Tag Archives: beer news

One Beer Article You Need To Read And Why, 6/3/17

I approach writing about beer differently from many of the bloggers and writers who cover beer.  I start with the writing first and I view craft brewing through the lens of a person who has been around writers and artists for much of his adult life.

One of my favorite websites is brainpickings.org.  It is a site of insatiable curiosity over a host of subjects curated by Maria Popova.  Today, I read a part of a lecture from writer Ursula K. Le Guin.  It concerned how creativity and storytelling help us shape ourselves and define our existence in this world.

The section that has the most resonance for craft brewing discusses how creativity is being commodified.  It isn’t just that businesses use the language and some of the practices of meditation and creativity in a pragmatic sense to increase workers’ productivity.  It is in how large companies have turned creativity and its resultant products into an industry.

A lot of popular movies, television, music, and books seem to come off assembly lines because they do.  Most of the entertainment companies you interact with daily are part of large conglomerates whose primary concerns are profits and stock prices.  Those companies prioritize guaranteed return on investment over creative inspiration.

Currently, in what seems to be turning into a forever war between craft beer and big beers is that big beer’s response to craft beer after years of ignoring it is to buy its creativity and the buzz that excites drinkers.  Big Beer is trying to take what makes craft beer special and monetized it by grafting it onto something they own.  This may work in the short-term (hell, maybe in the long term) but I don’t think so.  The thing that separates craft beer from big beer isn’t something you can see or touch and commodify.  It is that ineffable spark that only comes from original and creative work.  A large conglomerate like ABInbev will absorb Wicked Weed and any other brewers they purchase and slowly morph them into one of the many different shades of gray that are their “high end” brands because creativity isn’t measurable.

“The first Velvet Underground album only sold 10,000 copies, but everyone who bought it formed a band”

― Brian Eno

Big Beer is under the misapprehension that they are losing to Wicked Weed.  They are not.  They are losing to everyone who has drunk a Boston Lager, Sierra Nevada Pale Ale, Arrogant Bastard, Cantillon Iris, Rodenbach Grand Cru, and decided they wanted to make that. The creativity those beers have (or had) sparked something in enough potential brewers that the sheer number of craft breweries is changing beer in the United States and biting into Big Beer’s market share.

There is a twofold danger.  One, all these new craft breweries are starting to eat into each other’s market share as those who drink big beer solidifies into the final hard-core fans.  Two, if Big Beer muddies the waters enough, casual craft beer drinkers won’t know the difference.  The last is what I think Big Beer’s goal is.

Big Beer knows what winning is.  Keeping and increasing market share. The question craft beer must ask is, what does winning look like.  Is it just staying on the roof like Maggie the Cat or is it something else.

One Beer Article You Need To Read And Why, 6/2/17

Today, as I catch up to the world of beer news from my month away, I read this article about the continuing fight between North Carolina craft brewers, the large distributors, and the state legislature.

Apparently, and to no one’s shock, AB used to put language in their franchise agreements stating that the distributor agrees to push AB products above all else.  Now, the article rightly points out that this type of agreement is illegal under new laws and a consent agreement between ABInbev and the department of justice.

However, as we all know there is the law as it is written, there is the law as it is enforced, and there is the law as it is practiced.  Everyone in the beer world knows that while not requiring distributors to sell their products above all else, AB incentivises them with money if they hit certain levels of distribution.

Even if one believes that the franchise law changes and the consent agreement make these type of actions illegal, they signal a clear mindset that pervades AB and it distributors.  That is the zero-sum win at all costs mindset.  It is becoming increasingly clear that AB is not interested in a robust beer industry.  It is interested in controlling the beer industry for its own profit.

ABInbev and other big beer companies are a Leviathan whose main concern is feeding itself and growing ever larger.  Not through malice, but through its hardwired survival instinct, this beast devours all in its path.

How do you deal with such a beast? The same way you eat an elephant. One bite at a time.  It starts with beer drinkers making decisions every day with every purchase.  However, it goes beyond that.  It means individuals have to press their elected representatives to not allow large companies to trample and devour smaller companies for the sake of convenience and profit.

