Your 2015-16 US Craft Brewery Dance Card

These are troubled times. One does not know what and who to hate or cheer on. Craft is either dying or transforming into something new and glorious. So you need some help. Click on the image for a bigger version. This is your cheat sheet. A notepad to carry with you at all times to make sure you know what you are supposed to think. You need to know what you need to reject.

* – no one really believes they are actually craft.
** – Actually Canadian, Belgian or something else but not ultimately US owned.
$ – sold out to big evil hateful brewing or money interests.
$$ – absolutely took big evil hateful brewing interests to the cleaner but still sold out.
+ – branch plant owner therefore just a small version of big multi-national brewing.
++ – just so big that it makes no sense to think of them as craft in any real way.
? – only allowed in craft so others could be retained in craft.
?$?$ – looking and hoping.

That’s just a start on my list. I probably missed a bunch. Let me know. If you click here you can get your own dance card to review, consider and annotate. Just make sure you use the dry-wipe ink feature on your browser so you can update this on a regular basis.

A Few More Thoughts On Craft Brewery Buyouts

I quickly wrote this over at the beer blog’s Facebook page* and thought it was clever enough to repeat:

With respect, the main point is being missed. The disassembling of the US craft beer market is itself the bursting of the bubble. The “big macro v. tiny craft” paradigm failed a long time as the BA’s failed “crafty” campaign illustrated. Continuing to suggest that the path of craft is being validated ignores the greater underlying realities. Big craft bought into scale a long time ago. Craft as brand regardless of what’s in the bottle is market reality. The brewery isn’t being bought. A battle with craft is not being waged. Macro is buying brands and markets to use for other purposes. The rump BA will appear to be quaint soon. Then pointless.

Some interesting comments ensued. I suppose it is related to the posts about how craft will kill itself from a few years back but this is really another thing. Craft being killed off by macro simply eating it after paying billions for the opportunity. We are likely not at mid-meal yet but that’s what’s going on. What we haven’t heard about yet, when you think of it, is how those brewers wanting to be bought but not getting offers are doing. You know, just because they are not worth buying doesn’t make them any less the traitors to the cause… if you are into that whole “cause” thing. What I expect we do know, however, is the guys at Goose Island must be really pissed off unless they took a deferred part of their $39 million chump change payment in the form of percentage share of future brand growth as part of their deal. That stuff is brewed everywhere and sold everywhere now and someone is making buckets of cash.

*…which reminds me of a pet cat having a pet hampster.

Your Saturday Morning News Not From Boak And Bailey

Six thirty Ay Hem. That’s what you get when you go to bed early on a Friday. After having a nap around supper time. That’s how I think of myself on this sort of Saturday. Okocimiski.

Three elections in a row this week plus, you know, the life of a desk jockey did me in. The first election last Monday in my former tiny jurisdiction of PEI saw my old law school prof get in as Premier. The next on Tuesday in the western Canadian home of the conservative puritans saw a landslide by the socialist hoard. And in the Old Country Thursday the nationalist lefties beat out the unionist pinkos to send the aysmetrical quasi-federation into a dither. The combined effect of many split votes in the last one caused the astounding “great victory of no more votes” – quite an accomplishment. What’s this got to do with beer? Not that much. But I work in governance so am aware that some things do actually matter. What else has been going on?

=> Jim Koch is cashing in some of his shares. Note that his balance of equity seems to be worth around 63.4 million. Sure, it’s a small brewery. Sure it is.

=> In one post, Ron has explained the point of Asheville NC far more clearly than the output of 1,000 subsidized junkets. That he got there via a milk run back country bus was a deft bit of contextualization even if he had to sit on his luggage… no, his actual luggage.

=> It’s been three weeks since beer retailing in Ontario was reformed and absolutely not one thing has actually changed. Classic boondoggling. And no one is complaining. Classic Ontario. Perhaps by 2028 we’ll be allowed to hold our beer bottles with our left hands in public. After all, what really matters is the posing. Like calling something “a game changer”, Toronto has a wee problem calling itself “world class” like the needy kid back in kindergarten who told you his uncle went to space. The phenomenon is described by the term world classy.

