing at all. This would jeopardise the future of a promising sector, as the UK has a long history of brewing and the potential to become a key player in the global craft beer market. That’s why it’s now crucial to establish a well-defined identity and clear standards, that would signal the superior quality and craftsmanship of British craft beer to consumers across the world.</p><img src="https://counter.theconversation.com/content/124923/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In the UK today, the term ‘craft beer’ has so many associations that there’s a danger it may end up meaning nothing at all.Maria Karampela, Lecturer in Marketing, University of Strathclyde Juho Pesonen, Head of Research at the Centre for Tourism Studies, University of Eastern FinlandNadine Waehning, Course Leader for MSc suite and Lecturer in Marketing, York St John UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1220962019-08-27T09:53:47Z2019-08-27T09:53:47ZBeer has a sexism problem and it goes much deeper than chauvinistic marketing<figure><img src="https://images.theconversation.com/files/289103/original/file-20190822-170918-705n6c.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">
</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/cheers-my-friends-three-handsome-men-658555867?src=e0lRqQKxjkcNh2tdmi_BFg-1-1">Shutterstock</a></span></figcaption></figure><p>When CAMRA, the UK real ale campaign group, decided to <a href="https://www.camra.org.uk/press_release/camra-bans-discriminatory-beers-at-its-flagship-festival/">ban beers with sexist names and labels</a> from the Great British Beer Festival this summer, the responses were quite predictable. Liberal newspaper <a href="https://www.theguardian.com/food/2019/aug/07/camra-calls-time-on-sexist-names-at-great-british-beer-festival">The Guardian</a> celebrated the decision to call time on drinks that depict outdated, sexualised and derogatory images of women. Tabloid paper <a href="https://www.thesun.co.uk/news/9697948/campaign-for-real-ale-dubbed-humourless-banning-sexist-beers/">The Sun</a>, by contrast, said that CAMRA lacks a “sense of humour”, listing a series of beers, complete with images, that would “struggle to escape the PC brigade”. </p>
<p>Like the reaction to Berkeley city council’s <a href="https://theconversation.com/the-uproar-over-taking-man-out-of-manhole-120821">decision to rename “manholes” as “maintenance holes”</a>, gendered images and language are divisive topics. The evidence, however, suggests that the language and images we use in everyday life shape the way we think about who belongs in a particular social setting. And, more importantly, who doesn’t.</p>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/288756/original/file-20190820-170931-y5g5cl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/288756/original/file-20190820-170931-y5g5cl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/288756/original/file-20190820-170931-y5g5cl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=600&fit=crop&dpr=1 600w, https://images.theconversation.com/files/288756/original/file-20190820-170931-y5g5cl.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=600&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/288756/original/file-20190820-170931-y5g5cl.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=600&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/288756/original/file-20190820-170931-y5g5cl.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=754&fit=crop&dpr=1 754w, https://images.theconversation.com/files/288756/original/file-20190820-170931-y5g5cl.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=754&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/288756/original/file-20190820-170931-y5g5cl.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=754&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">One of the beers banned by CAMRA.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/ink_mama/6371168889/">Amber DeGrace</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<p>CAMRA explained its decision as a ban on “discriminatory beers”. The intention was to open beer drinking up to women who would otherwise feel alienated by sexist advertising. There is nothing inherently male about beer, and no reason why women shouldn’t drink it. So diversifying beer culture seems like good business sense for brewers. </p>
<p>Women make up only 17% of beer drinkers in the UK so there is clearly an untapped market here. According to <a href="https://dealatis.org.uk/wp-content/uploads/2018/05/Gender-Pint-Gap-Report_Dea-Latis_May-2018.pdf">research conducted by YouGov for Dea Latis</a>, a group of women brewers, advertising is the single largest barrier to more women drinking beer. So, from this perspective, banning sexist marketing seems like a good idea.</p>
<h2>Industry-wide inequality</h2>
<p>While banning sexist beer names and pump clips might help to change the culture of drinking, more needs to be done to achieve gender equality in the brewing industry itself. There have certainly been moves to open up brewing to greater diversity. The <a href="https://www.pinkbootssociety.org/">Pink Boots Society</a> has promoted women in brewing since the mid 2000s, and the <a href="https://twitter.com/femalefestival?lang=en">FemAle beer festival</a> has been celebrating women in brewing since 2014. </p>
<p>Despite this, <a href="https://journals.sagepub.com/doi/10.1177/1469540518806956">academic research</a> suggests that significant cultural barriers to women participating in brewing remain. <a href="https://www.taylorfrancis.com/books/e/9781315205861/chapters/10.4324/9781315205861-8">Research</a> that <a href="https://www.birmingham.ac.uk/schools/business/staff/profile.aspx?ReferenceId=57322">Scott Taylor</a>, <a href="https://people.uwe.ac.uk/Person/NeilSutherland">Neil Sutherland</a> and I conducted in the craft brewing industry, with women from the US, the UK and Sweden, found several persistent barriers to women getting into and progressing in the beer business.</p>
<p>Sexual harassment is an issue in a range of industries and brewing is no exception. Ranging from inappropriate touching to unsolicited sexual advances and objectifying comments, several of the women we interviewed reported sexual harassment at work. The regular consumption of alcohol as a part of everyday working life made harassment even more likely. </p>
<p>For anyone in marketing and sales, spending time in bars and pubs is a crucial part of the job, so dealing with men under the influence is a part of everyday work. Many find that their working life regularly overlaps with other people’s social lives – and a “professional context” is far from guaranteed.</p>
<p>The hours involved in the brewing industry also create another barrier for women, who still shoulder most responsibility for <a href="https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/articles/womenshouldertheresponsibilityofunpaidwork/2016-11-10">unpaid domestic work and childcare</a>. Unpredictable or anti-social working hours are more likely to impact on women’s careers than men’s. </p>
<p>The material process of brewing means that it doesn’t always fit well into a standard nine-to-five working day. Depending on the type of beer being brewed, or the nature of the ingredients, getting the beer from raw material into the fermentation vessels, can stretch the working day from 5am to nearly midnight, as one brewer told us. Another explained: “The raw materials are in charge … I thought I was going to be home at a certain time, and I wasn’t. We had to stick it out and babysit our beer and make sure that it was OK.” </p>
<p>As many breweries, especially in the growing craft beer scene, are small, brewers have to see a process through from start to finish. This can clash with the responsibilities placed on women outside of work. As pay in the industry is relatively low, outsourcing these domestic responsibilities is not always an option.</p>
<h2>Inadvertent sexism</h2>
<p>The design of brewing equipment also creates barriers. As women are, on average, a different shape and size than men, the design of equipment can create additional challenges for women in the industry, a point that sociologist <a href="https://www.jstor.org/stable/1394914?seq=1#page_scan_tab_contents">Cynthia Cockburn</a> made back in the 1980s. Several of the brewers we spoke to discussed the physical demands of brewing, and recurrent back injuries. Of course, these affect men too, but have a disproportionate impact on women, as equipment is designed with men’s bodies in mind. </p>
<p>Brewers must master all aspects of the process and men can inadvertently exclude women from career progress by trying to help them. As one brewer told us, when she started out she faced “a huge hurdle of getting over everybody’s instinctual chivalry, which wasn’t allowing me to do my job. There was never a problem about it, but I would go: ‘Okay, I’ll lift that,’ and they’d be like: ‘No, are you sure? I’ll lift it.’ And I’d be like: ‘yes, I’m really sure.’” Overcoming this inadvertent sexism was another barrier for women wanting to get on in the industry because they had to constantly prove themselves in a way that men didn’t.</p>
<p>These kinds of everyday discrimination continue to create barriers to women working in brewing and suggest that genuine diversity in the beer business will require more than a change of pump-clips and advertising. Despite this, our research did suggest that changes in the industry, and particularly the rise of craft brewing, has created new opportunities for women. </p>
<p>As the craft beer scene is focused on innovation, experimentation and aesthetic taste, women can position themselves as disruptors in the industry, challenging the “male, pale and stale” image that has <a href="https://dspace.lboro.ac.uk/dspace-jspui/bitstream/2134/26539/3/26539.pdf">fenced real ale off as a masculine space</a>. By bringing new styles of beer, and new methods of production, women can claim a place in a business that has been dominated by men for the last 400 years.</p><img src="https://counter.theconversation.com/content/122096/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Chris Land does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Beers with sexist names and labels were banned from the Great British Beer Festival this summer.Chris Land, Professor of Work and Organisation, Anglia Ruskin UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1128972019-03-20T13:14:08Z2019-03-20T13:14:08ZSmall brewers show how craft principles could reshape the economy – but they’re under threat<figure><img src="https://images.theconversation.com/files/264605/original/file-20190319-60995-12b1nsh.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">shutterstock</span> </figcaption></figure><p>Our economy currently relies heavily on unsustainable industrial principles of mass scale, never-ending growth and throwaway consumerism. The transition to a sustainable economy, then, requires a shift in how we think about production.</p>
<p>In contrast to industrial production, craft production prioritises local production, human skill and excellence. Although craft principles were cast aside as industries were modernised, a revival is taking place. Examples of craft revival are visible in many sectors, ranging from <a href="https://press.princeton.edu/titles/10960.html">butchering</a> to <a href="https://www.patagonia.com/worn-wear-repairs/">textile production</a>, but one of the most illustrative examples comes from the booming craft beer sector. </p>
<p>In the Netherlands, about 1,000 breweries existed at the beginning of the 19th century. Following the industrial revolution, there was a dramatic switch to the mass production of one beer style: pilsner. Only 13 breweries, all now using industrial principles of production, remained <a href="https://journals.sagepub.com/doi/full/10.1177/0001839218817520">by 1980</a> and 90% of the market was controlled by the four largest players. But since then, a revival of craft production has fuelled a dramatic resurgence of the brewery population. Today, there are well <a href="https://www.nederlandsebiercultuur.nl/brouwerijen/grafiek-aantal-brouwerijen">over 300 breweries</a> again.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/264842/original/file-20190320-93044-n0zpfm.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/264842/original/file-20190320-93044-n0zpfm.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=764&fit=crop&dpr=1 600w, https://images.theconversation.com/files/264842/original/file-20190320-93044-n0zpfm.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=764&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/264842/original/file-20190320-93044-n0zpfm.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=764&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/264842/original/file-20190320-93044-n0zpfm.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=960&fit=crop&dpr=1 754w, https://images.theconversation.com/files/264842/original/file-20190320-93044-n0zpfm.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=960&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/264842/original/file-20190320-93044-n0zpfm.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=960&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">The Brewer. Designed and engraved in the 16th century by J Amman.</span>
<span class="attribution"><a class="source" href="https://en.wikipedia.org/wiki/File:The_Brewer_designed_and_engraved_in_the_Sixteenth._Century_by_J_Amman.png">Wikimedia Commons</a></span>
</figcaption>
</figure>
<p>The Netherlands is not the only country where craft brewing has been revived. In 11 of the biggest beer producing nations, the number of breweries has <a href="https://www.palgrave.com/br/book/9783319582344">grown by a factor of five</a> in recent decades. If we exclude Belgium and Germany, where industrialisation <a href="https://www.palgrave.com/br/book/9783319582344">had less of an effect</a> on the traditional brewing population, the factor is even greater: 23. The US brewing population, for instance, grew from a mere 89 craft breweries in 1978 to well over <a href="https://www.brewersassociation.org/statistics/number-of-breweries/">6,000 today</a>.</p>
<h2>Challenges</h2>
<p>Part of this dramatic craft renaissance is explained by a change in demand. Fuelled by nostalgia and an anti-mass production sentiment, the market demand for local, authentic products is growing, most notably in the <a href="https://www.businessinsider.com/the-demand-for-local-food-is-growing-2017-4?international=true&r=US&IR=T">food industry</a>. </p>
<p>Yet demand does not change in isolation. It requires producers that are willing and able to follow alternative production principles and educate consumers. A <a href="https://journals.sagepub.com/doi/full/10.1177/0001839218817520">recent study</a> of the Dutch beer brewing industry found that the increasing success of the craft movement was in large part driven by a growing and eclectic group of beer enthusiasts that devoted themselves to becoming brew masters, regenerated craft brewing techniques and revived a declining industry in the process. The craft beer revival shows that a transition away from unsustainable, industrial production is possible and desirable. </p>
<p>But these crafty change-makers face challenges. The main issue for any incipient craft movement is to shake off the idea that craft is an outdated mode of production, strictly adhering to historic methods and recipes.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/264372/original/file-20190318-28492-5foya2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/264372/original/file-20190318-28492-5foya2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=338&fit=crop&dpr=1 600w, https://images.theconversation.com/files/264372/original/file-20190318-28492-5foya2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=338&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/264372/original/file-20190318-28492-5foya2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=338&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/264372/original/file-20190318-28492-5foya2.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=424&fit=crop&dpr=1 754w, https://images.theconversation.com/files/264372/original/file-20190318-28492-5foya2.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=424&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/264372/original/file-20190318-28492-5foya2.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=424&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Various bottles of craft, microbrews and IPAs.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/hostonusjun-252016various-bottles-craft-microbrews-ipas-446130109">Trong Nguyen/Shutterstock.com</a></span>
</figcaption>
</figure>
<p>The craft beer revolution, for example, was not possible in places such as Germany and Belgium, which have maintained historic beer brewing traditions. There, breweries tend to strictly follow narrow interpretations of what traditional craft production means and have expectations about how and where craft skill should be applied, such as following age-old community specific recipes. This conception of “craft” constrains innovation – and indeed both countries lack the rich innovative craft brewing scene that has developed elsewhere. </p>
<p>Successful craft movements, on the other hand, smartly harness the power of localism, authenticity and nostalgia without getting stuck in the past. This attitude was <a href="https://journals.sagepub.com/doi/full/10.1177/0001839218817520">clearly expressed</a> by one Dutch brewer: </p>
<blockquote>
<p>I have always been bothered by the false romanticism that beer lovers like to hear and the ordinary reality of beer brewing. Beer brewing is a craft. You write your own recipes. There is no such thing as old recipes. All beers that were brewed 100 years ago are disgusting. </p>
</blockquote>
<p>This is an extreme opinion: generally traditions are navigated <a href="https://www.palgrave.com/us/book/9783030021634">more respectfully</a>. Through craft, brewers stress their traditional, independent background while experimenting and making entirely new beers. It’s important to open up the definition of craft and to find a productive balance between tradition and innovation.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/264847/original/file-20190320-93051-qkla48.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/264847/original/file-20190320-93051-qkla48.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/264847/original/file-20190320-93051-qkla48.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/264847/original/file-20190320-93051-qkla48.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/264847/original/file-20190320-93051-qkla48.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/264847/original/file-20190320-93051-qkla48.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/264847/original/file-20190320-93051-qkla48.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Microbrewery bar.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/currumbin-gold-coast-queensland-australia-january-1043495074">Alizada Studios/Shutterstock.com</a></span>
</figcaption>
</figure>
<h2>Craft-washing</h2>
<p>Another challenge for the modern craft movement is the reality that any organisation can be bought. Although initially craft brewers were able to build a separate market for craft beer and resist the lure of big money, incumbent industrial brewers are now <a href="https://www.forbes.com/sites/garystoller/2018/03/20/craft-breweries-dominate-the-top-50-but-guess-which-giants-rule-the-beer-market/#7d31b75edcad">taking over successful craft breweries</a> at increasing speed. </p>
<p>In the Netherlands, one of the most successful craft breweries, De Molen in Bodegraven, <a href="https://www.rtlz.nl/business/artikel/4595126/bavaria-neemt-craftbrouwerij-de-molen-helemaal-over">has recently been acquired by Bavaria</a>, one of the four large incumbent brewers. Bavaria also owns the Dutch abbey brewery, De Koningshoeven, known for its authentic Trappist beer, while Heineken acquired the oldest still running brewery, Brand, in the early 2000s. This signals a new era of consolidation and raises questions about the long-term resilience of the craft movement.</p>
<p>There is more to this than simple reconcentration of market power: businesses are showing <a href="https://www.tandfonline.com/doi/full/10.1080/00076791.2016.1224234">an interest in heritage</a>. This is because consumers increasingly look for <a href="https://hbr.org/product/authenticity-what-consumers-really-want/2272-HBK-ENG">authenticity</a>. The past delivers an impression of this, shrouded as it is in a mystical aura of nostalgia. Companies therefore use the past as a coat of paint, giving their products an authentic feel. What businesses need, the past provides. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/264844/original/file-20190320-93039-12l6jpw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/264844/original/file-20190320-93039-12l6jpw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/264844/original/file-20190320-93039-12l6jpw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/264844/original/file-20190320-93039-12l6jpw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/264844/original/file-20190320-93039-12l6jpw.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/264844/original/file-20190320-93039-12l6jpw.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/264844/original/file-20190320-93039-12l6jpw.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">An industrial brewery.</span>
<span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/brewery-interior-equipments-191643209">Momente/Shutterstock.com</a></span>
</figcaption>
</figure>
<p>And companies that lack longevity themselves can buy it. New manufacturers regularly <a href="https://www.nytimes.com/2006/07/12/business/worldbusiness/12auto.html">purchase older businesses</a> to root their products further into the past, branding their newly bought tradition with slogans such as “since 1820”. For the same reason, companies are buying their way into craft. They capitalise on the market’s growing thirst for authenticity by creating the impression of craft production using savvy advertising. Big business appears to engage in craft-washing. They want the craft brand – but whether they want craft values is another question.</p>
<h2>A new economy</h2>
<p>This is key – because the practices and values of craftsmanship correspond well with the requirements for a sustainable economy. If we can redefine craftsmanship in a form that is <a href="https://craftsmanship.net/the-future-is-handmade/">built for the future</a>, instead of being simply a nostalgic eulogy to the past, we can create an economy based on sustainability, durability and excellence.</p>
<p>Craft could provide the means and values for a sustainable society, both socially and environmentally. In the US, the craft beer boom led to a dramatic <a href="https://www.theatlantic.com/business/archive/2018/01/craft-beer-industry/550850/">increase in employment</a> during a time that beer consumption declined. And producing <a href="https://www.bloomsbury.com/us/fewer-better-things-9781632869647/">fewer, better, things</a> can have environmental benefits over mass-produced products with inherently short life cycles. Craft skills support important practices of <a href="https://www.latimes.com/local/lanow/la-me-typewriter-repairman-20190206-story.html">recycling and repairing</a>. </p>
<p>In short, an updated notion of craftsmanship provides <a href="https://craftsmanship.net">the architecture needed</a> for a sustainable, innovative economy. Entrepreneurs of the future are those that redefine our relationship with materials. They are the craftspeople who <a href="https://www.theguardian.com/lifeandstyle/2018/apr/28/new-beers-made-from-leftover-bread-marks-and-spencer-adnams">make beer out of stale bread</a>, <a href="https://fruitleather.nl/">leather from leftover fruit</a> or who fashion <a href="https://www.dezeen.com/2018/11/15/oskar-metsavaht-pirarucu-fish-skin-sustainable-fashion/">garments from fish skin</a>.</p>
<p>Whether these craft principles will shape the new economy largely depends on modern corporations truly infusing them into their organisations and going beyond craft-washing. Corporate success is historically based on choices that contradict craft principles, which means that corporations are often at a loss when it comes to meaningfully enacting any of these ideas. </p>
<p>This likely means that a transition has to be sustained from the bottom: in the microbreweries, urban gardens, maker spaces and repair cafes. The people in these spaces are not just making. They are creating the mentality needed for a sustainable economy. We need more makers, not managers.</p><img src="https://counter.theconversation.com/content/112897/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Maikel Kuijpers receives funding from The Netherlands Organisation of Scientific Research (NWO). </span></em></p><p class="fine-print"><em><span>Catalin Popa receives funding from The Netherlands Organisation for Scientific Research (NWO).