If you are a craft beer fan who lives in North Carolina and your state representative or senator has aligned himself against craft brewers and with the large distributors and big beer, you must let your unhappiness be known.  It is only through direct local action, that the world can change and Leviathan be defeated.

What Do We Do Now?

There was a great disturbance in the craft beer universe a month ago.  In the latest of a series of purchases by big beer, Wicked Weed Brewing in Asheville, NC was purchased by AB-InBev.  This had reverberations far beyond North Carolina where Wicked Weed was seen as the leading light of the state’s craft beer by many.

Luckily for me, I had the Cicerone exam to study for and recover from which afforded me the opportunity to organize my thoughts and opinions on the sale.  I did read the writing and opinions of others and can say much of what I read was cogent and interesting even when I may have disagreed with the writer’s conclusions.  However, too much of the writing degenerated into the, “I’m more CRAFT then you” didactic that is part of too much online discourse.  Too many craft supporters take the position that if you don’t agree with every point they’re making you are at best a big beer apologist or at worst a sellout like Wicked Weed.

That line of writing, discourse, and thinking is boring to read.  More importantly, at a time when craft beer is at a very important flexion point in its existence, it bogs the conversation down into needless finger pointing, keeping the conversation from moving forward into, “What do we do next?”

What do I think of the sale?

I am of two minds when it comes to the Wicked Weed sale or the sale of any other craft brewery to big beer.  First, is my business mind.  It tells me that neither I nor anyone else should presume to tell another person how to run their business.

While there are nebulous obligations to the craft beer collective and concrete obligations to the affected employees, in the end, the owner/brewer of the brewery must do right by the rest of the ownership group/investors.  You invest in a fledgling company or start up because you believe you will see a return on that investment at some point.  From a business perspective, this current moment in craft beer is a good time to sell a brewery.  The number of new breweries popping up is beginning to create greater and greater competition, that hurts future growth and current margins of breweries.  Cashing in may be the best advice for many breweries and their investors.

Also, in all honesty, if you are not an investor or a member of the ownership group of a brewery, you have no real idea what the original business plan promised potential investors and you have no idea what the other internal machinations lead a brewery to sell to AB or other big beer company.  You cannot attack someone who starts a business, builds it into a successful national brand, and then sells that business for a profit.  In almost any other business sector that is applauded.

Second is my small business/buy local/craft beer mind.  There are national coffee chains close to my apartment with slightly cheaper coffee and tea, however, I walk to a locally owned place a little farther away that has more personality and keeps my dollars in the community and appreciates my business.

So, while my business (i.e. intellectual) mind understands these decisions and accepts them, this second mind, while not angered is disappointed and saddened.  I am disappointed that we are losing a successful locally owned business to a conglomerate that treats beer like any other factory-made commodity.  I am saddened by the fact that much of the Wicked Weed beer you buy in 3 years will be a hollow facsimile of the Wicked Weed beer you can buy today.

This second mind knows that craft brewing is a creative endeavor and respects and honors the work it takes to make it creatively and financially.  The second mind believes that craft beer is about more than money.  It is a business and everyone wants to succeed, but as Greg Koch, founder of Stone Brewing, put it in this article, craft beer is more of a foot race then a hockey match.  Each craft brewer is running their own race pushing themselves and by extension everyone else by doing their own thing their own way to the best of their abilities.  Big beer treats beer as a zero-sum game where you win or die.  That point of view is not only antithetical to my personal beliefs, it stands in stark opposition to the founding principles of craft beer.

No craft brewer gets into brewing to make money.  The hours are long and there is no guarantee the yeast will create the beer you want or expect.  Brewers do this because they love that part of the challenge and they love how brewing allows them to express themselves.  This separates them from their investors who may not have the same almost romantic vision of brewing and expect to make money from this venture.

We must accept both realities as part of craft beers future to ensure its continued growth.