=> Go read BB. And then do it again. Where don’t their tentacles reach? It’s like they are becoming a vast industrial complex. [Thankfully, we can trust they did not write “here’s how to unearth the ‘ultimate’ session beer” in that header.] Note: their post on May Day celebrations at Padstow in North Cornwall is one of their best ever.

=> This is funny. In far western British Columbia:

The final report of the B.C. Liquor Policy Review recommends the government consider establishing a quality assurance program for craft beer and artisan-distilled spirits, similar to the VQA, or Vintners Quality Alliance, program — which currently guarantees wines are made in B.C., with 100 per cent B.C. ingredients.

Trouble is no one checked that “local” and “craft” in beer bear scant relationship to wine so… they are left with the same sort of fibs and platitudes we always see – which led to the refreshingly honest admission: “that’s kind of thrown a wrench into the ability to focus on what the next level would be.

=> Just realized that if I started my own periodical I could name it “Al About Beer.” I would have to work on my ra-ra superlatives so maybe not.

=> Might I suggest unless one is extreeeeemely certain that a surprise beer and brunch pairing for Mother’s Day is only one thing: a quick route to the dog house. Don’t be stupid. Just because the love of your life puts up with your dependency / “hobby” it does not mean she likes it. Not at all.

Saturday. And maybe a stinking hot one as well. It was +25C¹ after deep into dusk last night. That means gardening. Letting more lettuce seed buried. Or drinks in the yard. Might get a bit Okocimiski. Jest Sobota Okocimiska? Może. Or I could just go get a growler. You have to remember that they sell lettuce at the grocery store in July, too, you know. Enjoy your Saturday. 7:45 am. People are starting to get up. Better make coffee.

¹ Disclosure: in Canada in spring there are a few days when you have to still make clear you are talking about +25C and not -25C.

The Eight Years Reign of “Craft” Beer Ends

As with many of the words and ideas hovering around good beer for the last decade, we all knew for a while that “craft” beer has been a bit of a loser. Yesterday on social media, two of the biggest voices in good beer publishing affirmed its relegation. Here is an article John Holl of All About Beer on the status of the word:

As a media company, we rely on using words properly. One year ago this magazine took the first step in limiting the word craft in our coverage. Our feature articles no longer differentiate between craft brewers and not because we don’t have a solid definition. As we’ve always done, we report the news of breweries around the world. All breweries. Of course we know this will not be universally recognized, so you can expect to see the word pop up from time to time in quotes, or when certain groups, like the BA, talk about membership, or in our business coverage, where craft is considered a specific sales segment. It’s our duty to cover that as represented, and we will.

On Facebook, Todd Alstrom of BeerAdvocated commented in this way in Facebook:

I remember this conversation. 😉 BeerAdvocate magazine has also stopped gratuitously using the term. And Jason and I have been saying this for ages: Just because it’s “craft” (or “local”) doesn’t mean it’s good, nor should we blindly support it; especially given the level of mediocrity (at best) coming from far too many brewers these days.

It’s not a new idea. “Craft” as a label on good beer had been dubious for at least half a decade given its twisting for interested purposes including ensuring certain very rich people get very large tax breaks rightfully granted to other small business folk. And think about its actual lineage. It is not really appropriate to consider when the word was first used as that is the “tree falling in the forest” moment. It is only when a word gains both broad acceptance and ascendancy over its competition that it becomes definitive. A far more useful measure is the sort of thing we see when we compare the use of “craft beer” with “microbrewery” in the pages of The New York Times. “Craft beer” takes off only around 2007-08. Less than a decade ago.

