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Craft Beer Is the Strangest, Happiest Economic Story in America

theatlantic.com

161–168 of 168 posts

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

#161
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-…

Agreed - the three tier system is awful for both craft beer and craft whisk(e)y.

Big Beer is in bed with Big Distribution, and they've been able to circumvent the "protections" for years now. There's effectively two tiers, and allocation of popular beers like the annual Bourbon County release being based on sales of AB InBev products show that the second tier isn't actually able to resist the other part in an effective manner.

You also have breweries that are tiny in comparison to Big Beer that have to do silly things to sell their own beer in the taproom - most states have 'brewpub' type licensing at this point, where really small breweries can sell packaged beer to go, but then as they get bigger (But still a fraction of a percent of the size of AB InBev or MillerCoors) they have to convert to a regular brewery license. Then, if you're in a state that allows regular breweries to sell packaged beer to go, in most of them, you have to sell your beer to a distributor and then buy it back to sell in the taproom. It will never go into their possession, and you will wheel it from your packaging room to your tap room, and you'll effectively have paid a distributor 20% of your cost to do literally nothing.

It's a racket, and the idea that the three tier system as it stands now is a good thing for craft beer is insane.

It's similarly bad for the craft whisk(e)y industry, and I imagine for craft liquor in general, though I am less familiar with things outside of whisky. When doing American distribution, it is uneconomical to provide a variety of small batch offerings and extremely limited bottlings. American retailers and bars get a rather generic lineup of whisky that has a standard set of years and a few variations on barrel types.

Now go to a high end whisky bar in Asia, like the Mash Tun in Tokyo, or the Drunken Master in Taiwan - you'll find a huge variety of small batch whiskies done with bottle limits in the low hundreds, often specially bottled for a collection of these bars. And the prices to the consumer will be tiny in comparison to America, even with these being expensive cities. They can get these directly from the distilleries without the distribution markup or red tape overhead and it lets them get unique bottles and flavor profiles at a low enough cost that consumers can feel free to experiment with new whiskies without breaking the bank. I've had tabs for ~$100 that based on aged years alone would have been $500+ in the US, without even taking into account the rarity. I could never afford to do that in the US, and it's a shame, because the only people being protected in this case are middlemen and big businesses.

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

#162
post #154

Earlier quoted context omitted.

> 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.

I think one of the 2 local craft beer shops has those, for maybe 2 or 3 beers on keg. Compared to hundreds in cans and bottles.

The crowler is basically a can, and the likes of a Stone Enjoy By or a Brewdog Born to Die are not going to be the same forever, even in cold dark storage in a can. The aromatic oils in the hops change over the course of weeks. I have tasted that. They might still be edible, but tasty? Not for ever.

Even a 12% ABV Imperial stout can lose flavour in the bottle after 2 years or more.

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

#163
post #14

Eventually alcohol usage will be looked upon with great fascination of a custom of a barbarian age: "They used to actually drink poison for thousands of years but we have moved on." It'll take time but it'll happen.

Driving in a gas powered automobile is a lot more barbaric than drinking beer ;-)

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

#164
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.

You can just squeeze it on a cracker. Some people like brownies, but using edibles to get high makes as much sense to me as eating rum balls to get drunk.

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

#165
post #123

Earlier quoted context omitted.

They typically take longer to finish as well. That said, I’ve been encouraged by more lagers from craft breweries showing up. There are some terrific ones that have been around for a long time too, say Prima Pils from Victory.

What do you mean by finish? I was taught by a brewer friend that lager takes a fraction of the time ales do. (due to faster fermentation from the yeast being on top and nearer oxygen).

Common misconception. Fermentation happens throughout the wort, which is one reason you want it well-aerated before pitching the yeast. Yeast, when _done_ fermenting, flocculate at the top or bottom. Very little oxygen should be near the top of the wort during fermentation, due to CO2 accumulation.

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

#166
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…

Craft breweries are still small businesses and live and die by their business decisions. If you borrow millions to build a fancy new brewery/attraction, and then people don’t come, it doesn’t matter how good your beer is.

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

#167
post #123

Earlier quoted context omitted.

They typically take longer to finish as well. That said, I’ve been encouraged by more lagers from craft breweries showing up. There are some terrific ones that have been around for a long time too, say Prima Pils from Victory.

What do you mean by finish? I was taught by a brewer friend that lager takes a fraction of the time ales do. (due to faster fermentation from the yeast being on top and nearer oxygen).

That is exactly backwards - ale yeasts are so-called "top-fermenting", prefer higher temperatures, and typically finish faster. Also, there is typically no oxygen available during fermentation beyond what is dissolved in the wort to begin with. Any oxygen in the fermenter's headspace is quickly pushed out by the yeast's CO2 production. The dissolved oxygen is quickly consumed by the yeast.

That said, I believe many breweries have figured out rapid lager production processes and are able to turn around lagers in about the same time as ales.

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

#168

Earlier quoted context omitted.

Craft beers are cheaper for restaurants and have a higher profit margin, and there's the "community" factor of having local brews; and in some cases just some "good ole boy" attitude. There are a lot of incentives. It has not much to do with net sales, because it is offset by other incentives. Customers don't often complain, especially in bars that are for partying and generally just getting drunk. Who cares if this…

There is feedback, the fact that the business is making more money means they made the right decision.

That's not always the case, there may be a short term gain, but long term it may hurt sales as people go to different bars with more imports on tap. Here in Nashville there has been an influx of beer halls that serve German and Belgian beers, imo as a backlash to the localization of beers.
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