Back to Wicked Weed. I understand the sale, but I don’t like it.  Sometimes the money they offer is too great to turn down.  This sale like almost all the others before it is understandable and defensible on a business and intellectual level as individual business decisions.  They are, however, against everything the craft beer ethos espouses.

Where are we right now?

First, big beer companies are going to continue buying craft breweries.  That is part of a long-term strategy that will not change and is exacerbated by a business environment that makes some craft brewers ripe for buying.

Second, we know that capital investment in new and existing breweries is increasing as the segment matures as a business.  Many of these investors no longer just want to say they own part of a brewery to be cool but want to turn their investment into a profit.

Third, the almost exponential growth we saw in the last few years in the number of craft brewers is leading to equally exponential growth in competition for tap handles and shelf space among craft brewers.  The larger, regionally focused craft brewers are beginning to get squeezed out of the marketplace not necessarily by big beer and their many tentacles but by the mass of extremely localized small breweries that they inspired.  Many of those larger brewers have been faced with flat if not negative growth in the last year.  That is why this business environment breeds these sales.  For some breweries selling means recouping an investment now when that may not be possible in a few years’ time.

What do we do?

The first thing to do as a craft beer fan is to start simple and start local.  Let your love of craft beer inform your buying decisions of what and where you buy.  If you have local breweries near you, frequent them.  Buy their beer, their growlers, and their swag.  If you go to a local brewery and their beer isn’t as good as you had hoped, don’t frag them on social media. Send a personal email or letter to the owner/brewer expressing your concerns in a thoughtful and respectful manner.  We must be the ones who control craft beer.  Not the faceless conglomerates who could just as easily be selling ball bearings rather than beer.

Another thing you can do is join your state brewer’s guild or the Brewers Association as an affiliate member.  Most state guilds have this option to raise funds and create a group of supporters and volunteers.  For as many issues as you may have with some of the day to day decisions the Brewers Association and state guilds make, they are organizations whose expressed reason for existence is to support and promote independent craft brewers.  Give money, get a t-shirt, get newsletters, and get discounts at members taprooms for stuff you wanted to buy anyway.

Finally, bloggers, writers, and podcasters should try to be more Thomas Jefferson than Thomas Paine.  In every revolution, there is a time for rhetoricians to spit hot fire from the blog post or podcast microphone.  However, there is also a point when that loses its effectiveness.  You need equally iron-willed and no less committed people who will create and implement the ideas and theories that make the revolution’s goals self-sustaining.  Too often, online discussion about craft beer ends up with everyone talking in circles, saying nothing, and going nowhere.  However, for craft beer to continue to move forward through this time of growth and upheaval, we all need to step off the hamster wheel of online discourse and offer something thoughtful and new.

I don’t think big beer is evil, much in the same way I don’t think Hurricane Katrina was evil.  However, there are two things.  First, many of their business practices and the actions their distributors perpetrate in their name are detestable and contemptible and are rooted in the fundamental belief that this is a zero-sum proposition.  Every time we hear those stories we should challenge big beer in ways large and small. Second, AB will turn Wicked Weed into another one of its stable of beers with just a little twist to make it stand out in its sea of mediocrity and that is what is maybe the saddest part. What Wicked Weed could have become will never be.

One Beer Article You Need To Read And Why, 4/26/17

For the second consecutive day, I am highlighting an article that has nothing to do with beer.  Why do I do this?  Because people within a bubble often don’t notice anything outside the bubble and begin to believe their problems are unique.

ESPN is going to lay off about 100 people today.  Some of them you’ve never heard of and some them on air talent.  They are also slashing the contracts of some of the people staying.

ESPN’s revenues are usually around the $10 billion range. ESPNs problem is that a significant portion of those revenues come from carriage fees.  What are carriage fees you ask?  Look at your cable or satellite bill to find out.  Basically, ESPN gets a huge cut of all the carriage fees paid to cable/satellite companies.  However, if you haven’t heard, many people are abandoning cable/satellite for internet over the top services.  That means people are using Apple TV or Roku or other similar services to get their television fix. That leaves companies like ESPN, who because the way live sports rights fees work, screwed.  ESPN bought all the television rights for live sports, but didn’t or couldn’t buy the internet rights.  Now, a successful company that has almost always made the right decision is facing a troubled future.

