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Craft Brews Chipping Away At Big Beer's Dominance

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codhand

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America loves beer.

In the U.S., we drink $200 billion worth of the hops-brewed libation annually. What many Americans might not know is that most domestic beer, 90 percent in fact, is dominated by just two companies: Anheuser-Busch InBev and MillerCoors.

Innovators, however, are challenging that dominance in the form of craft beer breweries. Small "mom and pop"-style breweries — or regional breweries — now account for about 6 percent of domestic beer sales. That may seem like a small number, but it's been growing every year since the early 1990s, while big brewers' share is declining.

There are now more small breweries than there were before Prohibition, when beer was largely a regional business.

http://www.npr.org/2013/03/17/174571197/craft-brews-slowly-chipping-away-at-big-beers-dominance

So far this is the feel good story of the year for me.
 
I pretty much only buy craft beer and foreign now.

How are the other beers from Unibroue? La Fin du Monde is one of my favorites.
 
i only drink craft or imports so this is good i guess.

I pretty much only buy craft beer and foreign now.

How are the other beers from Unibroue? La Fin du Monde is one of my favorites.

don de dieu is pretty good and trois pistoles is very great. la fin du monde is my absolute unibroue fave.
 
The rush for Surly in Minnesota is nuts.

When they do their seasonal beers, folks come from all over the US to get it. There's lines for it going outside the brewery. Minneapolis pubs were having a problem with folks stealing the Surly taps and selling them on eBay for 50-150 bucks each. I had no idea fools could go insane over beer.
 
Good, "big beer" is piss water salted with rice and is an embarrassment to the beverage. Craft Brews have given me such wonderful flavors and experiences through their passion for making a quality product.
 
So basically a lot of microbrews are about to get bought from the big companies?

I don't think so. The only microbreweries that make even a fraction to cut into their profits are still making such a healthy amount not to. Overall, the major beer companies aren't too worried and probably will never be.

Still, it's impressive. One of me main reasons why I love the Sam Adam's Brewery. They did a lot to get other beers some notice over the years.
 
Indeed. Or else big breweries will create their own "craft" lines. That's what happens in New Zealand.


This has already happened. Blue Moon being the major example. Bud has had a lot of failures in that arena though, namely American Ale.
 
craft beer is inexpensive, if you know what to buy.
Lagunitas Hop Stoopid is 8% alcohol and four bucks a 22oz
Narragansett has a bock that is 6% and 8 dollars a 6pk of "tall boys"
just a couple examples



people saying they will be bought by the big boys, are unfamiliar with the ethos of the local brewery, blue moon notwithstanding
 
So basically a lot of microbrews are about to get bought from the big companies?

They can try, but there are so many microbreweries out there now and the total share of the market of each is so small that it's doubtful the macrobrewers will get too involved in that game. More likely they'll keep trying to come up with their own beers that try to cater towards other customers (and keep failing)
 
craft beer is inexpensive, if you know what to buy.

people saying they will be bought by the big boys, are unfamiliar with the ethos of the local brewery, blue moon notwithstanding


The ethos of the local brewery doesn't lead to a Sam Adams or a Sierra Nevada or a New Belgium. These breweries aren't getting huge based on their local market. They get huge because people like their product and their marketing. These things wouldn't necessarily change because one of these companies get bought out. I don't think it has changed for Goose Island.
 
Interesting article. I've been on craft beer for a couple of years now and I'm glad the trend isn't going to go away.

What I don't get is the complaint about "crafty" beers. I don't care if one of the macrobreweries makes a "craft" type beer like Blue Moon or Shocktop. I like both of them, and will try any beer by any brewery if it is good.
 
Costs are high. Most breweries aren't exactly making money hand over fist. Craft beer is expensive as hell to make. The costs are where they need to be, if not slightly low.

How can they expect to continue to take a bigger part of the market in the future if they can't put out a lower cost product?
 
craft beer is inexpensive, if you know what to buy.
Lagunitas Hop Stoopid is 8% alcohol and four bucks a 22oz
Narragansett has a bock that is 6% and 8 dollars a 6pk of "tall boys"
just a couple examples



people saying they will be bought by the big boys, are unfamiliar with the ethos of the local brewery, blue moon notwithstanding

I wouldn't say Gansett is craft beer. It's cheap shit, but I rather enjoy it. On tap most of the places around here, dirt cheap. Having a beer on draft is probably my favorite thing. I'll never understand people going out and buying bottles.
 
How can they expect to continue to take a bigger part of the market in the future if they can't put out a lower cost product?

Consumer taste evolving, realizing what a good beer tastes like. My grandpa has been drinking coordinator light for 60 years because that's all he knows. People growing up now with this craft beer culture exploding aren't going to be drinking as much cheap piss beer. I think the price difference is well worth it.
 
I wouldn't say Gansett is craft beer. It's cheap shit, but I rather enjoy it. On tap most of the places around here, dirt cheap. Having a beer on draft is probably my favorite thing.

