I was reading this article on NPR and I wasn’t quite sure how to feel about it. Normally when I read a David-and-Goliath-type story I feel polarized and would tend to favor the side of the little guy. After all, in business, the big guys have less to lose… but with beer it seems as though the big guys are having business run away faster than they can keep up with!
Craft beer has drastically changed the landscape in the U.S. in the past 5 years and the momentum doesn’t seem to be slowing down. In fact, quite the opposite! There have been neighborhoods all over the county of San Diego that have seen the impact of this movement. Whether it’s a new tasting room that opened up around the corner from your favorite childhood spot or a brand new building and shopping center that was erected in an area that was once abandoned, cities are cleaning their act up…and raising their rent!
BIG BEER took notice! The loss in their market share was pretty threatening and, after a few failed attempts at crafting their own full-flavored beer such as Budweiser’s American Ale, decided to purchase a few of these companies to stay in the game. For the homebrewer, this is like hitting the liquid jackpot! How great would it be to have started a company in your garage, build the street cred, and get noticed on such a competitive platform that someone offers you millions of dollars for your recipe and your brand?!
But what does this all really mean? Are they sacrificing flavor just to have the brand name or are they, sort of, just funding the original project and expanding? If the relationship was symbiotic, I would definitely favor the side of job creation. It would benefit both parties to work together and help clean up the community while spreading deliciousness all around the city… buuuut why is a 400 sq. ft studio apartment all of a sudden not affordable? And will it make it harder for the smaller brew houses to try and get their product on the shelf or in a restaurant? This is where I am torn.
“You’ll find Goose Island on tap practically everywhere across the country, and you’ll say, ‘I didn’t know they were that popular,’ and they aren’t…The distributors are just pushing these brands out there.”
Bob Pease, CEO and President of the Brewers Association
SO… here I am at a local grocery store and MY WORD there’s a huge beer selection! What to try out next?!
Skimming through the labels and reading the alcohol-by-volume (ABV%) to get more bang for my buck, how would I know if my selection is ACTUALLY independently owned craft beer? And do I really care that much? Grapefruit Sculpin still sounds like good times on a hot summer day!… but will it taste the same forever? Essentially, I really hope it doesn’t come to a point where I’ll have to pay almost twenty bucks for a six-pack of Budweiser.
I would LOVE to hear your thoughts! Please subscribe below and leave a comment!
Here is a link to the full article below and look for the ‘independent craft’ label to support your local artisan breweries coming soon.
http://www.npr.org/sections/thesalt/2017/07/28/539760477/craft-beer-brought-to-you-by-big-beer
There’s some big problems with the pay for play model that almost all big beer companies use. They’ll pay a distributor to favor their beer brand and restaurants to carry their beer on the taps, thus pushing out all of the independent brew companies. Essentially the goal is to have only their beers on tap and to stifle the competition who don’t have the money to pay distributors and tap lines at restaurants. What will happen to all of our beloved small independent brew companies if they can no longer compete? I for one enjoy the huge independent craft brew scene in San Diego and it would be a shame to lose this vital new economic opportunity to a couple of big brew companies that can afford to compete.
Absolutely, Arthur! Though they may not need to be shelved at the supermarket, it does make it harder for the average consumer to become aware of the smaller brewing companies. But from this, the local micro brews have become very crafty at spreading the word through cross-promotions with their neighboring companies, which has made some local communities more vibrant. Seems a lot of San Diego businesses feel the same way you do and are choosing to support the brewery down the street.
Nice write up. I would like to see you research and do a write up on the hops shortage in our country and how this is affecting our beer supply today and what’s up for the future?
Great point Jeff! I may have to cover this on another blog post or in an upcoming podcast episode. Great idea! CHEERS!