If we truly care about meaning, we may want to ask why this happened. It is interesting to note that the popular acceptance of “craft” closely followed the merger of The Association of Brewers and the Brewers’ Association of America to form the Brewers Association. One of the key PR goals of the Brewer’s Association has been control of the discourse. They are obsessed with definitions and now hire many professionals including an economist to prop up their PR bulwarks. There was good reason to try to get more professional about these this given the countervailing “whack job approach” to making a case that was prevalent. The trouble is there is a whole pesky bigger separate discussion going on with consumers. Despite the efforts of the breweries, the consumer had an open mind and an independent eye.

And the PR spin was more than a bit of a botch. In 2012, the BA rolled out the failed “craft v crafty” campaign which fairly immediately fell flat on its face. It invited consumers to consider closely two things which had not yet been at the forefront of the discourse: (i) holy frig, those big “crafty” brewers can make pretty good beer and (ii) holy frig, those small “craft” brewers aren’t small. Notice what Holl and Alstrom mention up there. They dropped using “craft” a year pervasively or more ago. So, the arc of popular acceptance can, at best, be dated from 2007 to 2015. Eight short years.

This is good. Words come and go. And one reason they come and go is that the general pool of people in any given discourse know how to smell a rat. People recognize that the control of language is one of the first goals of anyone trying to not only promote but affix their interests a few rungs higher up the ladder than they deserve to stand. It is also good because we now live in the world of big craft billionaires and international big craft branch plants. “Craft” will slowly recede from the vocabulary as it should. Time for a new word. Or, better, words. What will they be? Stay tuned. The public will let you know.

Addendum: Have a look at Oliver’s take, an etymological view. And, if one is Swiftian, not a modest proposal at all as there is no hint of acerbic parody.

Beer Math: “Micro>Macro>Craft, That Works”

I am watching and commenting on an interesting Facebook thread started by Maureen Ogle this weekend that was triggered by the article “A Not-So Nefarious History of Craft and Crafty Beer” by Daniel Hartis. It also triggered some thoughts from me which I am pasting here as both a place holder and to see if I can build on them. See if I can make the selected bits of the conversation make sense:

=> Alan: “That is an interesting bit of reverse engineering. “Craft” does not gain general traction until the mid to late 2000s except in early adopting regions. We had early 90s efforts in Canada by Molson and Labatt to pretend to be micros – not “craft” as the word and the brand/ethic did not firmly exist yet. It would be better if the author had tied how “craft” itself was marketeering itself injected into and upon micro brewing and created more of a juxtaposition of the malleability of all marketing of all beer. Part of the continuum that in the 1880s saw lagers advertised as temperance drinks.

=> Hartis: “Hey Alan, I noted that craft was not often used, and that many used specialty instead. However, note that Miller’s specialty line — which they created in 1994 — was called “American Specialty and Craft Beer Co.,” so I’m sure the term was out there at the time. And just as “craft” wasn’t used early on, neither was “crafty” — they usually referred to such brewers as “stealth.”

=> Alan: “I agree but I am coming to believe that micro and craft are sufficiently distinct that the relationship of macro to each is not a continuum – and that micro and craft have significant tensions between them. So if what we call craft now does not conceptually exist 20 years ago we can’t go back and draw the same conclusion from 2014 experience. Micro had not so much of the artisanal or even punk ethic then so much as the home brew, garage band think. “Craft” would connote a snootier approach or more precious word. It’s much clearer if you go back to the 1970s writers life David Line. The last thing the self sufficient skilled small scale brewer would defer to is the argument that beer is “crafted” as in difficult let alone a rare art.

=> David Edgar: “The word “micro” no longer applied once we had more than a few brewers eclipse the 15K Bbl mark. Thus we gravitated towards “craft.” The first year when we added up all the volume for Micros, Brewpubs, Contract Brewing Companies and Regional — we called it the Craft Brewing Index. After the first ‘craft’ definition was created, we changed the name to the “Domestic Specialty” Brewing Index so that it could still include the volume of ‘craft’ beer from Redhook, Shipyard & Widmer etc. … The Sam Adams radio commercials that were all over FM radio in those days also repeated the phrase “we craft brew…”

=> Alan: “This is interesting as it validates a bit of what I have been seeking but without so much of the “hand of doom” insinuation that Lisa was alluding to. If craft organically gets introduced as micro starts receiving bodies and ideas from macro, the transition makes sense.