Catalin Popa is a member of Democracy in Europe Movement 2025 (DiEM25).
</span></em></p><p class="fine-print"><em><span>Jochem Kroezen does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The practices and values of craftsmanship correspond well with the requirements for a sustainable economy. But they’re threatened by industry.Maikel Kuijpers, Assistant Professor of the Archaeology of Early Europe, Leiden UniversityCatalin Popa, Postdoctoral Researcher in Archaeology, Leiden UniversityJochem Kroezen, Lecturer in International Business, Cambridge Judge Business SchoolLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/1104882019-02-12T11:46:34Z2019-02-12T11:46:34ZDrinkers prefer Big Beer keeps its hands off their local craft brews<p><a href="https://www.theatlantic.com/business/archive/2018/01/craft-beer-industry/550850/">Craft beer’s popularity</a> has exploded in the U.S. in recent decades, leading to <a href="https://www.brewersassociation.org/statistics/national-beer-sales-production-data/">soaring production</a> and the creation of <a href="https://www.craftbeer.com/editors-picks/craft-beer-growth-statistics-for-2017-released-by-the-brewers-association">thousands of new breweries</a>. </p>
<p>Much of that growth <a href="https://www.forbes.com/sites/greatspeculations/2015/06/29/does-the-declining-u-s-beer-trend-spell-doom-for-brewers/#74e4f40a189e">has come at the expense</a> of traditional brewing giants like Anheuser-Busch InBev and MillerCoors. </p>
<p>So, naturally, these macro brewers <a href="https://vinepair.com/craft-beer-sales/">have been trying to get a piece of the action</a> by buying up their craft counterparts. Examples include AB InBev’s 2011 purchase of Goose Island Brewery and Tokyo-based Sapporo’s 2017 acquisition of Anchor Brewing – America’s oldest craft brewery.</p>
<p>But since a <a href="https://theconversation.com/fed-up-with-big-beers-incursion-independent-craft-breweries-push-back-90512">major appeal of craft beer</a> – and a drinker’s willingness to pay a premium for a pint – is its localness and non-bigness, does being what I dub “crafty” beer owned by Big Beer spoil the brew? </p>
<p>That’s a question <a href="https://dx.doi.org/10.2139/ssrn.3244002">I ask in the Ph.D. dissertation</a> I am writing for a degree in agricultural and resource economics. I wanted to know whether drinkers are willing to pay more for beer knowing that it isn’t actually independently and locally produced. </p>
<p>In my <a href="https://doi.org/10.1017/jwe.2018.38">most recent research</a>, I directly tapped consumers for answers by conducted a “choice experiment” at a bar specializing in craft beer.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/258351/original/file-20190211-174864-1nyqlvb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/258351/original/file-20190211-174864-1nyqlvb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=400&fit=crop&dpr=1 600w, https://images.theconversation.com/files/258351/original/file-20190211-174864-1nyqlvb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=400&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/258351/original/file-20190211-174864-1nyqlvb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=400&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/258351/original/file-20190211-174864-1nyqlvb.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=503&fit=crop&dpr=1 754w, https://images.theconversation.com/files/258351/original/file-20190211-174864-1nyqlvb.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=503&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/258351/original/file-20190211-174864-1nyqlvb.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=503&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Tokyo-based Sapporo acquired Anchor Brewing in 2017.</span>
<span class="attribution"><a class="source" href="https://de.wikipedia.org/wiki/Anchor_Brewing#/media/File:Anchor_Brewing_Company_brewhouse.jpg">Wikimedia Commons/WolfmanSF</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<h2>Setting the scene</h2>
<p>The scene of my experiment was a bar, University of Beer, in the college town of Davis, California, where I study. Over the course of more than a month, I recruited 301 patrons of the bar for my experiment.</p>
<p>Participants began the experiment by selecting the beer they would most like to order from the venue’s rotating list of 60 brews on tap. Then I presented them with a list of 10 randomly selected beers from the menu. </p>
<p>For each, I asked participants what they’d be willing to pay for the random beer so that they wouldn’t care whether they received it or their original selection – that is, whatever price would make them happy with either choice. </p>
<p>I also randomly gave some participants information about the beer’s brewery location and ownership status – such as “Brewers Association certified craft beer,” “import” or “MillerCoors.” Other participants did not receive this information for some or any of the randomly presented beers.</p>
<p>From here I was able to determine how much consumers were willing to pay for “local” or “craft” beer, but the findings were not as cut-and-dried as hypothesized.</p>
<h2>Defining ‘local’</h2>
<p>First I had to figure out <a href="https://theconversation.com/meet-the-foodies-who-are-changing-the-way-americans-eat-95621">what constitutes</a> “local.”</p>
<p>I asked participants to identify each of the random beers they viewed as local or not local. Later in the experiment, I asked them to define “local.” </p>
<p>Participant responses revealed an array of “local” qualifiers – proximity was included in most definitions but some also cited production size or brewery ownership. </p>
<p>Frequently, a participant’s definition of “local” was inconsistent with the beers they actually deemed “local.” </p>
<p>To circumvent these inconsistencies, I did not adopt a universal definition of the term. Instead, a beer was considered “local” if an individual identified it as such.</p>
<h2>Sorting for snobs</h2>
<p>I also needed to separate “beer geeks” from average consumers.</p>
<p>Not everyone is equally enthusiastic about craft beer. Some care deeply about their beer, such as where it comes from and who produces it. Others simply want something tasty. </p>
<p>I hypothesized that these different types of consumers would likely have distinct preferences for craft versus macro and local versus non-local beer. To identify and sort participants, I administered a quiz at the end of the experiment to test their knowledge of craft brewery locations and ownership.</p>
<h2>Putting a price on local beer</h2>
<p>My findings unequivocally show that consumers prefer local beer – however they define it.</p>
<p>But how much do they prefer it – that is, how much are they willing to pay extra to have a local over a non-local brew?</p>
<p>Unfortunately I have to give a boring economist’s answer: That depends. </p>
<p>On average, the “local” premium is generally worth 25 cents to 54 cents per pint. However, this premium does not apply to every local beer. Consumers have beer styles they prefer – like IPAs, pilsners and stouts – and I find that the “local” premium diminishes for beers within their preferred style. </p>
<p>For example, an IPA lover doesn’t make a distinction between a local and non-local IPA. </p>
<p>However, when she orders a sour beer, she is willing to pay 45 cents – on average – more for a local sour than a non-local sour.</p>
<p>And how about for craft beer? </p>
<p>I found that only beer geeks, and not average consumers, are willing to pay a premium for certified craft beer versus a beer of unknown ownership. The 5 percent of consumers with the most beer knowledge were willing to pay 75 cents more per pint on average, while the top 25 percent offered an extra 47 cents.</p>
<p>And, like the “local” premium, this premium diminishes within the consumer’s preferred beer style.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/258366/original/file-20190211-174894-2tudlf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/258366/original/file-20190211-174894-2tudlf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=421&fit=crop&dpr=1 600w, https://images.theconversation.com/files/258366/original/file-20190211-174894-2tudlf.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=421&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/258366/original/file-20190211-174894-2tudlf.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=421&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/258366/original/file-20190211-174894-2tudlf.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=529&fit=crop&dpr=1 754w, https://images.theconversation.com/files/258366/original/file-20190211-174894-2tudlf.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=529&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/258366/original/file-20190211-174894-2tudlf.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=529&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">A group of birding enthusiasts sample a flight of beers at the Maine Brewing Company.</span>
<span class="attribution"><a class="source" href="http://www.apimages.com/metadata/Index/Birds-and-Brews/67ca66fbf978498ca58c91e3ee178d8d/81/0">AP Photo/Robert F. Bukaty</a></span>
</figcaption>
</figure>
<h2>Are ‘crafty’ beers devalued?</h2>
<p>Finally, do “crafty” beers that are owned by Big Beer fetch the same premium as certified craft beer? Typically, no.</p>
<p>Of the Big Beer companies, I found that only Founders Brewing Company, now partially owned by Mahou San Miguel, was able to extract premiums from consumers similar to the ones independent craft brews obtained.</p>
<p>The other “crafty” beers in my study, however, couldn’t command the same premiums. In fact, I found that consumers wanted to pay $0.72 to $1.04 less per pint for a craft beers owned by other Big Beer companies relative to one owned by an independent brewery. </p>
<p>So unless you’re a beer geek like me, you probably don’t care if your artisanal ale is “Brewer’s Association certified craft.” But beer geek or not, when drinking your favorite type of ale or lager, you probably prefer that Big Beer doesn’t brew it.</p><img src="https://counter.theconversation.com/content/110488/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Jarrett Hart does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The likes of AB InBev and MillerCoors have been trying to jump on the craft beer bandwagon by snapping up artisanal breweries. Do consumers care?Jarrett Hart, Ph.D. Student of Agricultural and Resource Economics, University of California, DavisLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/938882018-04-01T18:25:32Z2018-04-01T18:25:32ZWhy Canada’s craft beer explosion isn’t leading to big acquisitions<figure><img src="https://images.theconversation.com/files/212655/original/file-20180329-189810-1rrlxbj.jpg?ixlib=rb-1.1.0&rect=254%2C875%2C4341%2C2529&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Pints of craft beer are seen on the bar at Main Street Brewing in Vancouver. Craft beer is experiencing an explosion in popularity.</span> <span class="attribution"><span class="source">THE CANADIAN PRESS/Darryl Dyck</span></span></figcaption></figure><p>Not only was beer a passion for Bob and Doug McKenzie, popular members of the Second City comedy troupe during the 1980s, it was also a unit of measurement for the Canadian duo.</p>
<p>The number of brown stubby bottles of Molson Canadian or Labatts Blue they quaffed was the yardstick used to assess qualities ranging from the length of time to the value of a good.</p>
<p>Beer was a relatively homogeneous product back then, making it possible for one stubby bottle to serve as the unit of measure as easily as any other. What would the beer-guzzling hosers make of “beer” today as craft brews take off, eh?</p>
<figure>
<iframe width="440" height="260" src="https://www.youtube.com/embed/04u58ifxmRA?wmode=transparent&start=0" frameborder="0" allowfullscreen=""></iframe>
<figcaption><span class="caption">Twist tops confounded SCTV’s Bob and Doug McKenzie in the 1980s. What would they make of craft beer?</span></figcaption>
</figure>
<p>As it has in other countries, the beer market has changed considerably with the decline of mass-marketed, light-bodied lager beer such as Canadian and Blue and the rise of craft beers differentiated by a number of attributes from taste to location.</p>
<p>But what exactly is a craft beer? Is the brewer small and/or local? Does the beer itself incorporate more specialty hops or innovative ingredients such as fruit and spices? </p>
<p>While there is no pan-Canadian definition, the <a href="http://www.ontariocraftbrewers.com/content.php?nextpage=brewphilosophy">Ontario Craft Brewers Association </a>defines craft beer as being small (less than 400,000 hectolitres), independent, and traditional.</p>
<p>The <a href="https://www.brewersassociation.org/statistics/craft-brewer-defined/">Brewers Association in the United States</a> defines a craft brewer as producing less than six million barrels (around seven million hectolitres) annually, being less than 25 per cent owned by a non-craft brewery and using traditional or innovative ingredients for the majority of their production. </p>
<p>Many beers that were initially produced by local craft brewers have since been purchased by larger, multi-national breweries and are now available in a much wider geographic area thanks to the distribution network of those large larger breweries. Does that mean the beer is still a craft beer?</p>
<p>At the peak of the McKenzie brothers’ popularity in 1985, there were only 10 breweries in Canada, and three companies owned those 10 breweries. </p>
<h2>From 120 breweries to 10</h2>
<p>The consolidation from 120 brewers after Prohibition <a href="http://www.thecanadianencyclopedia.ca/en/article/craft-brewing-in-canada/">to the 10 in 1985</a> was the culmination of a 60-year trend driven by government regulations and economies of size associated with improvements in <a href="https://www.tandfonline.com/doi/abs/10.1080/00076791.2015.1065819">brewing and transportation technology</a>. </p>
<p>The trend toward homogenization and consolidation in beer production was reversed in the 1980s with the beginning of the global <a href="http://www.choicesmagazine.org/choices-magazine/theme-articles/global-craft-beer-renaissance/the-craft-beer-revolution-an-international-perspective">“Real Beer movement</a>.</p>
<p>The sales of craft beer have risen tenfold in the last decade and it now accounts for six per cent of the market. <a href="https://news.ontario.ca/omafra/en/2016/06/provincial-and-federal-governments-investing-over-16-million-in-craft-beer-sector.html">Government incentives</a> and consumer demand for locally anchored food experiences have fostered <a href="https://link.springer.com/chapter/10.1007%2F978-3-319-58235-1_3">this growth in Canada</a> and <a href="http://www.choicesmagazine.org/choices-magazine/theme-articles/global-craft-beer-renaissance/the-craft-beer-revolution-an-international-perspective">globally</a>.</p>
<p>The current production of approximately 20 million hectolitres of <a href="https://industry.beercanada.com/statistics">beer</a> in Canada is close to 1985 levels but more than 700 breweries are now brewing it. </p>
<p>The trend toward more breweries has accelerated recently with the numbers nearly doubling over the last five years, and the growth coming almost exclusively from those firms producing less than 50,000 hectolitres, which now represent over 95 per cent of all breweries in <a href="https://industry.beercanada.com/statistics">Canada</a>.</p>
<h2>Two extremes</h2>
<p>The number of large brewers has also grown, but there has been a hollowing out
of the middle — there are no longer any medium-sized breweries that produce between 50,000 and 75,000 hectolitres of beer.</p>
<p>The evolution of Canadian beer production into the two extremes of the size distribution parallels the situation in the United States. Craft beer production has grown dramatically in the U.S., expanding from roughly five million barrels in 2004 to nearly 25 million in <a href="https://www.brewersassociation.org/statistics/national-beer-sales-production-data/">2016</a>. </p>
<p>This production comes from more than 6,000 craft breweries, and the vast majority are small craft breweries with limited distribution.</p>
<p>The difference between the U.S. and Canadian market is the existence of large, regional craft breweries; the three largest craft brewers account for approximately one-quarter of all craft beer produced in the <a href="https://link.springer.com/chapter/10.1007/978-3-319-58235-1_2">United States</a> </p>
<p>However, these are precisely the type of breweries that have been targeted by multinationals for acquisition, e.g., Ballast Point by Constellation Brands and Lagunitas by Heineken.</p>
<h2>Regulations stem from temperance era</h2>
<p>The Canadian craft beer sector may grow to become like the U.S. where, as breweries grow, they face the threat of acquisition. But it’s unlikely that Canadian craft breweries will grow significantly to become attractive for such a buyout.</p>