Again, why I’m writing about this in a beer blog? Because, with all the talk about a craft beer bubble bursting or a shakeout of the craft beer business, we are watching as ESPN, one of the most successful and ubiquitous brands in the world, must lay off people.  ESPN has a good business plan and good leadership, yet they are still subject to the quickly changing landscape of their chosen business.

I learned to accept that people are here one day and then they are not at an early age.  When brands or businesses die, I don’t get angry at capitalism or the people who didn’t buy the thing.  I feel sorry for the people who lose their livelihood because of it and wish them luck and a speedy recovery to the land of the working.  Just because something exists doesn’t mean it must always exist.  Continued existence is not guaranteed for anything or anyone.

The thing I learned most from playing sports and then again when I started studying Zen and then again when I started his blog, is you cannot affect outcomes.  All you can do is what you are supposed to do to the best of your abilities.

If successful and powerful ESPN can make missteps and must lay off people, your brewery no matter how successful may have to do the same thing.  It may even have to close.  However, do not let that be the end.  Whatever happens in the next 5 years in craft brewing, don’t operate in fear.  Just control the things you can control.  It took a long time for me to understand that. It isn’t that there haven’t been failures or missteps, but I learned from those more than any of the successes.  How do you learn to walk? By falling down, getting back up, and doing something different then what made you fall down.

One Beer Article You Need To Read And Why, 4/27/17

I’m a romantic.  The only way to become truly cynical is to willingly throw your heart out there and to have it stomped on enough times that thick scar tissue forms around it and you so you don’t feel anymore.  Was that TMI?

Anyway, I’m a romantic, but I love stories that take a slightly bent view of romance.  My favorite romantic comedy of all time is Roman Holiday, the one where the guy doesn’t get the girl in the end.  If the news is slow one day I’ll give you my top 5 romantic comedies.

Yet, I continue to digress.  Stories that take a slightly bent view of romance are my favorite.  I like this story about mobile beer canaries precisely because in its unromanticized snapshot of brewery work, it sums up the romance of it exactly.  All the photos of inside the brewery are of guys in dirty rubber boots and overalls who look like they have been there for 12 hours because they have.  For the most part, they wouldn’t want to be anywhere else.

This story also sheds light on the economics of brewery work.  There are more breweries than ever which is great for the consumer, but hard for the brewer.  That is where mobile canning helps small brewers who can’t afford their own canning line.  Mobile canning operations allow them to get their beer canned and ready to sell without the overhead of keeping and running a small canning line somewhere in their facility allowing them to at least attempt to get shelf space in stores, and with so many new brewers out there that shelf space is getting harder and harder to get.

When I really began to understand that craft beer wasn’t just some little thing among a small diehard group of people, but a real industry is when I started noticing all the ancillary businesses popping up around craft beer.  Things like mobile canaries are what makes this more than just some mom and pop operation, but a real industry that politicians are going to have to take more seriously as an economic driver.  Many at the local level do, but that number is much smaller at the state and federal levels.

Craft beer isn’t just some little engine that could anymore.  It is developing into a true economically important business engine for parts of this country.  That isn’t a bad thing.  It also doesn’t mean craft beer is out of the woods as far as its survival.  However, as this story also points out the threat to that survival isn’t just big beer.  It is also its own growth.  Not every brewer that has started in the last 5 years will survive the next 5 years.  Some of those will be good breweries caught in a bad geographic area or who came too late or too early to the party.  However, the majority will be breweries that make mediocre beer, don’t have a brewing plan, or don’t have a business plan.  Or they do have those, but they are unrealistic and poorly executed.

What We Learned This Week 4/21/17

What did we learn this week?