=> Mitch Steele: “I know a number people besides myself who have done this transition-so if it does get written, let me know. I don’t think I ever felt tainted, but my story is a bit different than some, I started out as a craft brewer, then went micro, and then came back. I’ve been told that people at Stone were nervous when Steve hired me, but once I came on board and met everyone, that went away.

=> Alan: “If I might, you may have gone from micro to macro to craft. As craft is not used until the mid90s and only gains popular traction a decade later, the shift in language describe a shift and division in the trade that still exists today: http://beerblog.genx40.com/archive/2014/july/somewordsfor

=> Mitch Steele: “Micro>Macro>Craft, that works. I told Daniel Hartis yesterday via Twitter that I never wanted people at AB to use the word “craft” to describe our efforts here-I felt it wasn’t an accurate representation, and would open us up to the critics. So we used “Specialty” instead. Chris Shepherd thank you. One of these days, I hope to brew that recipe again. It is in my IPA book too!”

=> David Edgar: “The whole microbrewing movement was about reintroducing flavor in beer and creating ales and lagers that were not available from domestic brewers — or from anywhere. “All-malt” was the flag that Fritz and Anchor were the first ones to wave. Simultaneously micro or craft became about 1) purity and 2) authenticity. (Some perhaps unfairly denied Anchor its rightful place as the father of this whole movement because Anchor did not start out as a microbrewery.)

=> Alan: “We may be speaking at different ends of the question but I understand the microbrewing movement was also about recreating flavours coming in from the UK through imports and pioneers like Peter Austin who trained people who trained people like Pugsley in Maine and Noonan in Vt. “Craft” comes in twenty years after Austin as well as UK home brewing guides from folk like David Line inspire early US micros. The “crafty” branding campaign is a bit of an unrelated bungle that has backfired and now reminds many that great beer can come from breweries at many points of the scale continuum. It also reminds that “craft” is something a bit distinct from the ethic of micro. “Micro” is a result of everyone being able to brew as Line taught. “Craft” includes a reversal of that – beer becomes claimed to be difficult and rare and even an art as well as certainly available only at a premium price. In The Unbearable Nonsense of Craft Beer, we used the phrase disco for the worst excesses of craft. But I think that it’s in a way like pop music in 1976 – somewhere a garage band revival is in the works.

I have to think about all this but I like the information that I had not placed into the “micro v. macro v. craft” construct. Just for those keeping score, David Edgar is the owner of Mountain West Brewery Supply in Colorado and was Executive director, Institute for Brewing Studies in Colorado from 1987 to 2001 so speaks from that context. Mitch Steele is brewmaster at Stone Brewing formerly with Anheuser-Busch and author of IPA, Brewing Techniques, Etc.

A Summer Sunday Beer News Roundup

Why Does The NYT Perpetuate A US Craft Fiction?

Stan linked to a NYT opinion piece by Steve Hindy who is correctly identified as “a founder and the president of Brooklyn Brewery and a member of the Brewers Association board of directors.” I think it struck me a little differently from Stan. Consider this:

…state laws continue to empower distributors to select brands and manage them however they want — selling those they choose to sell, while letting other brands sit in their warehouses. The only recourse is to sue, and many small breweries lack even a fraction of the resources needed to take on a big distributor in court. As a result, they’re stuck with the bad distributor, which severely hampers their ability to perform and grow as a business. Buy a small brewer a beer, and pretty soon he or she will be regaling you with war stories about fights with distributors…

See what’s going on? Small brewers. No discussion about the different effect regulations have on actual small brewers compared to big national craft brewers like Brooklyn and the other oft cited Dogfish Head. As the owner of Notch Brewing, Chris Loring, recently shared with Max, the interests of big national craft are very much at odds with the interests of actual small and local breweries. The opinion piece, as would be expected from its source, references nothing of that. Gripes about regulations from state to state are only a burden to those business folk whose aims include 18 wheel transportation and national advertising campaigns.