<p>Canadian regulations on the sale of alcohol stemming from the <a href="http://www.thecanadianencyclopedia.ca/en/article/temperance-movement/">temperance movement at the beginning of the last century</a> have limited the opportunities for microbreweries to sell outside their locations other than through local bars and restaurants. </p>
<p>Policies that impose lower taxation rates on smaller breweries provide a further disincentive for growth beyond a certain size in most Canadian jurisdictions. </p>
<p>Production costs associated with distribution and supply issues complicated by the distance between population centres in Canada have also constrained the size of new breweries.</p>
<p>While we have seen some acquisition, purchasing small Canadian craft breweries unproven outside of their local domain could be highly risky for large multinationals. </p>
<p>The resulting evolution of Canadian beer production into either small or large brewers is consistent with the change happening in many other agri-food sectors. </p>
<p>There is a "valley of death” for mid-size producers too large to capture local demand premiums and too small to achieve economies of size in production and distribution.</p><img src="https://counter.theconversation.com/content/93888/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Alfons Weersink receives funding from Food from Thought, sponsored through the Canada First Research Excellence Fund, and from the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA). </span></em></p><p class="fine-print"><em><span>Michael von Massow receives funding from the WALMART foundation to undertake food waste research. He has received funding from Longo’s in support of the Guelph Food Retail Laboratory. He has also received funding from the Ontario Ministry of Agriculture and Food. </span></em></p>Canada’s craft beer industry is exploding. But antiquated regulations stemming from the years of the temperance movement is preventing big acquisitions by larger brewers.Alfons Weersink, Professor, Dept of Food, Agricultural and Resource Economics, University of GuelphMichael von Massow, Associate Professor, Food Economics, University of GuelphLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/917372018-03-13T10:39:27Z2018-03-13T10:39:27ZWhy bland American beer is here to stay<figure><img src="https://images.theconversation.com/files/209974/original/file-20180312-30989-klloff.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Americans tend to prefer beers that have corn or rice 'adjuncts,' or fillers.</span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-vector/man-beer-retro-clip-art-56756380?src=qF-aGOZRWm1RU8jWXH16mg-1-18">RetroClipArt/Shutterstock.com</a></span></figcaption></figure><p>Although craft beer has experienced explosive market growth over the past 25 years, the vast majority of Americans still don’t drink it.</p>
<p>Only about <a href="https://www.brewersassociation.org/press-releases/2016-growth-small-independent-brewers/">1 in 8</a> beers sold in America is a craft beer. For the first time, the <a href="https://www.washingtonpost.com/news/food/wp/2018/01/13/for-the-first-time-the-three-best-selling-beers-in-america-are-light-beers-can-craft-brewers-catch-up/?utm_term=.3d44be4b56f9">three best-selling beers</a> in America are light beers: Bud Light, Coors Light and Miller Lite. Bud Light alone has a greater market share than all craft beers combined. </p>
<p>So while the selection has broadened dramatically, most people’s tastes have not. Even craft beer companies are adjusting to this reality: A recent <a href="http://www.chicagotribune.com/business/ct-biz-top-selling-beers-20180116-story.html">Chicago Tribune article</a> noted that craft breweries are releasing beers that are “less hoppy and in-your-face” in order to appeal to the majority of Americans who prefer “big corporate lagers.”</p>
<p>In other words, they’re brewing blander beers.</p>
<p>How did Americans come to prefer such bland beer? As an economic historian, I’ve extensively researched the political economy of alcohol prohibition, and the unique history of the U.S. temperance movement might bear some responsibility for country’s exceptionally bland beer.</p>
<h2>The ‘lager bier craze’ clashes with teetotalers</h2>
<p>Unlike European countries with beer preferences and styles that have evolved over centuries, America lacks a homegrown brewing tradition.</p>
<p>The classic American beer is an “adjunct pilsner,” which means that some of the malted barley is replaced with corn or rice. The effect is a beer that’s lighter, clearer and less hoppy than its counterparts in countries like England, Germany and Belgium.</p>
<p>In colonial America, English-style beers and ales predominated, but rum and then whiskey were the drink of choice. Cider, easier to make at home, overtook beer by the early 19th century. </p>
<p>However, the American beer market grew during the great mid-19th century wave of <a href="http://www.beerhistory.com/library/holdings/beerbarons.shtml">German immigration</a>. German lagers were an immediate hit, partially because the German brewing method of <a href="https://beerandbrewing.com/dictionary/2Kudv5620R/bottom-fermentation/">bottom fermentation</a> – which involves a relatively long fermentation period and cold storage – made for a more consistent, storable product than top-fermented ales. The lagers were also mellower, though they were dark and hearty compared to what would become popular later.</p>
<p>But the “lager bier craze” dovetailed with another big trend: <a href="https://books.google.com/books?id=MJbBqn3XWqAC&lpg=PP1&dq=temperance%20movement%20in%20america&pg=PP1#v=onepage&q&f=false">the temperance movement</a>, which at various times sought to reduce problem drinking, reduce drinking more generally and eradicate alcohol consumption completely. From 1830 to 1845, the temperance movement gained momentum as more and more Americans were taking voluntary “<a href="https://books.google.com/books?id=BuzNzm-x0l8C&pg=PA108&dq=%22temperance+pledge%22&hl=en&sa=X&ved=0ahUKEwjFvfPEjefZAhUGRqwKHR71CDQ4ChDoAQg5MAQ#v=onepage&q=%22temperance%20pledge%22&f=false">temperance pledges</a>” and giving up spirits and cider. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/209972/original/file-20180312-30983-1pkwh26.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/209972/original/file-20180312-30983-1pkwh26.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/209972/original/file-20180312-30983-1pkwh26.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=465&fit=crop&dpr=1 600w, https://images.theconversation.com/files/209972/original/file-20180312-30983-1pkwh26.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=465&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/209972/original/file-20180312-30983-1pkwh26.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=465&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/209972/original/file-20180312-30983-1pkwh26.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=584&fit=crop&dpr=1 754w, https://images.theconversation.com/files/209972/original/file-20180312-30983-1pkwh26.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=584&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/209972/original/file-20180312-30983-1pkwh26.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=584&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">A print from the 1800s promotes ‘lager bier’ as a ‘healthy drink’ and a ‘family drink.’</span>
<span class="attribution"><a class="source" href="https://upload.wikimedia.org/wikipedia/commons/thumb/5/59/Lager_Bier_%28LOC_pga.02166%29.jpg/1280px-Lager_Bier_%28LOC_pga.02166%29.jpg">Library of Congress</a></span>
</figcaption>
</figure>
<p>German brewers always <a href="https://www.tandfonline.com/doi/full/10.1080/00076791.2015.1027691">maintained</a> that beer was a “temperance beverage,” unlike ardent spirits such as whiskey. And indeed, European temperance movements did tend to regard beer as relatively harmless. </p>
<p>But activists in the American temperance movement – which by then had become more about abstinence and intertwined with evangelical Protestantism – didn’t buy the argument. The 1850s saw the first big push for <a href="https://www.ncbi.nlm.nih.gov/books/NBK216414/">state-level prohibition laws</a>, which ended up being passed in a handful of states. Those laws didn’t last for a variety of reasons (including the Civil War), but they did serve notice to the brewers that they needed to work harder to convince the public that beer was a temperance beverage.</p>
<h2>Perfect for a midday drink</h2>
<p>In the 1870s, American beer would become mellower still with the advent of a new type of lager: the Bohemian pilsner. Clearer, lighter and blander than the Bavarian lagers that had previously dominated the market, pilsners looked cleaner, healthier, more stable and less intoxicating.</p>
<p>As an 1878 issue of the trade publication Western Brewer <a href="https://www.tandfonline.com/doi/full/10.1080/00076791.2015.1027691">noted</a>, Americans “want a clear beer of light color, mild and not too bitter taste.”</p>
<p>Brewers and drinkers who wanted to avert the temperance movement’s gaze naturally chose light pilsners over dark lagers. But lighter beer also was a good fit for the long hours of American factory workers, <a href="https://books.google.com/books?id=pcOvAwAAQBAJ&pg=PA149&lpg=PA149&dq=midday+beer+factory+worker&source=bl&ots=-cWg0Xi-Ku&sig=lSqQTDeD4Cf1n5LGj0zDViS1fRA&hl=en&sa=X&ved=0ahUKEwiniIHdkufZAhUCR6wKHT0GCO84ChDoAQhEMAg#v=onepage&q=midday%20beer%20factory%20worker&f=false">many of whom ate at saloons between shifts</a>. Coming back to work drunk could get you fired, so if you wanted a beer or two with the salty saloon fare, the weakest beers were the best bet. </p>
<p>Pragmatism and personal taste soon became intertwined. Anheuser-Busch introduced Budweiser in 1876 – whose rice adjuncts produced an even milder beer – to great success. Pabst Blue Ribbon, with its corn adjuncts, became a national sensation as well.</p>
<p>In 1916, Gustave Pabst, the son of Pabst Blue Ribbon’s founder Frederick Pabst, <a href="https://books.google.com/books?id=0Vo5AQAAMAAJ&pg=PA350&lpg=PA350&dq=pabst+the+discrimination+in+favor+of+light+beers+in+those+countries+where+the+anti-alcohol+sentiment+is+strongest&source=bl&ots=yuqeME3t27&sig=uMdCP8Ahkjl2ULz1iADi8pDPoVs&hl=en&sa=X&ved=0ahUKEwjF_c7qzeTZAhWCuFMKHS7KA6wQ6AEILzAA#v=onepage&q=pabst%20the%20discrimination%20in%20favor%20of%20light%20beers%20in%20those%20countries%20where%20the%20anti-alcohol%20sentiment%20is%20strongest&f=false">told</a> the United States Brewers Association that “the discrimination in favor of light beers (is strongest) in those countries where the anti-alcohol sentiment is strongest.” </p>
<p>Nonetheless, the drumbeat of the temperance movement started getting louder.</p>
<h2>Prohibition leaves its mark</h2>
<p>By the late 19th and early 20th century, the temperance movement had returned in force. Efficient organizing campaigns by the Woman’s Christian Temperance Union and the Anti-Saloon League led to a new wave of state and local prohibitions and, finally, <a href="https://prohibition.osu.edu/anti-saloon-league">a push for national prohibition</a>. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/209975/original/file-20180312-30979-1pj0sjr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/209975/original/file-20180312-30979-1pj0sjr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/209975/original/file-20180312-30979-1pj0sjr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=377&fit=crop&dpr=1 600w, https://images.theconversation.com/files/209975/original/file-20180312-30979-1pj0sjr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=377&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/209975/original/file-20180312-30979-1pj0sjr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=377&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/209975/original/file-20180312-30979-1pj0sjr.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=473&fit=crop&dpr=1 754w, https://images.theconversation.com/files/209975/original/file-20180312-30979-1pj0sjr.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=473&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/209975/original/file-20180312-30979-1pj0sjr.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=473&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">An 1888 photograph of the New Hampshire Woman’s Christian Temperance Union.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/keenepubliclibrary/4537662459">Keene Public Library and the Historical Society of Cheshire County</a></span>
</figcaption>
</figure>
<p>National constitutional prohibition, as decreed by the <a href="https://en.wikipedia.org/wiki/Eighteenth_Amendment_to_the_United_States_Constitution">18th Amendment</a> and the <a href="https://www.archives.gov/education/lessons/volstead-act">Volstead Act</a>, was devastating to the beer industry in the short term. But in the long term, it further laid the groundwork for a nation of bland beer drinkers. </p>
<p><a href="https://www.tandfonline.com/doi/full/10.1080/00076791.2015.1027691">Careful estimates</a> by economist Clark Warburton found that alcohol consumption during Prohibition may have actually risen for wine and spirits but fell by two-thirds for beer, which was harder to conceal. Although Prohibition may have introduced a generation of young people to <a href="https://theconversation.com/the-prohibition-era-origins-of-the-modern-craft-cocktail-movement-109623">cocktails</a>, they had hardly any exposure to beer – and certainly hadn’t acquired the taste for hearty beer. </p>
<p>In March 1933, eight months before the 21st Amendment repealed Prohibition, Congress <a href="https://www.alcoholproblemsandsolutions.org/cullen-harrison-act-early-start-national-repeal/">modified</a> the Volstead Act to allow the production of “non-intoxicating,” low-alcohol beer and wine, with a maximum of 4 percent alcohol by volume. </p>
<p>The new, watered-down beer was a huge hit with the public, which hadn’t tasted a full-strength legal beer since 1917. Dark beers and ales had accounted for some 15 percent of the market before World War I. But in 1936 their share was just 2 to 3 percent. In 1947, researchers at Schwarz Laboratories analyzed the alcohol, hop and malt content of American beers in the 1930s and 1940s and <a href="https://www.tandfonline.com/doi/full/10.1080/00076791.2015.1027691">remarked</a> that many of these early post-repeal beers were “too hoppy,” “too heavy and too filling” for consumers’ tastes. The report noted “a corrective trend” in which brewers sharply reduced their hop and malt content.</p>
<p>More adventurous brewers and drinkers were also stymied by post-Prohibition laws. State and federal policies effectively <a href="https://beerandbrewing.com/the-day-homebrewing-was-legalized/">banned homebrewing</a>, and most states required a “three-tier” system of brewers, distributors and retailers that made it more difficult to make and market specialty beers.</p>
<p>The blandification of American beer continued for another 70 years. During World War II, <a href="https://books.google.com/books?id=hHNNBAAAQBAJ&pg=PA132&dq=mittelman+beer+3.2+war&hl=en&sa=X&ved=0ahUKEwiR0bmHrefZAhXQyVMKHUD_DZAQ6AEIJzAA#v=onepage&q=mittelman%20beer%203.2%20war&f=false">American troops got 4 percent alcohol beer</a> in their rations, exposing yet another generation to the joys of weak beer. The hop and malt content of beer <a href="https://www.tandfonline.com/doi/full/10.1080/00076791.2015.1027691">fell sharply and steadily over this period</a>. Hop content fell by half from 1948 to 1969, and the rise of “lite” beer in the 1970s accelerated the trend. Hop content fell 35 percent from 1970 to 2004.</p>
<p>Despite the phenomenal rise of craft beer, light beers are still dominant. The craft beer explosion <a href="https://www.processhistory.org/craft-beer-dighe/">is a remarkable story</a>, but perhaps we should stop calling it a revolution. </p>
<p>For now, bland beers are still king.</p><img src="https://counter.theconversation.com/content/91737/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Ranjit Dighe does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>The unique role of the temperance movement in US history might explain why, when it comes to Americans’ tastes, bland beer is still king.Ranjit Dighe, Professor of Economics, State University of New York OswegoLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/905122018-02-02T20:43:34Z2018-02-02T20:43:34ZFed up with Big Beer’s incursion, independent craft breweries push back<figure><img src="https://images.theconversation.com/files/204494/original/file-20180201-123826-10b9w6t.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Many enthusiasts judge craft beer by more than its flavor. </span> <span class="attribution"><a class="source" href="https://www.shutterstock.com/image-photo/craft-beer-booze-brew-alcohol-celebrate-565125871">Rawpixel.com/Shutterstock.com</a></span></figcaption></figure><p>A <a href="https://www.brewersassociation.org/business-tools/marketing-advertising/independent-craft-brewer-seal/">new seal</a> began to appear on bottles and cans of American craft beer in 2017. It both certifies that the beer came from one of the nation’s <a href="https://www.pastemagazine.com/articles/2017/12/craft-beer-is-dead-in-2018-so-what-is-independent.html">independently owned and small-scale breweries</a> and signals that <a href="https://www.brewersassociation.org/statistics/national-beer-sales-production-data/">these upstarts</a> are fighting back against the corporations trying to co-opt their authenticity and craftiness.</p>
