Craft vs. Corp, Beer Drinkers will drive the industry’s future!

Craft vs. Corp, Beer Drinkers will drive the industry’s future!

I recall frequenting a couple of craft beer bars in northern Virginia in the early ‘90’s which both used the phrase, “No Bud, No Coors, No Miller, No Crap on Tap!” as a marketing and positioning statement.  So that’s where we’re going with this post, a look into the evolution of craft beer appreciation AND how “Big Beer” is attempting to influence how consumers approach their craft beer favorites. 

            In a recent blog entry the website “VinePair” (Craft Buyouts are turning AB InBev into the Walmart of Beer, 11/2/17) it was revealed that 30% of survey respondents said independent ownership of a brewer is extremely important.  This would suggest, although a minority, the craft beer aficionado cares deeply about the independence or the brewery from which their favorite quaff hales. The battle lines of Macro vs. Micro-brewery are becoming clearer as suggested by the backlash from craft beer fans and the creation in July, 2017 of the “Certified Independent Craft” seal available to breweries that fit the definition as established by the Brewers Association.  Pushing the point forward a recent Harris Poll that found 81% of respondents identified the words “independent” and “independently owned” as the keywords driving craft beer sales forward.

            Much of the ballyhoo over mega-brewers purchase of craft breweries is reflected in beer consumers identifying craft brewers as locally-owned, often family, businesses that support their community through vendor purchases, employment and providing value through their products.  Economists cite microbreweries as the type of business that actually “grows” the economy as 98% of them are locally owned small businesses.  Not only are mega-brewers purchasing local craft breweries to gain market share, they’re also attempting to influence how consumers receive their information about craft beer (Beer Giants threaten Craft Breweries, 11/24/17).  AB InBev has created a venture capital firm (ZV Ventures) that has been investing in beer rating websites and delivery services to restrict craft beer sales.  The Brewers Association is concerned this activity could confuse consumers purchasing behavior and try to influence true craft beer sales.

            Presently owners and operators of craft beer taprooms and restaurants, who previously looked away at the mega-beer purchases of craft breweries, have come to realize the old adage, “the customer’s always right” and have begun the process of removing corporate beer tap handles from their beer offerings.  Operators from coast-to-coast and deep within the heartland (More Bars are booting corporate beer from their taps and doubling down on Craft, 11/27/17) now understand if their guests demand craft beer, it had better be craft beer and not “Corp-Craft” malted beverages on tap.  These hospitality operators are recognizing that the lines between ownership of a beer brand and its’ authenticity as a craft product are becoming blurred.  Some owners believe that company’s such as AB InBev and MillerCoors are attempting to entirely take over a market they already dominate at 71% of all domestic beer sales!  The mega-brewers even are taking it to the point where they’re using the “brand identity” of the craft beers they purchase to open draft beer bars across the country.

            Hey, I freely admit I am a capitalist, as I understand it, and believe in our system as compared to what’s currently offered in some third-world countries especially those which alter the value of their currency.  I’m encouraged that consumers and hospitality operators alike are pushing back against “Corp-Craft” and hope more beer drinkers join them.  Local breweries create competition and that’s the root of our economic system, without it we’re all just drinking that “Crap on Tap!” as the mega-brewers will have usurped the entire craft beer landscape.  For more insight into hospitality operations, brand building, operations innovations and perhaps hoisting a cold one please contact us at www.themenuspring.com.