So, while the title of the bit is “Free Craft Beer!” it really could better be “Unleash The Opportunity For Brewers With Scale!” We know what would happen were this sort of shift to occur. We’ve seen it before. It happened in North America in the 1860s to 1890s. It wasn’t that laws were change so much as the railway established itself. All over Ontario many many small brewers making good beer were crushed when previously local brewers like Labatt and Carling out of the southwestern town of London got their casks out of their towns and into the province, the nation and then the world. Yes, that Labatt and that Carling. Prohibition did not close the breweries. Advantages of scale did. The wiping away of borders and other obstacles did. As you can read in the article “The Canadian Brewing Industry’s Reponse to Prohibition 1874-1916” by Matthew J Bellemy in Brewing History, there were 61 breweries in Ontario at the turn of the twentieth century. There were 49 in 1915 and 23 two years later. The strictest form of temperance law imposed locally came into force in 1916. Historically, it is clear that beer and brewing likes a few things like peace and a good growing season. It also likes oligopoly. Beer responds well to aggregation. We know that because all big beer was once small.

Actual small, local and well made beer is antagonistic to oligopolistic economic forces. Actual small batch beer made by actual small brewers is easily crushed. By perpetuating the idea that there is that one homogenous thing called “craft beer” and “small brewers” we ignore that big commercial brewing enterprises are different. We cover over the fact that intra-national importing brewers moving beer coast to coast in the US like Brooklyn, Dogfish Head, Stone or Sierra Nevada pose as much or a greater danger to actual small brewers than Bud or – what ever is like Bud but not Bud – does. It is not wicked that this is the case… but it is a natural economic force. If you want to live in a world with brewers making good beer in every second town you may want to take what national and now exporting international craft argues with a healthy dose of skepticism. A healthy dose of skepticism actually pairs extremely well with actual small scale, local and good brewing.

Perhaps The Best Way Craft Beer Dies Off

With all the talk of bubbles and schisms, it is good to be reminded that the path to success for any good brewer is normalcy. If a brewery is accepted and its beers stand along taps and bottles of well accepted beers and bought along with them does anyone care what those other beers are?

That is what I saw at the Loose Moose in Toronto last night. Local craft brewers lined up again macros and imports. Local beer drinkers having whatever they liked without a sneer either way. People were paying attention to the game, the food and their friends without any concern for appearances. Loud music but not too loud for the smallest kid. Uncle Jordan picked a good spot. Not a snifter was in sight, thank the Lord. I had an Eephus by Left Field as well as Nicklebrook’s Headstock with my burger. Two of my favourite Ontario craft brews. I could have had a Coor Light, too, which is or is close to Ontario’s best selling beer. Peaceful coexistence. The food was good sport pub fare and the prices reasonable for the city.

So, if good beer is absorbed without being assimilated, if it takes its place without insisting others leave… isn’t that victory?

Yet Another Way Craft Will Kill Itself?

It is probably fair to say that my prediction of the demise of craft due to the stupid craft v. crafty mess was not entirely correct – unless we consider the health of its moral core. Could it be the smell back in late 2012 was the sign of things to come? Jeff may be getting his suspicions:

Ezra’s comments about the new Stone launch follow an interesting article Stan linked to yesterday, by an Atlantic writer wondering if craft beer has gone too far. They have a point. Stone’s corporate identity has always threatened to bleed over the thin line separating satire and self-importance, so maybe it’s not the best example of craft beer’s direction. The Atlantic piece drives the point home more pointedly: “So is this the future of U.S. beer consumption – a country that stumbles over itself to buy beer made with wild-carrot seed, bee balm, chanterelle mushrooms , and aged in whiskey barrels?” It go me thinking. If the craft beer market has become a contest over the most outrageous, has craft beer finally grown up and become its nemesis, mass market beer?