<p>The corporate juggernauts often called “Big Beer” clearly get the multifaceted appeal of independently brewed craft beer powered by a thirst for locally made products like beer made from traditional and unusual ingredients. That’s why they’re trying to beat back the competition by giving off the same vibe as the craft breweries that have eroded their edge – when they’re not running Super Bowl commercials that deride people who drink craft beer. </p>
<p><a href="http://wvupressonline.com/node/663">Like other researchers</a> studying this trend, we see the growing taste for beer from small-scale artisanal breweries as a <a href="https://doi.org/10.1086/615047">consumer-based social movement</a>. We believe the new label will help craft brewers to hold their ground because many enthusiasts don’t want to be fooled into drinking a fake version of a product that commands a premium due partly to its <a href="https://hdl.handle.net/2144/15673">diversity and authenticity</a>.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/204476/original/file-20180201-123852-dpphzs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/204476/original/file-20180201-123852-dpphzs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/204476/original/file-20180201-123852-dpphzs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=240&fit=crop&dpr=1 600w, https://images.theconversation.com/files/204476/original/file-20180201-123852-dpphzs.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=240&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/204476/original/file-20180201-123852-dpphzs.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=240&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/204476/original/file-20180201-123852-dpphzs.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=302&fit=crop&dpr=1 754w, https://images.theconversation.com/files/204476/original/file-20180201-123852-dpphzs.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=302&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/204476/original/file-20180201-123852-dpphzs.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=302&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Montage of photos with the new independent craft brew seal.</span>
<span class="attribution"><a class="source" href="https://www.brewersassociation.org/business-tools/marketing-advertising/independent-craft-brewer-seal/">Brewers Association</a>, <a class="license" href="http://creativecommons.org/licenses/by-sa/4.0/">CC BY-SA</a></span>
</figcaption>
</figure>
<p>Only <a href="https://vinepair.com/articles/hop-take-budweiser-most-popular/">two giant players</a> remain in the domestic market after <a href="https://www.theatlantic.com/business/archive/2018/01/craft-beer-industry/550850/">years of mergers</a>: Anheuser-Busch InBev and MillerCoors.</p>
<p>This duopoly is using three main strategies to quash its tiny competitors. It buys out craft breweries and launches its own “craft” brands, which <a href="https://www.brewersassociation.org/statistics/craft-brewer-defined/">do not fit the artisanal industry’s own definition</a> since they are mass-produced. It also <a href="https://www.youtube.com/watch?v=yyVgO_j8vxw">derides craft beer drinkers</a>.</p>
<h2>Masquerading as upstarts</h2>
<p>We call Anheuser-Busch’s <a href="http://www.anheuser-busch.com/beers.html">Shock Top</a>, MillerCoors’ <a href="https://www.bluemoonbrewingcompany.com/">Blue Moon</a> and similar beverages “imposter beers” or “crafty beers.” They tend to leave their big corporate parents off the label – which of course stresses local origins.</p>
<p>Blue Moon’s packaging, for instance, notes prominently that it is made in Golden, Colorado. That geographic detail, the <a href="http://adage.com/article/cmo-strategy/blue-moon-changing/301403/">labels’ imagery</a> and a prominent reference to the Blue Moon Brewing Company (with no reference to MillerCoors) suggest a source with modest means, not a <a href="https://www.marketwatch.com/story/how-blue-moon-made-craft-beer-meaningless-2015-05-01">multibillion-dollar behemoth</a>. </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"897011401343893508"}"></div></p>
<p>Consumers who felt deceived when they discovered that <a href="https://www.eater.com/2015/1/7/7508103/kirin-beer-refund-japan">Kirin beer</a> was made in the U.S. and not Japan – despite advertising that suggested it was imported – sued Anheuser-Busch in 2013 and won. So did plaintiffs in a similar <a href="https://www.eater.com/2015/6/25/8845097/becks-beer-germany-lawsuit-inbev-refund">lawsuit regarding Beck’s</a>, also brewed by Anheuser-Busch. But Big Beer has prevailed in court with litigation involving consumers who felt misled about what kind of company brewed their beer rather than its geographic origin.</p>
<p>For example, an <a href="http://www.winelawonreserve.com/wp-content/uploads/2015/04/Parent-v.-MillerCoors-Blue-Moon.pdf">irked beer drinker</a> <a href="https://www.eater.com/2015/5/1/8528771/blue-moon-lawsuit-craft-beer-claims-millercoors">sued MillerCoors</a> for misrepresenting its Blue Moon label as a craft beer. MillerCoors responded that any definition of what makes a beer “craft beer” is meaningless.</p>
<p>U.S. District Judge Gonzalo Curiel agreed. Essentially ruling that beer is beer, no matter how big its brewer is, he <a href="https://www.reuters.com/article/us-millercoors-bluemoon-lawsuit/millercoors-gets-blue-moon-craft-beer-lawsuit-thrown-out-idUSKCN0Z31Q9">dismissed the case</a> – letting Goliath get away with posing as David.</p>
<h2>Snapping up competitors</h2>
<p>Big Beer also acquires small labels and even, in <a href="https://www.midwestsupplies.com/">some cases</a>, <a href="https://www.northernbrewer.com/">homebrewing supply companies</a>. </p>
<p>This infiltration almost always occurs on the sly. The labels and usually even the beer itself stays the same after ownership changes. </p>
<p>Many <a href="http://goodbeerhunting.com/blog/2017/5/6/critical-drinking-on-like-mindedness-authenticty-and-cowardice">craft beer enthusiasts lament</a> the “loss” of well-loved craft brewers like Goose Island and Breckenridge, which now belong to Anheuser-Busch, and Lagunitas, a label Heineken now owns. </p>
<p>Anheuser-Busch and its Big Beer peers like <a href="https://www.fool.com/investing/2018/01/16/why-constellation-brands-stock-soared-49-in-2017.aspx">Constellation Brands</a>, which imports and brews Corona and other premium beers, have bought out or acquired large stakes in at least <a href="https://www.mensjournal.com/food-drink/is-that-really-craft-beer-21-surprising-corporate-brewers-20150923/">33 craft brewers</a> in recent years. </p>
<p>This spree is leaving craft brewers and customers trying to figure it out two things. First, does the ownership matter? Second, what is Big Beer up to?</p>
<p><a href="https://www.researchgate.net/publication/316669299_Ethical_Brews_New_England_Networked_Ecologies_and_a_New_Craft_Beer_Movement">We interviewed nearly 20 New England brewers</a> and brewery owners to see what they thought. Some surmise that Big Beer is capturing some labels to study the industry and culture. Others suspect nefarious ploys to control shelf space and taps – and protect the market share of the biggest and most cheaply produced beers from any additional craft beer encroachment.</p>
<p>Similarly, Anheuser-Busch’s <a href="https://www.usatoday.com/story/money/nation-now/2017/05/03/wicked-weed-brewing-anheuser-busch-partnership/309733001/">purchase of craft label Wicked Weed</a> in 2017 prompted Jason and Todd Alström, brothers who run the popular <a href="https://www.beeradvocate.com/about/">Beer Advocate</a> website, to complain about what they call “<a href="https://www.beeradvocate.com/articles/15999/zombie-beer-brands/">zombie beer brands</a>.”</p>
<p>That is, beer that appears to be locally brewed by independent owners but what they called Big Beer’s “soulless” competition for the real thing. </p>
<h2>Taunting craft beer drinkers</h2>
<p>When Big Beer isn’t imitating its craft brewing competitors, it counters their appeal by belittling their customers. </p>
<p>In a commercial that aired during the <a href="https://www.youtube.com/watch?v=yyVgO_j8vxw">2015 Super Bowl</a>, Budweiser declared that it is “proudly a macro beer,” not to be “fussed over” or “dissected” or imbibed by consumers of “pumpkin peach ale.”</p>
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<figcaption><span class="caption">Budweiser’s 2015 Super Bowl commercial that belittled craft beer fans.</span></figcaption>
</figure>
<p>The company doubled down on its <a href="https://www.youtube.com/watch?v=VTTUA_KIrug">big-is-better meme</a> the next year. In a similar commercial, Budweiser sneered at the origin stories of many craft breweries – which often begin as homebrewing pastimes – that Budweiser is “not a hobby” and “not small.” </p>
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<figcaption><span class="caption">Budweiser dissed craft beer and craft beer drinkers in this 2016 Super Bowl commercial.</span></figcaption>
</figure>
<p>Budweiser also feminized male craft beer drinkers and implicitly questioned their sexuality. The 2016 commercial boasted that its beer is “not soft” and “not a fruit cup” to a thumping, masculine beat. </p>
<p>Some craft brewers <a href="https://www.youtube.com/watch?v=ZEKqLxtjwDQ&feature=youtu.be">retaliated with parodies</a>.</p>
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<figcaption><span class="caption">Ninkasi Brewing in Oregon mocked Budweiser’s anti-craft message.</span></figcaption>
</figure>
<h2>Who is winning?</h2>
<p>All but US$23.5 billion of the <a href="https://www.brewersassociation.org/statistics/national-beer-sales-production-data/">$107.6 billion</a> Americans spent on beer in 2016 flowed toward Big Beer. But the volume of beer sold <a href="http://www.nielsen.com/us/en/insights/reports/2017/the-state-of-the-us-beer-market.html">has stagnated since 2013</a> as American <a href="https://www.brewersassociation.org/statistics/number-of-breweries/">craft breweries</a>, which now number more than 5,200, gained ground. </p>
<p>In 2017, U.S.-brewed beer <a href="https://www.brewbound.com/news/report-us-beer-makers-shipped-3-8-million-fewer-barrels-2017">fell by 4 million barrels</a> to 170 million barrels. However, <a href="https://www.brewbound.com/news/iri-worldwide-us-beer-sales-exceed-34-billion-2017">sales of imported and craft beer sold straight to consumers</a> (versus at bars or restaurants) rose measured by dollars, as did domestic <a href="https://www.statista.com/statistics/427085/us-sales-leading-domestic-super-premium-beer-brands/">super-premium brands</a> like Michelob Ultra Light and Bud Light Lime, according to the market research firm IRI Worldwide. </p>
<p>We expect independent craft brewers, which are <a href="https://www.brewersassociation.org/statistics/national-beer-sales-production-data/">gaining a bigger market share</a> overall, to prevail. </p>
<p>But we’re not underestimating Big Beer, especially when <a href="https://www.brewbound.com/news/iri-worldwide-us-beer-sales-exceed-34-billion-2017">Blue Moon Belgian White</a> was the top-selling “craft” brand sold directly to consumers in 2017.</p>
<p><em>This article has been updated to correct where Blue Moon labels say the beer is made: Golden, Colorado.</em></p><img src="https://counter.theconversation.com/content/90512/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Labels for boutique beers made by giant corporations may give the impression that a tiny craft brewery slapped them on the bottles. That confusion is by design.Ellis Jones, Assistant Professor of Sociology, College of the Holy CrossDaina Cheyenne Harvey, Assistant Professor of Sociology and Anthropology, College of the Holy CrossLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/822322018-01-12T11:22:12Z2018-01-12T11:22:12ZCraft beer is becoming the wine of New England by redefining ‘terroir’<figure><img src="https://images.theconversation.com/files/201679/original/file-20180111-101502-1ifl1bt.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Pouring Saison, a classic Belgian farmhouse-style ale, at Allagash Brewing in Portland, Maine.</span> <span class="attribution"><a class="source" href="https://flic.kr/p/mCuB7X">Allagash Brewing</a>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span></figcaption></figure><p>The U.S. craft beer industry is exploding. Although two companies – Anheuser-Busch InBev and MillerCoors – have produced <a href="https://www.cambridge.org/core/journals/journal-of-wine-economics/article/the-us-beer-industry-concentration-fragmentation-and-a-nexus-with-wine/8539AFAAF6ACF085D29D37066BE71A5F">more than 75 percent</a> of all beer consumed in the United States for decades, America now has more craft breweries than at any time in recorded history.</p>
<p>Private investment firms are <a href="https://pitchbook.com/news/articles/pe-pints-and-pbr-investors-pouring-money-into-beer-industry">pouring money into small breweries</a> as though they were Silicon Valley startups. Towns looking to revitalize are <a href="https://www.curbed.com/2017/6/13/15788960/brewing-economic-development-craft-beer">offering economic incentives</a> for people willing to start up craft breweries in their areas.</p>
<p>To our collective detriment, there is little sociology research on the subject of craft beer, even though this industry is built on the kinds of social connections that we and our colleagues have long studied in other contexts. So we decided to do a bit of our <a href="https://www.researchgate.net/profile/Ellis_Jones/publication/316669299_Ethical_Brews_New_England_Networked_Ecologies_and_a_New_Craft_Beer_Movement/links/590b450b0f7e9b1d082725fb/Ethical-Brews-New-England-Networked-Ecologies-and-a-New-Craft-Beer-Movement.pdf">own research</a>.</p>
<p>After analyzing in-depth interviews with 18 New England craft brewers, we have found that they are creating a regional industry here with the kind of local roots that many people associate more readily with wine than beer. By fostering social, economic and historic connections, craft brewers are thriving in a region that produces little hops or barley.</p>
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<figcaption><span class="caption">How to brew your own New England IPA.</span></figcaption>
</figure>
<h2>The terroir of beer</h2>
<p>The concept of <a href="https://doi.org/10.1016/S0743-0167(02)00052-9">terroir</a>, meaning the environmental factors that influence how a food tastes, has been primarily used to link wine production with specific places. The production ecologies of wine, champagne and cheese all consider factors including soil, topography and microclimate. Terroir often refers to ecological and cultural conditions that create a sense of group identity by engaging with and consuming particular products – especially food.</p>
<p>Increasingly, craft brewers also are speaking of their product’s terroir and the interplay of place, cultural traditions, ecology and science that create an idea of beer. The turn to terroir in brewing is rooted in various movements, including <a href="https://doi.org/10.1080/0034676042000253927">slow food</a>, <a href="https://search.proquest.com/openview/50dda03524429dd35abfd40ca42de13c/1?pq-origsite=gscholar&cbl=1817355">back-to-the-land</a>, and <a href="https://doi.org/10.1080/14742837.2012.640535">locavorism</a>. All of these movements stress a strong relationship between food, practices and place.</p>
<p>Most macro beer from large producers like Miller, Budweiser and Coors is homogeneous. It tastes the same whether it is made in St. Louis or New Hampshire, or whether it is consumed in Austin or San Diego. </p>
<p>In contrast, craft beer often reflects local styles or ingredients. A craft brewed India pale ale from <a href="https://throwbackbrewery.com">Throwback Brewery</a> in North Hampton, New Hampshire will not taste the same as an IPA from <a href="http://www.revivalbrewing.com">Revival</a> in Cranston, Rhode Island. In fact, both breweries will most likely produce several different versions of IPA. </p>
