It’s all in a name…

map of craftsIn the early 1970s when Miller Brewing Co. was testing their new beer Miller Lite, those of us in the beer industry were not certain about the identify of this new product.  We soon learned it was a lighter beer, but with a higher price.  And the consumer certainly was not yet aware of the new product either.

It was not until Miller began advertising their famous tag line, “Great Taste, Less Filling” that the realization of exactly what this new beer was come to fruition. Miller Brewing had created an entirely new beer category.  Light beer, which had not been in existence before, was now a new market segment. Clearly, a lower calorie beer category was now an option for the consumer.

The introduction of this new market category was unlike the introduction of imported beers. Led by Heineken and Corona, imported beers became popular in the US during the 1980s.  Consumers knew by the brand name, for example, that Heineken was imported.  They knew that Warsteiner, too, among many others, was imported.

There have recently been numerous articles questioning just what categorizes one as a craft beer.  The Brewers Association has a definition of a craft brewer on its website.  So the question now is does the industry need to have a craft beer designation?

Consider the fact that a craft brewer has a production of less than six million bbls.  Really?  When Pabst Brewing Co. was peaking in 1960, it did just under five million bbls. of beer.  Does anyone consider Pabst Blue Ribbon a craft beer?  It was not long ago that many regional brewers did over one million bbls. of beer.  Is Lone Star a craft beer?  Is Iron City a craft beer?  What about Drewry’s craft, or Jax craft?  Should volume define a craft beer?

The term independent means less than 25% of the craft brewery is owned or controlled by an alcoholic beverage industry member that is not itself a craft brewer.  If this is true, then many imports would fall into that segment.  Just how does Boston Brewing fit?  The company is public so that makes it craft?

The Craft Brewing Association’s definition of a craft beer is: a beer whose flavor derives from traditional or innovative brewing ingredients and the product’s fermentation.  Maybe that would include IPAs, Wheat’s, Ales, Stouts and Porters?  Again, that means many European brewers would fit the description as they have been brewing IPAs, Wheat’s, Ales, Stouts, Porters and others for centuries.  Is there a disconnect in the definition of craft beers?

Another recent article on branding addressed how certain companies are able to create cults, specifically the mega tech company Apple.  When a new IPhone is released, customers line up for blocks simply for the opportunity to purchase the latest edition of the product.  Apple may just be the personification of a cult following.

If that is the case, than perhaps the term craft equates to nothing more than a cult or following.  By saying a beer is a craft designates it as a product which now is the hottest segment of the beer market.

The definition of craft is not nearly as clear as what the definition of a light beer or even an import beer.  If the above is true, then all the term craft means is that the product is a marketing or branding term and therefore, has no true meaning.

If a beer is one of the most identifiable consumer products that one can afford, and purchasing a particular brand is highly aligned with the consumer’s belief of who he/she is, then does buying a craft beer mean the consumer is part of a cult, like Apple?

This discussion will continue for years as the craft segment continues to grow.  After all, it’s all in the name….

Beer Fodder; http://www.thrillist.com/drink/nation/best-american-craft-breweries-best-craft-breweries-in-america

 

 

 


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One response to “It’s all in a name…”

  1. Jimmy Yahnis Avatar
    Jimmy Yahnis

    Geoff,

    I enjoy your perspective on the industry.

    The craft brewers are becoming very political. They include up to 6 million barrels to include Jim Koch, Dick Yuengling and Ken Grossman. Their proposed legislation to reduce the excise tax has to include these guys for clout. However, no one believes that 6 million is small, especially since these three guys are billionnaires (not that there is wrong with making money). They change with the tide.

    JY

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