Now, this may all sound like the sky is falling but these things do happen. I was writing about Ontario’s brew on premises fad of the late 80s and early 90s and read how they held 3% of the retail market for all beer by 1996. Then they went away. Mostly. People didn’t want to pay the taxes once applied but, also, it smacked of recession in a decade of increasing prosperity when imports and micros became more and more the thing. Maybe the point is not that good beer will go away. After all, its not like beer is going out of style as the saying goes. But craft can over extend itself, can make itself a joke. People will move on to the next thing, the next good beer.

Which is exciting. What will it be?

Has Discontent Struck Good Beer In A Time of Plenty?

A little bird, or rather an email correspondent, who was present advised me that at the recent Craft Brewer Conference there was a closed session at which at least one well placed big-mid-sized Midwest brewer “sure made for good entertainment at the voting members session of the CBC- you know, the one the toss the media out for”. Apparently, unlike what is seen on the public sessions, issues like the asymmetrical effect of tax breaks and grants are creating divisions amongst those who would like you to believe that they sing all from the same hymnal… and, then, would like to sell you the hymnal so you can keep in tune, too. Interesting, then, to read about one implication arising from this sort of thing as illustrated by one particular expanding good beer market, Ashville NC, as reported today by Bill Night at The New School:

If the $9 Mil for New Belgium that Magee mentioned sounds like a lot to you, maybe you’ll be interested to find that New Belgium actually snarfed up $13 million in total from “the public trough”, as explained in this post on the blog Ashvegas. As far as I can tell, Sierra Nevada wasn’t quite as gluttonous, and only needed a little under $5 million to set up beer camp in North Carolina:

– State of North Carolina: $1M grant to New Belgium
– Buncombe County: $8.5M tax incentives to New Belgium
– City of Asheville: $3.5M tax incentives and infrastructure to New Belgium
– State of North Carolina: $1M grant to Sierra Nevada
– Henderson County: $3.75M tax incentives and infrastructure to Sierra Nevada

You know who should be really pissed about all that money? The small brewers who built Asheville up into Beer City USA.

Redistribution of wealth is tricky stuff and it does not help that those receiving are national craft millionaires even though sometimes it seems they would like us to think that they are hunting for sofa change to try to make payroll. But it does not stop there today as Harry Schuhmacher in the Beer Business Daily touches on more of the questions left unanswered after the recent conference. He discusses questions of tax policy as I discussed here the other day as well as badly made and overpriced craft – and even how succession planning leading to big money buyouts are all discussed. All important big issues that can leave a bad taste… sometimes by actually leaving a bad taste.

But, most interesting to me is the “S” word – smugness. Harry puts it succinctly: “I’ve met a few new craft brewers over the last year, and I get the sense lately that many think they invented beer.” A great direct line. I can’t, however, speak to the truth of it as, being trained in the law, I assume this is a phenomena that is woven throughout all business sectors so I don’t know whether this is new to beer or that the guard has been left down a bit recently. Yet the other sources mentioned above might be indicating that might well be the case. Where does all of this lead? Good beer did well in the recession, expanding market share as the economy took a hit. But that does not mean the industry is immune to all risk.

For me, big business is big business and will act as such. Lobbying and entitlement will benefit the largest most. But the time needs to come when US craft will stop trying to pretend all brewers are small start ups even if only to argue for financing opportunities which can benefit businesses of different scales. Beyond that, the risk of fatigue needs to be addressed – and not fatigue of flagship beers as Harry suggests though that is happening too. Craft beer is starting to act like pre-teen soccer league where everything and everyone is special. Every brewer gets the medal. Every one gets the treat at the end of the game. In the case of craft beer, the treat is unending increased prices and increased sales forever and ever, amen. Nothing works that way.

Change will come and will likely be unexpected. Change may also be brought upon oneself. How would a brewer best situate itself to withstand a shift away from these present times of plenty? Admitting opening how things actually are might be a start.