<p>Dan, a co-founder of <a href="https://www.mainebeercompany.com">Maine Beer Co.</a>, told us that Maine Beer did not sell its beer beyond a certain geographic boundary because they wanted it to retain its connection to Maine. Craft beer tourists now travel to specific locales in New England just to taste craft beers, such as an authentic <a href="https://en.wikipedia.org/wiki/India_pale_ale#New_England_IPA">New England IPA</a>, developed earlier this decade, which they cannot find, taste or purchase where they live.</p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/201693/original/file-20180111-101508-1sads35.png?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/201693/original/file-20180111-101508-1sads35.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/201693/original/file-20180111-101508-1sads35.png?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=677&fit=crop&dpr=1 600w, https://images.theconversation.com/files/201693/original/file-20180111-101508-1sads35.png?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=677&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/201693/original/file-20180111-101508-1sads35.png?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=677&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/201693/original/file-20180111-101508-1sads35.png?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=851&fit=crop&dpr=1 754w, https://images.theconversation.com/files/201693/original/file-20180111-101508-1sads35.png?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=851&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/201693/original/file-20180111-101508-1sads35.png?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=851&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Craft breweries have become tourist attractions across New England.</span>
<span class="attribution"><a class="source" href="http://mainebrewersguild.org/beertrail/">Maine Brewers Guild</a></span>
</figcaption>
</figure>
<h2>Cultivating local roots</h2>
<p>New England craft brewers also are redefining the concept of terroir itself. They have no choice: Grain, the chief ingredient of beer, is not grown here in large enough quantities to make a place-specific product. Other components of beer, such as hops, are just beginning to show up on local farms.</p>
<p>To get around these difficulties, New England craft breweries have developed three strategies. First, they are connecting beer to local communities through linkages that we call networked ecologies – a group of independent systems that build up a particular infrastructure, such as craft brewers, local farms and other food producers. Social scientists have identified networked ecologies in sectors from <a href="https://www.ucpress.edu/book.php?isbn=9780520270183">artisanal cheesemaking</a> to <a href="http://www.varnelis.net/publications/infrastructural-city">urban infrastructure</a>.</p>
<p>We use the term here to show how a brewery like <a href="http://homefieldbrewing.biz">Homefield</a> in Sturbridge, Massachusetts, sources all of its food from local farmers markets and farms to showcase the “food terrain” in which it is based. </p>
<p>These links were evident when we interviewed Shawn, head brewer at <a href="http://drinkrapscallion.com/">Rapscallion</a>, also located in Sturbridge. We were interrupted when a local farmer dropped off strawberries for an upcoming beer, which immediately reminded Shawn that he needed to deliver some beer to B.T.’s Smokehouse down the street for their onion ring batter. </p>
<p><div data-react-class="Tweet" data-react-props="{"tweetId":"943187394605604866"}"></div></p>
<p>A second strategy is organizing collaborative brewing projects with other brewers, rather than emphasizing competition. These interactions have both pragmatic and symbolic value. Brewers help each other to maintain a certain level of quality, similar to the historic role of guilds. These partnerships also signal to people interested in local products that a brewery they might be unfamiliar with is just like another local brewery that they may like and respect. </p>
<p>Finally, like many New England farmers, craft brewers stress connections with the past. They situate production of beer in New England in Thoreau’s landscape, invoking a bucolic and pastoral set of associations, and talk about how interacting with the local environment allows them to produce a unique product. Here is a representative comment from our interview with Chris, head brewer at <a href="http://www.thepeoplespint.com/">The People’s Pint</a> in Greenfield, Massachusetts: </p>
<blockquote>
<p>“Barley that is grown in this valley, especially that is used for malting, has a very specific flavor to it, and it comes from the couple types of bacteria that develop because of the high level of moisture in the area on the actual husk of the barley… and where this farm is in Northfield … you get this sort of fog that lasts longer in the morning, and so the flavor development in the hop cones themselves … [it’s completely different].”</p>
</blockquote>
<h2>How New England ‘grows beer’</h2>
<p>New England’s history of cottage industries and its pastoral heritage make it a perfect place for the emergence of a craft beer movement. Many of the brewers we have spoken with see their missions as making beer that is representative of a specific place.</p>
<p>Only a few years ago, the idea of “growing beer” in this area would have been impossible. Networked ecologies have made the New England craft beer movement possible. </p>
<p>For brewers, these interactions and interdependencies create ethical relationships among people and places and products that reveal a particular way to make beer. In addition to a unique terroir, these brewers hope that their beers also reveal these ecologies – and, hence, the people who help grow, produce and consume their beer.</p><img src="https://counter.theconversation.com/content/82232/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Winemakers call the ecological factors that define their product terroir. By redefining that idea to include history and social ties, New England craft brewers have grown an industry with local roots.Daina Cheyenne Harvey, Assistant Professor of Sociology and Anthropology, College of the Holy CrossEllis Jones, Assistant Professor of Sociology, College of the Holy CrossLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/856682017-10-17T19:12:43Z2017-10-17T19:12:43ZWhy craft beer is going corporate<figure><img src="https://images.theconversation.com/files/190551/original/file-20171017-5027-1mir74q.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Craft brewing is a small segment but growing incredibly fast.</span> <span class="attribution"><span class="source">Shutterstock</span></span></figcaption></figure><p>Australians may be drinking beer at <a href="https://www2.deloitte.com/au/en/pages/consumer-business/articles/craft-beer-bucking-the-trend-in-australia.html">65-year lows</a>, but one segment is bucking the trend - craft beer. According to a <a href="https://www.ibisworld.com.au/industry-trends/specialised-market-research-reports/consumer-goods-services/craft-beer-production.html">recent report</a>, Australian craft breweries generate almost A$500 million in yearly revenue, and this is growing at 10% a year. </p>
<p>But while you may imagine your craft beer is being brewed by a small operation, the reality is the industry is being swallowed by large corporations. </p>
<p>There are a number of reasons for this. Large corporations obviously want access to a lucrative and growing market, but craft brewers also need access to capital, better distribution deals and marketing expertise. </p>
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Read more:
<a href="https://theconversation.com/when-hand-crafted-is-really-just-crafty-marketing-47749">When 'hand crafted' is really just crafty marketing</a>
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<p>Despite there being almost 400 craft brewers in Australia, global giants Lion and SAB <a href="https://www.ibisworld.com.au/industry-trends/specialised-market-research-reports/consumer-goods-services/craft-beer-production.html">control more than 50% of the market</a>.</p>
<p>It’s not just market share, though. Large corporations own many of our most prominent craft beer brands, such as Little Creatures, James Squires, and White Rabbit (<a href="https://www.lionco.com/our-brands/alcohol-beverages-au/craft-beer">Lion</a>), as well as Matilda Bay Brewing, Wild Yak, and Goose Island (<a href="http://cub.com.au/beer/">SAB</a>). </p>
<p>Even soft drink manufacturers, like Coca Cola Amatil have moved into the market, <a href="https://www.ccamatil.com/en/our-businesses-and-brands/our-brands">snapping up brands</a> like Blue Moon and Yenda, and last week <a href="https://www.beerandbrewer.com/feral-brewing-100-per-cent-sold/">Coca Cola</a> purchased <a href="https://www.beercartel.com.au/blog/2016-australian-craft-beer-survey-results/">the iconic</a> Feral Brewing. </p>
<p>Our <a href="https://www.choice.com.au/food-and-drink/drinks/alcohol/articles/craft-beer-who-owns-your-favourite">major supermarkets are also getting in on the action</a>, producing private label craft beers like Steamrail Ale (Coles) and Sail and Anchor (Woolworths). </p>
<h2>The rise of craft beer</h2>
<p>After decades of consolidation and homogenisation in the beer sector, craft brewing <a href="https://www.craftbeer.com/craft-beer-muses/the-roots-of-american-craft-brewing">emerged out of a grassroots culture of home brewing</a>. It caught on because beer drinkers <a href="https://www.beercartel.com.au/blog/2017-australian-craft-beer-survey-results/">were drawn</a> to notions of beer being artisanal and “hand crafted”, using quality ingredients. </p>
<p>There were also many motivations for the craft brewers themselves. Savvy business people <a href="http://www.colliers.com/-/media/files/marketresearch/unitedstates/2015-brewery-report/breweryreport2015-11-2-optimized.pdf">saw an opportunity</a> to exploit a beer segment experiencing growth through product differentiation. </p>
<p><a href="https://www.smartcompany.com.au/growth/what-it-takes-to-run-a-successful-craft-beer-business-in-australia">Others</a> responded to dietary gaps in that market, producing beer with low carbs or that is gluten free. <a href="http://www.abc.net.au/news/rural/2017-05-12/craft-beer-lover-pours-passion-on-his-hops-crop/8516340">Many</a> simply wanted to share their passion for beer with others. </p>
<p>At the same time, Australians are also <a href="https://www.wfa.org.au/assets/Health/DrinkWise-Australian-Drinking-Habits-2007-vs-2017-August2017.pdf">moderating their drinking</a>. This has implications not only for how much we drink, but what we drink - we’re drinking less pre-mixed drinks and experimenting more with mid-strength beers and other “premium” products. </p>
<p><a href="http://www.euromonitor.com/beer-in-australia/report">Research</a> also suggests that younger consumers are partly driving the uptake of craft beers. They have gained exposure to international beers while travelling, and view alcohol consumption as more of an experiential event, something that should be driven by uniqueness and novelty.</p>
<h2>Why are craft breweries selling out?</h2>
<p>Like all business, many craft breweries reach a point that in order to grow, they <a href="http://fortune.com/2015/10/10/craft-beer-sell-out/">need access to capital and expertise</a>. Selling to a global beer producer provides <a href="http://www.abc.net.au/news/2017-07-14/why-craft-beer-brands-are-struggling-to-find-a-place-at-the-taps/8705828">greater access to distribution channels</a>, advanced technology, marketing and management expertise, as well as global expansion opportunities.</p>
<p>While some brewers are happy to stay small, <a href="https://www.brewsnews.com.au/2010/03/15/the-economics-of-microbrewing/">many</a> seek growth opportunities in order to reduce costs of doing business. The <a href="https://theconversation.com/despite-our-growing-taste-for-craft-brews-smaller-beer-makers-face-a-huge-disadvantage-79984">economics of brewing</a> disadvantages smaller brewers - they face higher costs for raw materials and other inputs. Joining up with a large producer means craft brewers can take advantage of economies of scale or simply maintain market share in a crowded market.</p>
<p>For the big companies, buying into craft brewing is a no brainer. The size and growth of the sector has largely <a href="http://beveragetradenetwork.com/en/btn-academy/articles/insights-on-australian-craft-beer-industry-448.htm">come at the expense</a> of traditional, mass produced beer. Just as soft drink manufacturers have <a href="https://www.businessinsider.com.au/coke-and-pepsis-bottled-water-strategy-2016-2?r=US&IR=T">diversified into bottled water</a>, craft brewing is an opportunity for big companies to tap into a fast growing market. </p>
<p>In fact, as the market for mainstream beer flat lines, big beer producers are left with only two choices; invent their own craft beers or buy craft breweries. </p>
<h2>The downside of selling out</h2>
<p>But there is a downside to all of this consolidation. <a href="https://www.beercartel.com.au/blog/2017-australian-craft-beer-survey-results/">Surveys show</a> that the story of “independent ownership” is a large part of why drinkers buy craft beers. </p>
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<p>When a small brewery sells out to a multinational corporation, consumers can experience something psychologists call “<a href="http://study.com/academy/lesson/incongruence-in-psychology-definition-lesson-quiz.html">incongruence</a>”. Brand congruency happens when everything is aligned – the message, the story, the production, the ownership.</p>
<p>So when consumers realise that the artisanal craft beer they are drinking is not owned by a small local independent brewer, they will likely become disillusioned. </p>
<hr>
<p>
<em>
<strong>
Read more:
<a href="https://theconversation.com/beer-behemoths-struggle-to-fend-off-craft-brew-craze-47908">Beer behemoths struggle to fend off craft brew craze</a>
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</em>
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<p>Craft brewers themselves also face problems with moving from a private business model, to one controlled by many shareholders, boards and commercial stakeholders. The <a href="https://www.mckinsey.com/business-functions/organization/our-insights/the-five-attributes-of-enduring-family-businesses">focus shifts</a> from flexibility, small batch size, product innovation and hands-on craftsmanship, to profit margins and dividends.</p>
<p>This is something Brendan Varis, the previous owner of Feral Brewing appeared to struggle with in making the decision to sell to Coca Cola Amatil. He is <a href="http://www.drinkscentral.com.au/4751?Article=coca-cola-amatil-buys-feral-brewing">reported</a> to have given three conditions to the sale, including that the primary goal of the brewery would remain to make beer that the team loved to drink. </p>
<p>In the end, it is likely the craft beer segment will continue to grow, as recent taste and lifestyle trends continue to favour the segment. Accordingly, global beer and soft drink producers will continue to expand in this market though takeovers and acquisitions. But this is unlikely to be the end of the story, drinkers may soon see the emergence of <a href="https://www.beveragedaily.com/Article/2016/10/28/What-s-next-for-craft-beer">two new segments</a> – mass-craft and “true” craft.</p><img src="https://counter.theconversation.com/content/85668/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Gary Mortimer does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Craft beer is exploding in popularity, but it’s big corporations that are taking the bulk of the market.Gary Mortimer, Associate Professor, Queensland University of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/697082016-12-16T02:11:06Z2016-12-16T02:11:06ZThe price is not right: how much is too much for a beer at sporting events?<figure><img src="https://images.theconversation.com/files/149012/original/image-20161207-25727-19ca7gm.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Fans in Australia are held to ransom if they want to enjoy a beer at the footy or cricket.</span> <span class="attribution"><span class="source">AAP/Dave Hunt</span></span></figcaption></figure><p>For many Australian sports fans, buying beer at sporting venues is an exercise in subjugation. For starters, the alcohol content for those in general admission is often capped at mid-strength – a typically penal restriction aimed at civilising the riff-raff.</p>
<p>Yet the true indignity arrives right at the dreaded moment the attendant rings up the till. By the time you have handed over the cost of a round, you’ve just paid for the better part of a three-course meal at a decent restaurant. </p>
<h2>High prices</h2>
<p>Fans at the 2014 football World Cup in Brazil were able to buy a local Brahma beer for <a href="http://www.dailymail.co.uk/sport/worldcup2014/article-2640620/World-Cup-stadiums-food-beverage-prices-revealed-cheaper-expected-drink-that.html">as little as R$10</a> (A$3.97). Yet not only are the Germans football world champions, but their elite Bundesliga leads the way in beer prices. The average cost of a beer in the league is <a href="https://www.statista.com/statistics/510736/average-price-of-beer-german-professional-football/">less than €4</a> (A$5.59). </p>
<p>Elsewhere in Europe, a pint of beer costs on average £3.99 (A$6.76) at English Premier League venues. Yet fans in Australia can be held to ransom if they want to enjoy a beer at the footy or cricket. </p>
<p>Ahead of this year’s third cricket Test, the Adelaide Oval was criticised for <a href="http://www.adelaidenow.com.au/news/south-australia/big-jump-in-food-drink-prices-at-adelaide-oval-for-the-third-test-between-australia-and-south-africa/news-story/49545f40d881e575b232df2287ff45a6">planning to raise</a> its already high price of beer to A$9.20. Following public pressure prices <a href="http://www.adelaidenow.com.au/news/south-australia/beer-pie-and-water-prices-cut-for-test-at-adelaide-oval-in-face-of-public-pressure/news-story/a2922bbec228ec5abddb2ff3e36db93d">were held</a> at A$8.90 (for 425ml). </p>
