Craft Beer is Dead, Long Live Beer Craft
The craft beer revolution erupted in the USA around the beginning of this century, at a time when the big, macro brewers dominated the market and volume over variety prevailed.
The craft beer revolution erupted in the USA around the beginning of this century, at a time when the big, macro brewers dominated the market and volume over variety prevailed.
The American craft brewers had largely graduated from the ‘school’ of homebrewing and many had taken their inspiration from the traditional ales of both the UK and other European brewing nations. It was thanks to these early pioneers that the eponymous term Craft Beer came into being and the craft beer revolution that ensued has become a textbook case of how to reposition a category from commodity to high-end. The Brewers Association (BA) formed in 2005, was fundamental in helping these brewers unite in transforming the habit of a nation. According to BA stats, in the space of two decades craft’s share of the American beer market had grown to 13% by volume and a whopping 25% by value ($30 billion).
Not only had these craft brewers reinvented many of our own traditional beers (IPA being the exemplar) they also discovered the transformative power of branding – Milton Glazer branded Brooklyn Brewery, Ralph Steadman created the Flying Dog packaging and Odell was reinvented thanks to its rebrand. The smart brewers invested in brand design to create a unique positioning for their beers and their packaging became their guerilla tactic of choice – no need for mass media campaigns. The UK duly followed suit, eschewing the traditional beers that had so inspired the Americans, and a new generation of breweries came about – peaking at over 2,000.
However, the term Craft Beer is a nebulous one and very much dependant on the mind of the beholder. Even the Brewers Association had to keep redefining their measures of what constituted an American craft brewer (‘small and independent’) as its members grew to national scale. Many of those successful craft brewers now exist simply as a part of larger brand portfolios owned by big brewers, who followed the American business ethos of ‘if you can’t beat them, buy them’.
The UK faces a similar dilemma in understanding the meaning of Craft Beer. Some of our most successful craft brewers have monetised their investment and become part of bigger entities. Whilst the off-trade retailers (accounting for approximately 60% of our beer sales) have adopted their own categorisations. For example, if you check out the Tesco website for Craft Beer the leaders of the pack are: Guinness, Beavertown, Brew Dog and Camden…
Moreover, what of the consumer. The craft brewers have changed our drinking habits – we have become more experimental and promiscuous in our choice of beers, and many of us are hooked on hops. We are also willing to pay considerably more for our pint. However, the market has gravitated towards the middle ground (big brewer territory) and most ‘craft beers’ have evolved from the hop forward, high ABVs of earlier times to being more sessional, with ABVs plummeting. Cask conditioned beer, the inspiration for the American craft revolutionaries, is being rediscovered by a new generation of drinkers, as are our traditional and authentic breweries too.
The Craft Beer Revolution is over and we are all the revolution now (to misquote Napoleon). At the end of the day, beer is beer, it is a part of our social culture (as are our pubs and bars) and the democratic drink of choice by many. The legacy is that we have a greater appreciation for beer craft – quality, taste and variety of choice. Small artisan brewers are here to stay and there is a propensity for consumers to buy local.