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Craft Beer Is the Strangest, Happiest Economic Story in America

theatlantic.com

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

#151
post #55

Earlier quoted context omitted.

I think edibles will be mostly taken over by concentrates. Instead of (in WA for ex.) paying $40 for 10 10mg edibles, I’ll pay $20 for enough concentrate to make 80 edibles.

Do you have any good guide? I’d be interested but don’t where to start. I might try if it’s easy enough to make something that doesn’t taste like I’m eating plants.

Check out the show Bong Appetite on Viceland. It will make you want to put cannabis in everything.

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

#152
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-…

These graphs are quite convincing that the key events happened around 1978 and not decades prior to that. Amazing how a little data can instantly refute pages of exposition at a glance. The author really went out of their way to talk about Anti-Trust concerns and had to get in a dig at Reagan for loosening them...yet the graph of breweries was up and to the right throughout Reagan’s time when Anti-Trust was paused th…

Tasting rooms are a sort of panacea for upstart breweries. If your business plan involves constantly having your tasting room packed, then you're in for a hard time because only a handful of trendy breweries will manage that with hype. Where, actually ramping up production enough to a level beyond 50 barrels is the sustainable land where then you can expand through bootstrapping or more capital investment. In other words, it's hard to turn a profit without breaking past the tasting room.

The 90's microbrewery boom was fueled by brewpubs, many of which went public because they grew so quickly. Rock Bottom, Gordon Biersch, BJs, Iron Hill, Heartland, Russian River, Pizza Port, etc. That growth was more fueled by being a place you could eat and also grab a beer, but they couldn't figure out the distribution hacks needed to reach beyond the few square miles of the shopping mall or downtown block they were located.

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

#153
post #107
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…

MJ is an interesting product in that its not a carcinogen like tobacco. Its classification as a Schedule 1 drug has been entirely because of some racist elements of the US government making it illegal in the US. Anyways, the point is that it can be used in various forms. I see a bright future in the edibles industry. I find it hard to believe that any of the traditional confectionery companies (which are pretty conse…

ANY organic product that is burned can produce polycyclic aromatic hydrocarbons which are generally very carcinogenic.

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

#154
post #122

Earlier quoted context omitted.

You are correct! It's a relatively small number of ingredients to make beer that can be shipped pretty easily. Grain, hops, yeast, water, an assortment of adjuncts. The issues come in with the actual means of production , rather than the material ingredients. Brewing is a rather technically complex task. It's not trivial to do reliably - ask any homebrewer about batches they've skunked. It also benefits significantly…

> It's a relatively small number of ingredients to make beer that can be shipped pretty easily Contrast that with the finished product. A hoppy IPA is at its best for a limited time, and that is shortened by exposure to light and heat. Other beer styles vary, but none last for ever. This favours local production, not storage and shipping.

Not necessarily. There's new container and storage tech used these days that can make any beer basically last forever. Get a fresh 'crowler' sometime.

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

#155

Earlier quoted context omitted.

$10 (USD)? Luxury! NZ craft beer six pack: $22.99 UK craft beer 6 pack: £14 You Americans complain too much, easily one of the cheapest countries to buy booze I've been to

My first and last experience in Canada was when I saw a 30 rack of Natty Light for $60 USD (and a bunch of Canadians driving over the border to fill massive reservoir tanks with gas). Really left a bad taste! :P

Alcohol prices in Canada are sort of funny - the low end market is often massively inflated compared to the U.S., since the government (Ontario at least, I can't speak for the other provinces) sets minimum prices for alcohol - about $30 for a 24 pack of beer and about $10 for a bottle of wine.

As well, because (again, in Ontario) you have a single authority setting prices for all alcohol (beer and wine can in some cases be sold by private businesses, but the price is always controlled by the LCBO), prices are uniform across the province and you don't see the effect you see in the U.S. where rural areas have comparatively cheaper prices.

As a result, really cheap stuff is comparatively expensive but it levels out as the quality improves. I can get a 6 pack of Mill St, which is a higher quality but still mass produced beer (think maybe Goose Island) for $13 CAD / $10 USD, which isn't far off U.S. prices.

$60 for 30 Natty light is expensive though - remember that that's not a Canadian beer (I don't even think we can buy it in Ontario) - if you were buying Canadian or something like that you'd probably be closer to the $30 for 24 price.

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

#156

Earlier quoted context omitted.

My first and last experience in Canada was when I saw a 30 rack of Natty Light for $60 USD (and a bunch of Canadians driving over the border to fill massive reservoir tanks with gas). Really left a bad taste! :P

Alcohol taxes in Canada are set by province. In Quebec booze is very inexpensive. Were you in Ontario?

Beer is cheap in Quebec but wine is almost always more expensive than Ontario.

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

#157
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!

Not to be overly contrarian but it does seem that we are getting close to the peak for the craft beer industry. Smuttynose Brewery going up for auction is a great example of this. https://www.pressherald.com/2018/01/18/smuttynose-brewing-in... Many areas are getting over-saturated with microbreweries and there eventually won't be enough demand to sustain them. In retail, $10+ average price for a six pack, the even mo…

This seems so 2011. I get a 15-pack of my favorite beer for $15.99 at my local store. It's a little more expensive at Pubix, though ($17.99).

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

#158

Earlier quoted context omitted.

My first and last experience in Canada was when I saw a 30 rack of Natty Light for $60 USD (and a bunch of Canadians driving over the border to fill massive reservoir tanks with gas). Really left a bad taste! :P

Alcohol taxes in Canada are set by province. In Quebec booze is very inexpensive. Were you in Ontario?

This was in Vancouver

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

#159
post #111

Earlier quoted context omitted.

One of the things I miss about Italy is wine being an "Everyman" drink too. I wish people would kind of get over it being "fancy" in the US.

Wine is cheap in the US, too. Table wine, even in Italy, is no better than the $5 bottles we drink here. And the $100 stuff in the US is $100 there.

One of my favorite 'hidden gem' stops when showing people around Padova, where I lived, was taking them to the agricultural high school where my mother in law worked prior to retiring. Along with a working farm, they produced wine - and even grappa - there. It was actually pretty good, and if you bought it out of a tank rather than bottled it was very cheap.

Americans especially were quite amazed to see wine being produced and sold at a high school.

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

#160

Earlier quoted context omitted.

Not to be overly contrarian but it does seem that we are getting close to the peak for the craft beer industry. Smuttynose Brewery going up for auction is a great example of this. https://www.pressherald.com/2018/01/18/smuttynose-brewing-in... Many areas are getting over-saturated with microbreweries and there eventually won't be enough demand to sustain them. In retail, $10+ average price for a six pack, the even mo…

I agree the movement is likely nearing saturation on total number of microbreweries. However, $10 +/- a few dollars, for a six pack, is not a problem. The mediocre old domestics cost $7 to $10 around most of the US. Paying more is perfectly fine for a superior tasting product. Product price scaling works that way in most consumer goods, it makes sense.

...mediocre old domestics cost closer to $2. I can find that in Philadelphia, Ohio, NC, and even parts of NYC for less than $5.
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