<p>However, beer at Adelaide is better value than Domain Stadium in Perth, where <a href="https://www.ozbargain.com.au/node/208982">$8 only buys 330ml of beer</a>. Compared to the <a href="http://www.pintprice.com/region.php?/Australia/AUD.htm">average price of beer in Australia</a> ($6.44 for a lager) it is clear that stadium prices are at a premium.</p>
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<p>Different serving sizes can often mask higher prices, making it hard for a fan to tell if a $5.40 Carlton Draught at the MCG is better value than paying $8 for a Carlton Mid at the SCG. Stadiums may boast that their beer is cheaper than another – but such claims can be misleading, and fans can be exploited.</p>
<h2>The global picture</h2>
<p>Exchange rates make global price comparisons even more difficult and leave fans at the mercy of stadium operators. But, surprisingly, when beer sizes and prices are standardised, Australian venues don’t fare too badly. </p>
<p>Although Australian stadiums don’t measure up to some of their European counterparts, beer is generally cheaper here than at North American venues. Ahead of the pack in this beer swindle are the Philadelphia Eagles, which charge US$8.50 (A$11.50) for a 12oz (355ml) beer. </p>
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<p>The food and drink served at stadiums have long been a point of angst for sport-mad Australians. <a href="https://www.westernsydney.edu.au/newscentre/news_centre/more_news_stories/pies_the_limit-_research_shows_sporting_fans_fed_up_with_stadium_food">Research</a> shows fans are not satisfied with the price, quality and service of this element of the fan experience. They are frustrated by the limited options of weak, poor-quality beer at stadiums. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/148481/original/image-20161203-25685-x1xtmg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/148481/original/image-20161203-25685-x1xtmg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/148481/original/image-20161203-25685-x1xtmg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=331&fit=crop&dpr=1 600w, https://images.theconversation.com/files/148481/original/image-20161203-25685-x1xtmg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=331&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/148481/original/image-20161203-25685-x1xtmg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=331&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/148481/original/image-20161203-25685-x1xtmg.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=416&fit=crop&dpr=1 754w, https://images.theconversation.com/files/148481/original/image-20161203-25685-x1xtmg.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=416&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/148481/original/image-20161203-25685-x1xtmg.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=416&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Worst aspect of match experience according to Australian fans.</span>
<span class="attribution"><span class="source">Keith Parry</span></span>
</figcaption>
</figure>
<p>Overseas stadiums leave many Australian venues far behind when it comes to choice. Australian fans may drink large quantities of beer at games, but they are increasingly looking for higher-quality offerings – and <a href="http://www.abc.net.au/news/2016-08-06/craft-beer-australia-changing-drinking-habits/7677250">craft beer in particular</a>. Craft beer consumption <a href="https://theconversation.com/small-brands-big-impact-why-craft-beer-is-top-of-the-hops-13972">is increasing in Australia</a>, but the trend is yet to infiltrate Australian sport. </p>
<p>Throughout the US, however, it is standard to find five or ten locally brewed and independent craft beers on tap at major venues. For example, Major League Soccer (MLS) side Sporting Kansas City has Boulevard Brewing on its concession stands. And the Tap Room public bar at Miami’s Hard Rock Stadium features close to 50 craft beer options from across Florida. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/148683/original/image-20161205-14347-rve221.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/148683/original/image-20161205-14347-rve221.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/148683/original/image-20161205-14347-rve221.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=449&fit=crop&dpr=1 600w, https://images.theconversation.com/files/148683/original/image-20161205-14347-rve221.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=449&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/148683/original/image-20161205-14347-rve221.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=449&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/148683/original/image-20161205-14347-rve221.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=565&fit=crop&dpr=1 754w, https://images.theconversation.com/files/148683/original/image-20161205-14347-rve221.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=565&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/148683/original/image-20161205-14347-rve221.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=565&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Tap Room at Hard Rock Stadium.</span>
<span class="attribution"><span class="source">Blair Hughes</span></span>
</figcaption>
</figure>
<p>Closer to home, Wellington’s Westpac Stadium has partnered with local brewery Garage Project to feature its range of craft beers along with a rotating selection of New Zealand craft beers. </p>
<figure class="align-center zoomable">
<a href="https://images.theconversation.com/files/149349/original/image-20161208-31402-27nwot.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/149349/original/image-20161208-31402-27nwot.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/149349/original/image-20161208-31402-27nwot.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/149349/original/image-20161208-31402-27nwot.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/149349/original/image-20161208-31402-27nwot.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/149349/original/image-20161208-31402-27nwot.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/149349/original/image-20161208-31402-27nwot.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/149349/original/image-20161208-31402-27nwot.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">The Garage Project partnership at Wellington’s Westpac Stadium.</span>
<span class="attribution"><span class="source">Blair Hughes</span></span>
</figcaption>
</figure>
<h2>Advances in beer services</h2>
<p>Technology is playing a part in the push for implementing craft beer.</p>
<p>Dodger Stadium in Los Angeles <a href="https://www.thrillist.com/drink/nation/dodgers-stadium-frozen-beer-foam">created</a> a special, technologically advanced, ice-cream-type foam that sits atop beer cups to keep it ice-cold for longer. And self-serve beer vending machines are on the rise throughout American stadiums to serve both quality beer options while cutting down the time fans are away from their seats. </p>
<p>Collaborations between teams, stadiums and craft beer breweries are on the rise. Teams such the NFL’s <a href="http://www.stbcbeer.com/one-buffalo-our-beer/">Buffalo Bills</a> and MLS side DC United have their own lines of pale ales for fans. </p>
<p>In England, football clubs including Reading FC have called on fans to name their new match-day pale ale. West Ham United’s new ground features two types of craft beer – <a href="http://www.claretandhugh.info/refreshes-the-parts-of-stadia-other-beers-cannot-reach/">Boleyn Bitter</a> and Iron Ale. This further highlights the emphasis that stadiums and teams are placing on engaging with fans through quality craft beer. </p>
<p>With falling attendance numbers in many Australian venues, there is a need for an improved fan experience to attract stay-away fans, particularly as sports teams are competing with a growing number of alternative entertainment options.</p>
<p>Given the <a href="http://theconversation.com/a-brief-history-of-alcohol-consumption-in-australia-10580">importance of alcohol to Australians</a>, sports teams can score an easy win by offering more varied and higher-quality beer at games. Fans are irritated when they are continually offered mid-strength beer; they are demanding more for their money. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/150403/original/image-20161215-26032-1lqymbh.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/150403/original/image-20161215-26032-1lqymbh.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=450&fit=crop&dpr=1 600w, https://images.theconversation.com/files/150403/original/image-20161215-26032-1lqymbh.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=450&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/150403/original/image-20161215-26032-1lqymbh.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=450&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/150403/original/image-20161215-26032-1lqymbh.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=566&fit=crop&dpr=1 754w, https://images.theconversation.com/files/150403/original/image-20161215-26032-1lqymbh.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=566&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/150403/original/image-20161215-26032-1lqymbh.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=566&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Fans are irritated and frustrated when they are continually offered mid-strength beer.</span>
<span class="attribution"><span class="source">Blair Hughes</span></span>
</figcaption>
</figure>
<h2>The way forward</h2>
<p>Australian stadiums should look overseas for innovations in their beer offerings. Here are seven suggestions for satisfying thirsty stadium-goers: </p>
<ul>
<li><p>prices published online to allow fans to make informed choices and to allow comparison; </p></li>
<li><p>better options of local independent craft beer made available;</p></li>
<li><p>teams to collaborate with local breweries for team-branded beers for fans;</p></li>
<li><p>cup-holders in stadium seating so beers stay colder for longer;</p></li>
<li><p>designated driver programs, where fans receive free soft drinks in exchange for being the designated driver for their friends (a very popular program at US stadiums); </p></li>
<li><p>ice-foam technology to keep beers colder for longer; and</p></li>
<li><p>no charge for beer trays.</p></li>
</ul>
<figure class="align-right zoomable">
<a href="https://images.theconversation.com/files/148672/original/image-20161205-14309-r8rwvn.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img alt="" src="https://images.theconversation.com/files/148672/original/image-20161205-14309-r8rwvn.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=237&fit=clip" srcset="https://images.theconversation.com/files/148672/original/image-20161205-14309-r8rwvn.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=800&fit=crop&dpr=1 600w, https://images.theconversation.com/files/148672/original/image-20161205-14309-r8rwvn.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=800&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/148672/original/image-20161205-14309-r8rwvn.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=800&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/148672/original/image-20161205-14309-r8rwvn.JPG?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=1005&fit=crop&dpr=1 754w, https://images.theconversation.com/files/148672/original/image-20161205-14309-r8rwvn.JPG?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=1005&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/148672/original/image-20161205-14309-r8rwvn.JPG?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=1005&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px"></a>
<figcaption>
<span class="caption">Beer options at ANZ Stadium, Sydney.</span>
<span class="attribution"><span class="source">Blair Hughes</span></span>
</figcaption>
</figure>
<p>There have been some recent changes to the typical restricted drinks menus on offer. A small number of stadiums throughout Australia are now selling craft beers, but these are still a minority.</p>
<p>After speaking with stadium representatives to gauge the interest in offering local independent craft beer options, many have suggested that fans will soon likely see more availability of locally produced brews, albeit in small quantities to keep pourage rights holders and catering companies happy.</p>
<p>The stadium fan experience is evolving at a rapid pace, with global venues locked in an arms race to improve, revolutionise, and add value to the offering for fans on match days. There is a concerted effort to listen to fans’ concerns and get them out of their home sport caves and into the ground.</p><img src="https://counter.theconversation.com/content/69708/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.</span></em></p>Overpriced and low-quality beer at sports stadiums leaves fans feeling exploited. Here’s how that can change.Keith Parry, Lecturer in Sport Management, Western Sydney UniversityBlair Hughes, PhD Candidate, Western Sydney UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/567912016-05-04T10:11:18Z2016-05-04T10:11:18ZCan you imagine a world without Budweiser? We can<figure><img src="https://images.theconversation.com/files/121078/original/image-20160503-17469-13kpvo8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Long live the king?</span> <span class="attribution"><span class="source">Bud beer via www.shutterstock.com</span></span></figcaption></figure><p>Budweiser, the so-called King of Beers, may be on its last kegs.</p>
<p>It may seem odd to picture the demise of the flagship brand of the world’s largest beer company. But Anheuser-Busch – the U.S.-based unit of AB InBev – is following in the footsteps that led to the irrelevance of a host of other once-dominant companies – <a href="http://www.forbes.com/sites/daviddisalvo/2011/10/02/what-i-saw-as-kodak-crumbled/#6727d0e920f5">Eastman Kodak</a>, <a href="http://www.nytimes.com/1997/07/18/business/woolworth-gives-up-on-the-five-and-dime.html">Woolworth’s Department Stores</a>, <a href="http://www.innosight.com/innovation-resources/upload/Disruptive-Innovation-Primer.pdf">Bethlehem Steel</a> and <a href="https://hbr.org/2013/11/blockbuster-becomes-a-casualty-of-big-bang-disruption">Blockbuster Video</a>, to name a few. </p>
<p>While AB InBev <a href="http://fortune.com/2015/10/30/ab-inbev-earnings/">shareholders are cheering</a> each move to boost short-term profitability by snapping up other companies – <a href="http://www.bloomberg.com/news/articles/2016-01-14/ab-inbev-faces-in-depth-u-s-antitrust-review-on-sabmiller-deal">including the US$110 billion takeover</a> of rival SABMiller – CEO Carlos Brito may be unwittingly digging Anheuser-Busch’s grave by ignoring long-term trends. </p>
<p>How could the rational pursuit of profits and growth through acquisition mean the beginning of the end for Anheuser-Busch? </p>
<p>This, we would argue, is a case of <a href="https://hbr.org/2015/12/what-is-disruptive-innovation">disruption theory</a> in action. And the disruptors are the growing ranks of craft brewers that are collectively changing the industry and beer consumption habits as consumers <a href="http://www.businessinsider.com/many-millennials-havent-tried-budweiser-2014-11">increasingly shun Anheuser-Busch and its products</a> – the disrupted – for beers made locally and with a wider variety of higher-quality ingredients. </p>
<p>It’s something we’ve witnessed firsthand, in our own research and through an online community called <a href="http://craftingastrategy.com/">Crafting A Strategy</a> that two of us set up to share knowledge in the beer industry.</p>
<iframe src="https://datawrapper.dwcdn.net/ftDmm/1/" frameborder="0" allowtransparency="true" allowfullscreen="allowfullscreen" webkitallowfullscreen="webkitallowfullscreen" mozallowfullscreen="mozallowfullscreen" oallowfullscreen="oallowfullscreen" msallowfullscreen="msallowfullscreen" width="100%" height="450"></iframe>
<h2>New market disruption</h2>
<p>Harvard Business School Professor Clay Christensen coined the phrase “<a href="http://www.claytonchristensen.com/books/the-innovators-solution/">disruptive innovation</a>” in 1995 to describe how a new product or service initially takes root at the bottom of a market and then relentlessly moves upmarket, eventually displacing established competitors.</p>
<p>Eight years later he and Michael Raynor <a href="http://www.claytonchristensen.com/key-concepts/">described three criteria needed for a new market disruption</a> to occur. </p>