This week we learned that the NC Legislature is a dysfunctional mess.  We already knew that after HB2 where they managed to solve a problem that didn’t exist thereby creating a bigger mess, but the debacle of HB500 is a red underline to go with the yellow highlighter that is HB2.  It isn’t that the legislature didn’t pass HB500 and increase the self-distribution limit for NC breweries and loosen up distribution rights contracts.  It is that the bill was not allowed to come up for a vote. It is that there was no attempt at negotiation on the part of those opposed to the bill.  That is not how you govern.  I used to love politics when you had two opposing parties who had the best of intentions for its constituents. Somewhere in the Clinton administration, both parties stopped caring about the people that voted for them and more about accumulating wins and power and imposing your beliefs on everyone whether they believe the same thing or not.  Anyway, this will end up in state court. Regardless of what the actual effects of the law changes would be, I support raising the cap and I support loosening the distribution contracts.

We also learned that Boston Beer is quickly moving on from being a craft brewer as well as being primarily a beer company.  This isn’t so bad except that Sam Koch and the rest of Boston Beer haven’t quite figured out that the general craft beer drinking public already think they aren’t craft brewers.  The leadership at Boston Beer is the guy who can’t let go of how great they were in high school or college and don’t understand how everyone else has moved on and doesn’t care about 20 years ago.  I think it is a sign of health and maturity of the craft beer industry that companies like Boston Beer, Sierra Nevada, Bells, etc. are moving on to the next phase of their existence.  The companies that don’t fight that growth, but embrace it and figure out how to use that maturity as an asset are the ones who will continue to grow in the future.

We learned that the Brewers Association does listen to its constituents or at least they are trying to keep themselves from looking like misogynists or worse.  The BA will no longer allow GABF or World Beer Cup winners with “offensive” names to use the medals as advertising nor will they announce the names at the ceremonies.  This is about as much as a voluntary membership organization can do to its members without pissing them off enough to leave.  This is more of a symbolic gesture to announce to brewers that they need to think twice about naming a beer that might offend a segment of the population.  This is an important point to remember as craft beer continues to saturate the 25-35-year-old white male market.  The BA knows the way you continue the growth of craft beer in the future is to attract non-white males to craft beer.  That starts with not offending them before they even walk in the door with the names of your beers.

Hopefully, we will learn more next week.

One Beer Article You Need To Read And Why, 4/20/17

Wooderson is kind of cool.  Yeah, it is creepy he still hangs out with high school girls when he is somewhere in his 20s, but he is still kind of cool mostly because he is played by Matthew McConaughey.  He hasn’t learned Chris Rock’s advice about being the old guy at the club.

I don’t think Sam Koch or Boston Beer company has learned that.  However, circumstances are proving that Chris Rock was correct for some brewers as well as Wooderson or guys like this.

Bryan Roth has written a great blog post about Boston Beer and why it may no longer be considered craft by the Brewers Association long after it is no longer considered craft by most craft beer drinkers.  I posit that the average 26-year-old sitting in a tap room he walked to from his apartment this afternoon thinks of Sam Adams the same as he thinks of Bud or Miller.  It seems at least recently Sam Koch didn’t understand this.  Also, until recently the Brewers Association agreed, literally changing its own rules to keep Boston Beer as a dues paying member.

That time is probably over and it should be according to Roth’s research.  Currently, estimates project that only 57.2% of Boston Beer’s barrel production comes from actual beer.  Why is that you ask?  They produce Angry Orchard and a bevy of hard sodas, teas, and other liquids with just enough alcohol to make the drinker think they are living on the edge.

I think it is harder for larger (and particularly legacy brewers) to change course as fast as the current craft beer scene requires.  I believe brewers like Boston Beer, Stone, Lagunitas, Stone and even Sierra Nevada are in danger.  That danger is not from ABI or MillerCoors.  It is from all the small locally focused brewers who were inspired by Boston Beer, Sierra Nevada and their like.

My advice to those breweries is not really an answer, but it is to be nimbler.  Figure out how to change course and quickly and adjust what you are offering to the craft beer public without changing the core of who and what you are.  The one way to do that is to bring in new, younger leadership.

