Live data from Hacker News

Craft Beer Is the Strangest, Happiest Economic Story in America

theatlantic.com

71–80 of 168 posts

Re: Craft Beer Is the Strangest, Happiest Economic Story in America

#71
post #53

Summary: benevolent regulation caused the craft beer boom. I call bullshit. Look at this graph [1] and tell me again how great the three-tier system was for market diversity. America went from 700 post-Prohibition breweries to less than 100 in 1978. That was the year homebrewing was legalized, and it's a pretty steady climb back up from there. Brewpubs -- which circumvent the three-tier system and its all-too-easily-…

Agree, and in particular this stood out to me:

> If the U.S. had long ago allowed a couple of corporations to take over both the distribution and retailing of wine before the Napa Valley renaissance, Lynn told The Atlantic in an interview, Americans would be exclusively sipping three varieties of Gallo table wine. “The reason that didn't happen 50 years ago is because you had this system that was designed to promote deconcentration, to incentivize [retailers] to go out and find the new, the different, the alternatives,” he said. “It was effective in achieving that aim.”

This seems completely crazy to me. We’ve also seen an explosion in coffee variety availability, without any kind of convoluted legally-mandated distribution system. American tastes in drinks and food are splintering and opening new market niches; as long as it’s legal to fill those niches, someone will.

Re: Craft Beer Is the Strangest, Happiest Economic Story in America

#72

It’s very hard for me to reconcile. I love what craft brewing has done for the industry. But it has gone to a ridiculous and antithetical place. The culture has more in common with wine than beer at this point. It is no longer an “Everyman” drink. Waiting in line for releases. $10 and $15 pours. It’s a turnoff.

Why is this a bad thing? I have so many more options than the cheap beer I started drinking. The Everyman beer still exists and many people still drink it.

There are plenty of non $10 or $15 dollar pours to keep me happy. You don’t have to wait for releases. I only participate in lottery systems for limited liquor releases, screw the lines.

Re: Craft Beer Is the Strangest, Happiest Economic Story in America

#73
I love this, but I'm curious as to how much it can grow. The neighboring town to me has 5 craft breweries on its main street. All of them are within a 1 mile of each other. It's even crazier since there are also 3 winery storefronts/bars and a craft distillery in that same radius.

The other thing I've found is that it has inspired people, including myself, to try their own hand at brewing. I just bottled my first batch and while I have no delusions that I'll start my own brewery, it's a fun activity to try one's hand at.

Re: Craft Beer Is the Strangest, Happiest Economic Story in America

#74
post #5

I wonder if marijuana will also be able to avoid being crushed and consolidated by monopolies. I don't think the cigarette industry was able to avoid it but I am not well versed on tobacco industry regulations. My gut tells me that since at the end of the day marijuana is an agricultural commodity large players will come to dominate the market. But on the other hand there is a decent variety in strain types and flavo…

The idea that "big marijuana" will take over defies every trend we've seen over the last 20 years. It's nonsensical on it's face.

It's a desperate argument by people who don't like (or understand) marijuana and are out of other arguments.

Re: Craft Beer Is the Strangest, Happiest Economic Story in America

#75
post #58
post #53

Summary: benevolent regulation caused the craft beer boom. I call bullshit. Look at this graph [1] and tell me again how great the three-tier system was for market diversity. America went from 700 post-Prohibition breweries to less than 100 in 1978. That was the year homebrewing was legalized, and it's a pretty steady climb back up from there. Brewpubs -- which circumvent the three-tier system and its all-too-easily-…

It's not just that there was a three-tier system, but I would argue that in this particular case, it was the legalization of homebrewing that was the gateway into the innovation. Early 80's and 90's homebrewers were essentially hackers [1], doing things at very small scales, and branching far out into experimental recipes and techniques. I'm sure there was innovation in distribution and retail over the last 40 years,…

There still is a 3 tier system...

And the rules didn't just change... people that wanted to make changes had to lobby for years to make it happen... and then it took the right years to make it happen.

I've been a part of this activism in New York State for wine, cideries, and to some extent homebrewing my entire life and belong to a number of organizations to help make it happen.

There's also never a coincidence on timing and the economy. Governments love an excise tax and "sin" products are heavily taxed and a lot stays at the state level to where when the economy is in the dumps... they are much more willing to listen to lobbyists on ways to boost income for the state.

It works every time. In the wake of the "Great Recession," we were able to pass the most amount of pro-winery laws in a generation in New York State, unfortunately, we still came up short for our biggest initiative: WIGS aka Wine in Grocery Stores do to illegal campaign financing from overseas and domestic liquor groups. Albany is still a very dirty space. But prior to the recession, it would cost you $20K to get a license to start a distillery... we got that down to about $600. Wineries can now have 5 outlets or mini-wineries to sell their wine. The list goes on and on and it's had a real impact on jobs in Upstate New York.

You'll notice the big rule change for homebrewing happened in 1978... you had the oil crisis... Carter... inflation... and a Congress that was willing to literally let people start making beer in a super unregulated fashion to eventually boost income for the government... and of course create jobs and all that jazz along the way.

When the economy tanks again, I expect there will be marijuana legalization at the federal level.

Re: Craft Beer Is the Strangest, Happiest Economic Story in America

#76
post #35

Love craft beer and I am glad my 125K city has 5 of them, but /r/starterpacks was dead on with this one: https://i.redd.it/fio3hqlmuofy.jpg I will be confused if I ever walk into a microbrewery that doesn't look like that!

they put a lot of thought into those names

Re: Craft Beer Is the Strangest, Happiest Economic Story in America

#77
post #65
post #58

Earlier quoted context omitted.

It's not just that there was a three-tier system, but I would argue that in this particular case, it was the legalization of homebrewing that was the gateway into the innovation. Early 80's and 90's homebrewers were essentially hackers [1], doing things at very small scales, and branching far out into experimental recipes and techniques. I'm sure there was innovation in distribution and retail over the last 40 years,…

> it was the legalization of homebrewing that was the gateway into the innovation. I'm with you on this part. It's hard to imagine the boom happening while tinkering was outright illegal! Also, surely the 58 year gap (1920-1978) caused some generational loss of knowledge. The homebrewers of the 80s and 90s must have started from scratch in many ways. > without the three-tier system the little amount of innovation in…

reading this makes me realize that the business school mantra of 'create barriers to entry' is ultimately limiting for both the industry and its dominant players

Re: Craft Beer Is the Strangest, Happiest Economic Story in America

#78

It’s very hard for me to reconcile. I love what craft brewing has done for the industry. But it has gone to a ridiculous and antithetical place. The culture has more in common with wine than beer at this point. It is no longer an “Everyman” drink. Waiting in line for releases. $10 and $15 pours. It’s a turnoff.

Thankfully, in Portland, OR there are still no lines for beer and most beer is $5/pint.

Re: Craft Beer Is the Strangest, Happiest Economic Story in America

#79
What I dont understand is that in Europe there are dozens of delicious lagers, in the US I can't find any local copies. Mexican or Central American beers come closest. Surely with literally hundreds of microbrewery options there should be something close. Any recommendations?

Re: Craft Beer Is the Strangest, Happiest Economic Story in America

#80

It’s very hard for me to reconcile. I love what craft brewing has done for the industry. But it has gone to a ridiculous and antithetical place. The culture has more in common with wine than beer at this point. It is no longer an “Everyman” drink. Waiting in line for releases. $10 and $15 pours. It’s a turnoff.

People willing to pay high prices are probably what makes it possible in the first place. I feel like the same thing happened with burgers where I live; gourmet burgers became a popular thing, and suddenly there are a lot of new burger places.
Post reply on HN