<p>Let’s consider each criterion in turn in the case of the beer industry. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/121091/original/image-20160504-17469-le5ax4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/121091/original/image-20160504-17469-le5ax4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=380&fit=crop&dpr=1 600w, https://images.theconversation.com/files/121091/original/image-20160504-17469-le5ax4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=380&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/121091/original/image-20160504-17469-le5ax4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=380&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/121091/original/image-20160504-17469-le5ax4.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=478&fit=crop&dpr=1 754w, https://images.theconversation.com/files/121091/original/image-20160504-17469-le5ax4.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=478&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/121091/original/image-20160504-17469-le5ax4.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=478&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Prohibition became the law of the land in 1919.</span>
<span class="attribution"><a class="source" href="https://www.flickr.com/photos/cizauskas/23789036064/in/photolist-Cfa2Cd-9bs2sF-obEyZU-dk3poM-ouz5H9-7DeB9p-6Xgo91-ouVAYi-oweSZp-6WUUvH-oddooH-oeYXys-nz4Qm8-ouXWRm-pUqcsJ-qbmZJ6-4ibvW3-5J7PVM-oeY8Ew-ocTPLB-oeXqP4-7DhpHQ-ouzXDg-oeYEFZ-ounf4R-owJPpn-ouyhFi-9bs2r6-oeZcwg-owqsx7-bB1VZX-wk3ubf-ou9B2A-wjPpuY-oeSB9H-9bv9i3-ouvX7n-ouTRU8-ouxyG9-odHtcH-ouAk8P-ov2BRj-osRPBu-hyBGRd-owPV1n-owTmND-ouTCaz-oeS9gf-oeYKMa-of1HHj">Flickr/Thomas Cizauskas</a></span>
</figcaption>
</figure>
<p><strong>1. Large populations of consumers who have not had the means to make the product themselves and have gone without it altogether.</strong></p>
<p>For most of the 20th century, high-quality craft beer was in short supply. </p>
<p>The bigger brewers mass-produced what one <a href="https://books.google.com/books?id=JMVSUEjTCWgC&pg=PA48&lpg=PA48&dq=We+don%E2%80%99t+make+beer;+we+make+flavored+water+for+people+who+don%E2%80%99t+like+beer&source=bl&ots=fw6q7qdsbl&sig=A5XO2jBw5MFH-9ILzTMcmRmP-ro&hl=en&sa=X&ved=0ahUKEwjTlu2p_7PMAhVBqh4KHc8XCFMQ6AEIHDAA#v=onepage&q=We%20don%E2%80%99t%20make%20beer%3B%20we%20make%20flavored%20water%20for%20people%20who%20don%E2%80%99t%20like%20beer&f=false">anonymous Midwest “braumeister” described</a> as “flavored water,” while home brewing <a href="http://www.homebrewersassociation.org/homebrewing-rights/statutes/">was illegal</a> in the U.S. until relatively recently. </p>
<p>In the <a href="http://www.sciencedirect.com/science/article/pii/S0007681304001004">words of Bill Coors, Adolph Coors chairman and CEO,</a> in 1987: </p>
<blockquote>
<p>You could make Coors from swamp water and it would be exactly the same.</p>
</blockquote>
<p>The repeal of Prohibition in 1933 didn’t include home brewing, which meant few people knew how to brew and new brewery start-ups were rare. The <a href="https://eh.net/encyclopedia/a-concise-history-of-americas-brewing-industry/">number of brewers</a> dwindled from several thousand prior to Prohibition to about 100 in the late ‘70’s.</p>
<p>That marked a turning point, as a new federal law finally made home brewing legal again. But other laws remained in force in the '80’s and '90’s that didn’t allow early craft brewers to sell directly to consumers, forcing them to first sell to a wholesaler that would then distribute the beer to a retail grocer or bar. This system meant the only way to make a reasonable profit was <a href="http://beeronomics.blogspot.com/2011/10/on-brewpubs-and-economies-of-scale.html">to go big and leverage economies of scale</a> to ensure your product was featured by distributors. </p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/121092/original/image-20160504-22761-1gqhpm8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/121092/original/image-20160504-22761-1gqhpm8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=458&fit=crop&dpr=1 600w, https://images.theconversation.com/files/121092/original/image-20160504-22761-1gqhpm8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=458&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/121092/original/image-20160504-22761-1gqhpm8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=458&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/121092/original/image-20160504-22761-1gqhpm8.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=576&fit=crop&dpr=1 754w, https://images.theconversation.com/files/121092/original/image-20160504-22761-1gqhpm8.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=576&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/121092/original/image-20160504-22761-1gqhpm8.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=576&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">Revelers celebrate with a pint after prohibition is repealed.</span>
<span class="attribution"><span class="source">Bar drinking via www.shutterstock.com</span></span>
</figcaption>
</figure>
<p><strong>2. Customers who use the product need to go to an inconvenient, centralized location.</strong> </p>
<p>There were <a href="https://www.brewersassociation.org/statistics/number-of-breweries/">only 89 breweries in America in the late 1970s</a>, and their distribution model meant that consumers had very few choices. In particular, they had inconvenient or no access to craft beer. They generally drank Bud, Pabst, Schlitz, Miller, Coors, etc. By 1981, these brewers <a href="https://eh.net/encyclopedia/a-concise-history-of-americas-brewing-industry/">controlled 76 percent</a> of the U.S. market. </p>
<p>In other words, you had a large population without easy access to well-crafted beer and a system that centralized production and tightly controlled distribution. This created an opportunity for disruption, in the view of <a href="https://hbr.org/2012/12/surviving-disruption">Christensen.</a> The question was, would something change that allowed a larger population to make beer and sell the product more directly to consumers?</p>
<p><strong>3. A technology/business model is developed so that a large population can begin owning and using, in a more convenient context, something that historically was available only in a centralized, inconvenient location.</strong> </p>
<p>In the beer story, that game-changing innovation was the brewpub business model. This became possible after laws began to change in the <a href="http://www.beerhistory.com/library/holdings/chronology.shtml">1980s</a> to allow over-the-counter sales of beer produced in-house. </p>
<p>Yakima Brewing and Malting Inc. opened in Washington state in 1982 and was closely followed by California’s <a href="http://www.californiacraftbeer.com/the-history-of-craft-beer-in-california/">Mendocino Brewing</a> in 1983. The advent of microbreweries coincided with <a href="https://hbr.org/2015/10/why-more-mas-is-a-sign-that-scale-is-no-longer-an-advantage">other industry trends</a> that made it easier to make a profit from small production. There was also growing <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2620918">ideological opposition</a> to <a href="http://pubsonline.informs.org/doi/abs/10.1287/orsc.2015.1000">the incumbent sector</a>.</p>
<p>Collectively, these changes drove the craft beer revolution in the U.S.</p>
<p>Noted beer historian <a href="https://eh.net/encyclopedia/a-concise-history-of-americas-brewing-industry/">Dr. Martin Stack</a> summed up the innovation this way: </p>
<blockquote>
<p>Microbreweries represented a new strategy in the brewing industry: rather than competing on the basis of price or advertising, they attempted to compete on the basis of inherent product characteristics. </p>
</blockquote>
<p>The result? The number of new breweries has grown exponentially, <a href="http://www.bloomberg.com/news/articles/2016-03-22/i-ll-toast-to-that-u-s-brewery-count-hits-all-time-record">recently surpassing the 1873 U.S. record of 4,131 breweries</a> that now occupy every state. </p>
<h2>Why disruption works</h2>
<p>Disruption works because the initial business models or technologies of the eventual disruptors don’t perform as well as existing ones, so little attention is paid by the incumbents. N. Taylor Thompson <a href="https://hbr.org/2013/09/what-markets-do-and-dont-get-about-innovation/">succinctly summarized</a> new market disruption as: </p>
<blockquote>
<p>a cheaper, more accessible, and worse-performing (business model) that turns non-consumers into customers. </p>
</blockquote>
<p>From a financial perspective, chasing a smaller group of nonconsumers (like craft beer drinkers) who want only beer that costs a lot to make seems like a relatively foolish use of assets. Instead, executives at AB InBev, which is also known for beers including Corona, Stella Artois and Michelob, understood that making light lagers at a <a href="https://finance.yahoo.com/q/ks?s=BUD+Key+Statistics">30 percent to 33 percent operating margin</a> allowed them to earn the most money out of each dollar spent. They ignored craft for so long because craft breweries typically operate on an unattractive 2-5 percent margin. </p>
<p>While being ignored, craft beer producers learned and improved without needing to focus attention on direct competition from the large incumbents, pushing operating margins higher and getting the attention of wholesalers who were keen to the <a href="http://www.mckinseyonmarketingandsales.com/a-perfect-storm-brewing-in-the-global-beer-business">changing buying habits among beer drinkers</a>. As a result, their operating margins soared, even as their scale remained relatively small. Boston Beer Company’s operating margins, for example, <a href="https://finance.yahoo.com/q/ks?s=SAM+Key+Statistics">have crept up to 16.3 percent</a>. </p>
<p>The <a href="https://www.brewersassociation.org/statistics/national-beer-sales-production-data/">numbers say it all</a>: while overall beer sales fell 0.2 percent in 2015, sales of craft surged 12.8 percent. Bigger craft brewers <a href="http://www.npr.org/sections/thesalt/2014/05/28/316317087/big-breweries-move-into-small-beer-town-and-business-is-hopping">are building factories</a> all over the U.S., and <a href="http://jom.sagepub.com/content/40/2/483">pipelines of expertise</a> are flowing toward craft as Anheuser-Busch executives migrate over.</p>
<p>But AB InBev’s response continues to follow the “disrupted” playbook and typical strategy for mature companies: mergers and acquisitions to defend their existing space and to increase average margins through economies of scale.</p>
<p>Most recently, the company agreed to buy fellow behemoth SABMiller, maker of dozens of beers including Leinenkugel’s, Miller Lite and Peroni and another brewer chasing the same high-margin beers American consumers <a href="http://www.wsj.com/articles/budweiser-ditches-the-clydesdales-for-jay-z-1416784086%22%22">increasingly shun</a>. Even attempts by SABMiller’s American division, MillerCoors, <a href="http://www.bloomberg.com/news/articles/2013-08-08/blue-moon-vs-dot-craft-beer-rivals-millercoors-strikes-back">to create “crafty”</a> beers are increasingly dismissed by consumers.</p>
<p>Here’s the irony: this merger <a href="http://craftingastrategy.com/blog/give-me-profitability-and-give-me-death">equates to</a> chasing a 30-33 percent margin on a $2 product (about $0.62) instead of investing in craft processes to make a 16-20 percent margin on a $5 product (about $0.90) that more and more people seem to want. </p>
<p>To make things worse for AB InBev, this craft beer movement seems to be not only spreading all over the U.S. but <a href="http://beergraphs.com/bg/238-where-in-the-world-do-people-drink-craft-beers/">also the world</a>. </p>
<h2>Chasing profits to death?</h2>
<p>Wessell and Christensen suggest that by the time incumbent firms realize a new market disruption is occurring, <a href="https://hbr.org/2012/12/surviving-disruption">it is usually too late</a>. <a href="http://www.reuters.com/article/a-b-i-ma-devilsbackbone-idUSL5N17F43V">Even a recent craft beer company buying spree</a> by Carlos Brito and AB InBev likely cannot stem the tide.</p>
<p>Case in point: its courtship of <a href="http://usopenbeer.com/2015-open/">highly acclaimed Cigar City Brewing</a> fell apart after the Tampa Bay brewer rejected AB InBev’s bid and <a href="https://cigarcitybrewing.com/oskar-blues-ccb/">opted instead</a> in March to become a part of private equity backed brewer Oskar Blues for <a href="http://www.denverpost.com/business/ci_29636788/oskar-blues-buys-cigar-city-brewing-deal-valued">$60 million</a>.</p>
<p>Cigar City likely left tens (perhaps hundreds) of millions of dollars on the table when it walked away from AB InBev. Late last year, for example, wine giant <a href="http://fortune.com/2015/11/16/constellation-brands-ballast-point/">Constellation Brands paid $1 billion</a> for the slightly larger craft brewer Ballast Point from California. </p>
<p>At the time, <a href="http://www.brewbound.com/news/fireman-capital-to-purchase-cigar-city">Cigar City founder Joey Redner said</a>:</p>
<blockquote>
<p>I was almost at the altar with someone else, but it never felt 100 percent right… It was a potentially life-changing opportunity and ultimately, I thought that I wasn’t going to be happy. No amount of money was going to make me happy.</p>
</blockquote>
<p>And his customers, the ones helping drive the trends reshaping the beer industry, must be very pleased, because AB InBev’s strategies are <a href="http://www.bloomberg.com/news/articles/2012-10-25/the-plot-to-destroy-americas-beer">creating a backlash.</a> The fear is that by buying up craft breweries they’ll end up destroying what they represent. </p>
<p>Was Cigar City’s move foolish or wise? Redner opted for less money, a better corporate fit and greater control in brewing the product Cigar City’s customers expect. </p>
<p>Regardless of whether that strategy is successful, we believe this move signals a tectonic shift in the global beer industry. Specifically, craft beer has diminished big beer’s longstanding competitive advantages built on scale, distribution and laws that minimized competition from small-scale brewers.</p>
<p><a href="https://hbr.org/2002/12/the-consolidation-curve">Large breweries have now, it seems, entered a strategic decline</a>, merging and acquiring each other and <a href="http://www.bloomberg.com/news/articles/2012-10-25/the-plot-to-destroy-americas-beer">chasing profits</a> at the expense of future customers.</p>
<p>Chasing higher profitability through <a href="http://www.bloomberg.com/news/articles/2012-10-25/the-plot-to-destroy-americas-beer">lower-quality products</a> and <a href="https://theconversation.com/beer-behemoths-struggle-to-fend-off-craft-brew-craze-47908">acquisitions</a> might please shareholders, but it also fits nicely into disruption theory’s playbook where new technologies, laws, consumer awareness and business models actively work against the long-held advantages of incumbents. </p>
<p>In 20 years, will cracking open a Budweiser on a summer day still be commonplace? Or will it be a relic of times past? If AB InBev stays on its current strategic course, the latter, while tough to imagine now, is the more plausible scenario.</p><img src="https://counter.theconversation.com/content/56791/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Samuel S. Holloway owns Crafting A Strategy, an online business knowledge sharing community for the beer industry. Content from Crafting A Strategy is cited in this article. Sam is a minority percentage owner of Oakshire Brewing, a small batch craft brewery based in Eugene, OR and serves on Oakshire's board of directors as an outside director.</span></em></p><p class="fine-print"><em><span>Mark R. Meckler is co-owner of Crafting A Strategy, an online business knowledge sharing community for the beer industry. Content from Crafting A Strategy is cited in this article.</span></em></p><p class="fine-print"><em><span>Rhett Andrew Brymer does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>It may be the world’s largest beer maker, but Anheuser-Busch’s days may be numbered thanks to the rapid rise of craft brewing and a little thing called disruption.Samuel S. Holloway, Associate Professor of Strategy and Entrepreneurship, University of PortlandMark R. Meckler, Associate Professor of Management, University of PortlandRhett Andrew Brymer, Assistant Professor of Management, Miami UniversityLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/477492015-09-21T04:16:30Z2015-09-21T04:16:30ZWhen ‘hand crafted’ is really just crafty marketing<figure><img src="https://images.theconversation.com/files/95287/original/image-20150918-15847-53vxow.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">Unlike manufacturing, craft involves risk and unpredictability.</span> <span class="attribution"><span class="source">Image sourced from Shutterstock.com</span></span></figcaption></figure><p>In their attempts to cash in on peak hipster, fast-food giants are passing off assembly-line products as small scale, bespoke creations that carry an aura of moral authority.</p>
<p>Six months ago, McDonald’s opened a café in Sydney’s inner-West, where chambray-shirted baristas serve single-origin coffee alongside quinoa salads on wooden boards. The café is called The Corner, but The Guardian soon<a href="http://www.theguardian.com/lifeandstyle/australia-food-blog/2014/dec/30/the-mcdonalds-lab-disguised-as-a-hipster-cafe"> described it</a> as: “McDonald’s disguised as a hipster café”.</p>