The Narragansett Brewing Company is one of those breweries that many of us have fairly fond memories of. These memories (probably) revolve around tall boy cans full of "decent" beer being served at summer BBQs and on the beach. In other words: its the type of beer you watch the game with, not sample at a gallery opening. However when I talked with CT Regional Sales Manager Sean McQuade at Eli Cannon's Tap Room the other week, he made it very clear that Narragansett is aiming to be more than just a casual beer. In fact, Narragansett would like nothing better than to have the casual market cornered, while being able to party with the intense craft beer boys. And, from the sounds of it, this may very well be an attainable aspiration.
http://ctbeertrail.net/profiles/blo...sett-proving-they-re-more-than-just-a-big-can

basically Narragansett is going for the craft beer market, lot of new brews coming from them that are aces.

also this
One question I get every now and then is this: does Sam Adams (a brand of Boston Beer) still count as craft, or has it gotten too big? According to the Brewers Association (BA), it's still craft. The production limit for craft, according to the BA, used to be set at 2 million barrels a year. But when Boston Beer surpassed this limit, the BA raised the limit to 6 million barrels.
http://www.nj.com/entertainment/dining/index.ssf/2013/01/on_tap_8_not-so-craft_beers.html

so SA is craft but Narragansett isn't? I like my personal case-by-case (pun intended) analysis
 
How can they expect to continue to take a bigger part of the market in the future if they can't put out a lower cost product?



Sure, they should lower costs by brewing in volume like the big guys with the cheapest possible materials. Use corn syrup instead of malted barley like Coors does. Really bring down the costs.

Craft beer is what it is because the quality of the product comes first. Craft beer will never be huge because of that. The best craft beer will always be expensive because of that. And if you really want craft brewers to cut costs to make it cheaper, then you don't really understand the idea behind craft beer.
 
Keep on recommending craft beers please, the furthest I've ever wandered are Blue Moon, Shock Top and Asahi Black. The first two are fake craft beers I've found out, but I still like em.
 
I don't think so. The only microbreweries that make even a fraction to cut into their profits are still making such a healthy amount not to. Overall, the major beer companies aren't too worried and probably will never be.

Ha, that's not true that all. MillerCoors, for example, has already been buying a variety of craft breweries because they see their own market share stagnating while craft market share grows. Henry Weinhard is the latest one I can think of.
 
Ha, that's not true that all. MillerCoors, for example, has already been buying a variety of craft breweries because they see their own market share stagnating while craft market share grows. Henry Weinhard is the latest one I can think of.

Henry Weinhard's hasn't been independent in modern times. That is a terrible example.
 
Henry Weinhard's hasn't been independent in modern times. That is a terrible example.

Heh, true. I thought of them though because Miller recently expanded HW distribution after buying them recently. MillerCoors is going after others, too.
 
Keep on recommending craft beers please, the furthest I've ever wandered are Blue Moon, Shock Top and Asahi Black. The first two are fake craft beers I've found out, but I still like em.

Allagash White and St. Bernardus Wit both fit into the category of the first beer and are much better; Asahi Black is a Munich Dunkel, a dark German lager style brewed in Japan. Many German breweries would fit the bill, i.e. Ayinger Altbairisch Dunkel.

I have rarely, if ever, come across a great lager brewery in the US, but maybe that's just a regional taste issue.
 
I expect to see a few big name acquisitions in the next few years, but that won't change anything. There will always be new breweries to replace those that get too big. The movement is here to stay.

And a lot of the top microbreweries will never sell.
 
I think Brewers like Sam Adams aren't really craft breweries anymore even though they might like to be called that...there's a tier between craft breweries and the Bud's and Miller's of the world, let's call them "Regional Breweries." For example, in New England you have Sam Adams, Harpoon, and Magic Hat, here in New York you have Brooklyn (they make some awesome beer btw), Saranac, Genessee, in Pennsylvania you have Yuengling. All of these brew some great beer and are a good alternative to the big national brewers.
 
Consumer taste evolving, realizing what a good beer tastes like. My grandpa has been drinking coordinator light for 60 years because that's all he knows. People growing up now with this craft beer culture exploding aren't going to be drinking as much cheap piss beer. I think the price difference is well worth it.

For some, but I don't think you're in the majority. Don't get me wrong some of my favorite craft brews are on the expensive side like Left Hand Milk Stout, but I'm not going to consistenly purchase a 10.00 six pack of them because to me it's too expensive. I'm lucky enough to live in St. Louis and there are tons of craft/microbreweries in the area which helps. Prices of craft brews from St. Louis are more reasonably priced imo.
 
Awesome news. Craft brews are amazing and there is so much variety. Every time I go out these days I find myself trying something new.
 
http://ctbeertrail.net/profiles/blo...sett-proving-they-re-more-than-just-a-big-can

basically Narragansett is going for the craft beer market, lot of new brews coming from them that are aces.

also this

http://www.nj.com/entertainment/dining/index.ssf/2013/01/on_tap_8_not-so-craft_beers.html

so SA is craft but Narragansett isn't? I like my personal case-by-case (pun intended) analysis

Sam Adams is the largest success story. They have been around for years, toughed it out to the point where they are the most recognizable and best distributed in the states. They also have supported and helped other struggling microbreweries.

I mean, Narragansett is technically craft, but they are doing the same tactics that the big beer companies have and just added new brews catering in their lineup. My favorite thing about them doing this is the porter and bock variants are brewed in Rhode Island once again. They have been brewing the traditional lager in New York for years now.
 
Allagash White and St. Bernardus Wit both fit into the category of the first beer and are much better; Asahi Black is a Munich Dunkel, a dark German lager style brewed in Japan. Many German breweries would fit the bill, i.e. Ayinger Altbairisch Dunkel.

I have rarely, if ever, come across a great lager brewery in the US, but maybe that's just a regional taste issue.


There are some pretty great lager breweries, not a lot distribute though.

Prost in Denver makes a fantastic pilsner.

Chuckanut in Washington makes fantastic lagers.

Heater Allen in Oregon makes a really nice pilsner.

Proper craft lagers are even more expensive to make than ales. They take too much time, too much tank space, for many breweries to take the time to do it right.
 
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