<p>And to customers worldwide, McDonald’s launched its “artisan grilled chicken”, its “artisan roll” and other artisan-manque products. Domino’s released “Artisan Pizza”, and PepsiCo released <a href="http://calebskola.com/">Kaleb’s Cola</a>, a “craft soda” in a glass bottle bearing the notation, “Honor in Craft”. Nowhere on the bottle is mention of the multinational behind it.</p>
<p>In Australian Coles supermarkets, the Always Fresh brand is promoting its “Artisan Collection” lines as “authentic, carefully-crafted”. Its biscuits and preserves are “hand-crafted”; its crackers are “thoughtfully baked”. In the drinks isle Cascade’s “crafted” range of fizzy drinks includes (inexplicably) a “crafted for Australians” plain soda water.</p>
<p>These descriptors are lies, because mass-producers simply can’t make “craft” or “artisanal” products. These words refer to autonomous human-scale production that’s too mindfully- and bodily-involved for the assembly-line. To a craftperson, conception and physical production are inseparable, and their relationship with their craft — be it breadmaking, songwriting or neurosurgery — is somatic.</p>
<p>Division of labour completely wipes “crafting” from the fabrication process. Craft involves risk and unpredictability; manufacturing, on the other hand, involves predictable and uniform outcomes.</p>
<p>So consider the significance of McDonald’s’ current “How Very Un-McDonald’s” and “Not So Fast Food” campaigns. These campaigns invite us to custom-select ingredients on a touch-screen and enjoy table-service by — who knew? — a person. Faced with a slump in profits, the fast-food giant is experimenting with ways to shed brand-staleness and seduce a 20s-to-30s demographic that regards McDonald’s as distinctly uncool.</p>
<p>But this seems less a gesture towards slow food values and more an admission that the brand and all it represents has become déclassé. When they trade on artisanal notions of authenticity, industrial food giants deny their own, which lies in cheap, standard products manufactured with alienated labour and dispersed supply chains. You can’t be an authentic Tim-Tam if you were “thoughtfully crafted” from seasonal local ingredients.</p>
<h2>Spot the difference</h2>
<p>Corporate craft-washing campaigns may deceive some, but their mawkish descriptors betray them as sops. McDonald’s “artisan” chicken contains “pantry seasonings” (distinct from industrial flavours) and “100% chicken” (distinct from who-knows-what). Pepsi’s craft soda has “quality ingredients”, no less, devised after “months talking and tasting” (more artisanal than “focus-grouping”).</p>
<p>Genuine craft producers aren’t inclined to spruik these ways, because their customers have the culinary literacy to discern a local sourdough from an industrial soda bread. </p>
<p>In his 2014 book, “The Language of Food”, Stanford University professor <a href="https://web.stanford.edu/%7Ejurafsky/thelanguageoffood.html">Dan Jurafsky observes</a> that good quality food labels and menus tend to be short on adjectives. Marketers of industrial food, on the other hand, oversell with such descriptors as “real”, “artisan”, “quality”, “authentic” and “passionately-crafted”.</p>
<figure class="align-center ">
<img alt="" src="https://images.theconversation.com/files/95286/original/image-20150918-15814-xa9g1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" srcset="https://images.theconversation.com/files/95286/original/image-20150918-15814-xa9g1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=600&h=336&fit=crop&dpr=1 600w, https://images.theconversation.com/files/95286/original/image-20150918-15814-xa9g1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=600&h=336&fit=crop&dpr=2 1200w, https://images.theconversation.com/files/95286/original/image-20150918-15814-xa9g1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=600&h=336&fit=crop&dpr=3 1800w, https://images.theconversation.com/files/95286/original/image-20150918-15814-xa9g1.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=754&h=423&fit=crop&dpr=1 754w, https://images.theconversation.com/files/95286/original/image-20150918-15814-xa9g1.jpg?ixlib=rb-1.1.0&q=30&auto=format&w=754&h=423&fit=crop&dpr=2 1508w, https://images.theconversation.com/files/95286/original/image-20150918-15814-xa9g1.jpg?ixlib=rb-1.1.0&q=15&auto=format&w=754&h=423&fit=crop&dpr=3 2262w" sizes="(min-width: 1466px) 754px, (max-width: 599px) 100vw, (min-width: 600px) 600px, 237px">
<figcaption>
<span class="caption">US brewing giant MillerCoors is facing a class action law suit for passing off its Blue Moon brand as craft beer.</span>
<span class="attribution"><span class="source">Treasure/Flickr</span>, <a class="license" href="http://creativecommons.org/licenses/by/4.0/">CC BY</a></span>
</figcaption>
</figure>
<p>But a backlash is mounting. Following recent complaints against the craft claims of Byron Bay Beer, ACCC Chairman Rod Sims said: </p>
<blockquote>
<p>“We judged that any reasonable consumer would think that it was brewed in Byron Bay by a small Byron Bay brewing company.” </p>
</blockquote>
<p>But the beer “was a actually brewed by Carlton and United Brewery out of its large Warnervale brewery.”</p>
<p>David Hollier, president of the Australian Real Craft Brewers Association, <a href="http://www.abc.net.au/radionational/programs/blueprintforliving/craft-beer/6480412">said</a> craft beer drinkers believe they are “supporting authentic small, independent… local family-owned breweries. The big two brewers have capitalised on that”.</p>
<p>But CUB was fined A$20,400, and similar cases are emerging overseas. Californian man Evan Parent recently sued brewing giant MillerCoors for claiming its Blue Moon beer is “artfully crafted”. His lawyer <a href="http://www.nydailynews.com/news/national/calif-man-claims-millercoors-blue-moon-deceives-customers-article-1.2209213">Jim Treglio told reporters</a>: </p>
<blockquote>
<p>“People think they’re buying craft beer and they’re actually buying crafty marketing.”</p>
</blockquote>
<p>Even insiders are rebelling against such marketing. Last year, the ACCC received “industry intelligence” that Saskia Beer’s “Black Pig” products contained white pig meat. Heritage black pig breeds can be more free-ranging than white pigs, as they are less susceptible to sunburn. The company was ordered to undergo compliance training and publish a corrective notice.</p>
<p>Similarly, Pirovic Enterprises was <a href="http://www.theguardian.com/world/2014/sep/23/pirovic-egg-company-fined-300000-for-misleading-free-range-claims">fined A$300,000</a> for claiming its eggs were free-range. “Although there were no strict legal definitions of free-range, the court was able to base its findings on consumers’ expectations about what that particular form of farming should involve”, said Associate Professor Jeannie Paterson from the University of Melbourne’s Law School.</p>
<p>The same principle, she says, was applied when <a href="http://www.abc.net.au/news/2015-04-10/coles-fined-millions-over-false-freshly-baked-bread-claims/6383062">Coles was fined A$2.5 million</a> over “freshly baked” bread claims, when the bread was first par-baked in Ireland.</p>
<p>Over there, the Food Safety Authority is reportedly clamping down on “artisan”, “traditional” and “farmhouse” claims, warning that these should only describe products made “in limited quantities by skilled craftspeople” at a “micro-enterprise”, and ingredients should be local where possible. Last week, the Authority <a href="http://www.irishtimes.com/news/ireland/irish-news/mcdonald-s-artisan-burger-fails-to-cut-mustard-with-authority-1.2335556">ordered McDonald’s</a> to remove artisan claims. This is a regulatory trend moving across Europe and the US, and in Australia, the ACCC is also devising guidelines.</p>
<p>Artisan-posturing by industrial producers isn’t just a matter of regulatory transgressions. Industrial food giants who “craft-wash”, or use idioms of craft while trashing its essential values, are actively obscuring a set of political issues. Ethical consumers are often well-heeled, for sure, but their deep pockets attend to a deeper commitment to small enterprise, localism, fair trade, ethical supply chains, seasonal produce, farm animal welfare, workers’ freedoms and low environmental impact.</p>
<p>Australian consumer law prohibiting deceptive conduct “does not just apply to deliberate lies,” says Paterson. “It also covers conduct that creates a misleading impression by manipulating common community understandings.” So as artisanal deceptions continue to mount, so, too, do the legal precedents for a foodie-pundit backlash.</p><img src="https://counter.theconversation.com/content/47749/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Katherine Wilson does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.</span></em></p>In a bid to capitalise on the “artisanal” trend, fast food companies are craft-washing their mass produced products.Katherine Wilson, PhD Candidate, journalist, Swinburne University of TechnologyLicensed as Creative Commons – attribution, no derivatives.tag:theconversation.com,2011:article/474802015-09-17T04:46:11Z2015-09-17T04:46:11ZCraft beer: South Africans wake up late in their search for authenticity<figure><img src="https://images.theconversation.com/files/94807/original/image-20150915-16979-ng8z7p.jpg?ixlib=rb-1.1.0&q=45&auto=format&w=496&fit=clip" /><figcaption><span class="caption">The craft beer craze has taken hold of South Africa with many independent breweries making a name for themselves.</span> <span class="attribution"><span class="source">www.shutterstock.com</span></span></figcaption></figure><p>When the Wort Hog Brewers homebrewing club was officially founded in 1997 (after having been a smaller concern since 1993), there were two small-scale breweries - (<a href="http://www.mitchellsbrewing.com/">Mitchell’s</a> and <a href="http://www.draymans.co.za/">Drayman’s</a>) - in South Africa, with limited distribution. </p>
<p>These breweries were different from the large multinational brewing companies in the volumes they produced, the scale of their operations and the range of flavours in their beers.</p>
<p>Many people had taken up homebrewing to get their hands on beers like the ones they had tasted in Germany and England, which were quite unlike the bland lagers that were available at their local liquor store. The smaller scale of the processes in these small breweries also allowed for the idea that you could know the person who formulated the recipe and brewed the beer.</p>
<p>This small scale, speciality product and hands-on approach are pretty good defining characteristics of what makes a “craft” brewery, but the exact volumes, the nature of the product and the amount of personal interaction which will qualify or push a brewery over the edge into commercial territory differs by region.</p>
<p>In contrast to 1997, there are currently <a href="yourbeer.info">more than 150</a> craft breweries in South Africa, many shipping their products around the country. There are even <a href="http://www.leagueofbeers.com/">online services</a> where you can order home delivery of craft beer and it is becoming commonplace to expect a craft beer or two on tap at your local eatery. Why has this happened, and why now, given the long history of beer?</p>
<p>This boom appears to follow the <a href="https://www.brewersassociation.org/press-releases/craft-brewer-volume-share-of-u-s-beer-market-reaches-double-digits-in-2014/">trend set in America</a>, where large-scale commercial breweries declined steadily from around 800 after Prohibition ended to fewer than 60 in 2013 while craft breweries grew from nothing to 1500 in the same time. Their boom started in the 1990s, while ours is about 10 years behind.</p>
<h2>Return to authenticity</h2>
<p>Perhaps this demand in South Africa is driven by a return to authenticity and a sense of connection with a brewer or a brand, in opposition to the <a href="http://blog.euromonitor.com/2015/09/big-brewers-continue-to-pursue-craft-in-the-us-in-search-of-growth.html">faceless multinationals</a> brewing the bland lagers which have been the baseline for beer in the past. Establishments featuring local beers appeal to the modern drive for <a href="http://www.forbes.com/pictures/gjmj45gih/1-locally-sourced-everyt/">local eating</a> and small-scale artisanal products. </p>
<p>It’s no surprise that Google Trends reports a <a href="https://www.google.com/trends/explore#q=hipster">tenfold increase</a> in searches for ‘hipster’ between 2009 and 2015. The <a href="http://www.theatlantic.com/entertainment/archive/2012/11/sincerity-not-irony-is-our-ages-ethos/265466/">hipster ethos</a> is permeating our culture as well. Their focus on sincerity and handmade, <a href="https://www.etsy.com/">quirky</a> consumer items resonates with the craft beer industry’s values. Mainstream marketing has also shifted to highlight <a href="http://www.castlemilkstout.co.za/about/thetaste">quality</a>, care and <a href="http://www.beerhouse.co.za/2014/08/28/3-fransen-street-sab-craft-beer-market/">unique product identity</a> rather than the good times to be had while drinking with friends or after a hard day’s work as was the case in the past.</p>
<p>But a small subculture does not make for the sales which can sustain 150 breweries. Rather, the acknowledgement of the diversity of tastes available in beer has expanded the reach of beer as a beverage. Another part of the puzzle must be that craft beer festivals have also become hugely popular. Their marketing value cannot be overlooked. </p>
<p>It’s a lot easier to discover the variety of <a href="http://www.saontap.co.za/#!top-10-craft-brews-sa/c10u7">local craft at a festival</a>, where you are circulating through the stands and tasting in an easygoing environment, than to find what you are looking for at a bottle store. Interacting with the people who brew the beer and who can advise you is also invaluable for the novice craft beer drinker. </p>
<p>When you are surrounded by hundreds of people all drinking something interesting, it seems a lot more normal than skipping the big fridge full of “standard beers” in favour of the rack of craft beers at the liquor store.</p>
<p>The mainstream breweries are still seeing <a href="http://www.sab.co.za/sablimited/content/sab-press-releases?oid=110835&sn=Detail&pid=62">growth in consumption</a> alongside the craft beer revolution, which means that in South Africa at least, the two industries are coexisting rather than replacing one another. Craft beer festivals have seen financial support from the mainstream companies, and development of future brewers has been supported by events like the <a href="http://www.sabstories.co.za/beer-culture/8th-annual-intervarsity-brewing-challenge-is-on/">Brewing Intervarsity</a>, sponsored by South African Breweries.</p>
<h2>Sense of identity</h2>
<p>What you drink is a <a href="http://www.thebrewenthusiast.com/blog/2014/11/5/marketing-brand-identity-and-the-craft-beer-business">signal of your identity</a>, your tribe. No one wants to be mainstream in a time of individuality, and this even more so if you are in a band which criticises the status quo. </p>
<p>South African rock band Fokofpolisiekar (just writing their name is an act of rebellion) have started their <a href="http://www.fpkbeer.co.za/">own line of beers</a>, brewed by <a href="http://www.sirthomasbrew.com/">Sir Thomas Brewery</a> in Stellenbosch. The branding of the beers is tied to the bands’ songs, but also has a certain <a href="http://www.urbandictionary.com/define.php?term=steampunk">steampunk</a> flair. Craft beer has been associated with alternative culture, perhaps more by virtue of what it isn’t than any cohesive idea of what it is. It isn’t mass produced; it isn’t mainstream.</p>
<p>This is the time of the individual, the time of customisation and the time where everyone expects their unique tastes to be catered for. This may be the true answer: we are in the midst of a large-scale cultural shift which happens to favour craft beer.</p>
<p>When everyone tries to stand out and make unique choices, and searches for a drink that can convey their sense of identity as well as satisfying their unique tastes, we can expect the number of styles of beer and the number of branding sentiments to proliferate. </p>
<p>We hope that this trend will continue and that the joys of a distinctive beer which were once restricted to a small group of homebrewers will now be available to everyone.</p><img src="https://counter.theconversation.com/content/47480/count.gif" alt="The Conversation" width="1" height="1" />
<p class="fine-print"><em><span>Mike Heydenrych received funding from SAB to establish the University of Pretoria's microbrewery, and he is a member of the Wort Hog Brewers, a home brewing club. </span></em></p><p class="fine-print"><em><span>Carl Sandrock has benefited from funding from SAB to maintain the University of Pretoria's brewing team. He is a member of the Wort Hog brewers, a home brewing club.</span></em></p>In contrast to a decade ago, there are currently more than 150 craft breweries in South Africa, many shipping their products around the country.Mike Heydenrych, Associate Professor of Chemical Engineering, University of PretoriaCarl Sandrock, Senior Lecturer of Chemical Engineering, University of PretoriaLicensed as Creative Commons – attribution, no derivatives.