That doesn’t mean to go out and find some hired gun CEO type to run the business.  It means elevating someone who has been with the brewery for a while and is steeped in what the brewery stands for to a position of true leadership and influence.  That is often the child of the founder like in the cases of Sierra Nevada and Bells Brewery.  In the last few years, both companies’ founders have begun the process of turning over decision-making to their children.  Time will tell if the younger leaders can manage this changing craft beer dynamic.

Valar Morgulis.  No one likes to see companies fail and die.  However, no company (or country) is guaranteed infinite existence.  Just as all men die, so do all companies eventually.  We, the craft beer drinkers of this country must accept this, especially of the next few years because some of the brewers that will go away will shock and surprise us.

One Beer Article You Need To Read And Why, 4/19/17

This week I’ve been concentrating on the future of craft beer after the shakeout it is undergoing is over (here and here).  The more I look at craft beer and its future, the more I think comparing the industry to a young college-aged man is apt.

In college, I remember bitching about my favorite bands selling out when they had the temerity to sign a real contract for real money with a real record label.  I remember wondering why women would get offended at sophomoric jokes about women and would use silly gay slurs when talking to my friends.  I remember being young and trying to figure out how to live a life that combines what I believe with finding a job that will pay me actual money.

Look at craft beer at the moment.  We have craft beer drinkers and fans who swear off any beer that takes a dime of “corporate” money while attacking anyone who doesn’t share their vitriol.  We have brewers who can’t understand why women and a growing number of men are offended by some of the, at best, insensitive names of beers and their accompanying labels.  We are watching craft beer grow up in front of us like a parent watches their college-aged son grow up and it is painful at times.

Today, I have two articles that I think speak to the growth and maturity of craft beer in different ways.  The first is about Brewdog.  This article that confirms what I have believed about Brewdog from the beginning which is while I believe that have a core set of values that centers on independence, much of what they say and do is simply self-promotional b.s.  They seem to care as much if not more about people talking about them then they do the independence they espouse.  They are the punk band you grew up liking because they seemed so real.  Then, you found out that was all part of the plan to get signed to major label.

The second article is from a panel Jason Notte participated in recently centered on what is currently happening in craft beer and how that will affect the industry’s future.  I take away two things from the article.  One, near term, we will see a shakeout of the smaller breweries who fail to consistently make quality beer.  This is similar to what happened in the late 90s/early 2000s shakeout.  The breweries that couldn’t produce enough consistent and consistently good beer closed leaving a core of brewers and breweries who led the charge to today’s explosive growth.

Two, many of those breweries that survived that period have become midsize/regional brewers and they are the most vulnerable in this new world order.  With the huge number of breweries, it benefits breweries to either be extremely small and local, part of a loose confederation of mid-sized breweries, or be owned by a huge conglomerate.  Trying to go on your own as a midsize/regional brewer like Stone has its pitfalls, at least in the near term.  I will be very interested to see how all the Colorado and west coast breweries building breweries on the east coast fare long-term.  Remember, Flying Dog tried this before eventually shutting down their brewery operations in Colorado.

This is a wonderful time to write and think about craft beer.  It is at a flection point where things can go many ways.  This is what I believe will happen.  The midsize/regional brewers like Stone, New Belgium, Deschutes will either join together or they will be purchased outright by the huge conglomerates.  At the same time, all the small local breweries that serve their city and maybe a few surrounding counties will continue to thrive because they serve the local need for fresh beer and an authentic experience.

One Beer Article You Need To Read And Why, 4/18/17

“Every time I call it a game, you call it a business. Every time I call it a business, you call it game.”

Today’s article is a clip from one of my favorite movies, North Dallas 40.

This is inspired by two things.  First, me wanting to explore what may happen to craft beer as it matures as an industry.  Here is yesterday’s post to start that off.  Second, it is inspired by a Twitter argument I watched happen last night between craft beer fans and writers.  It is the same argument that has raged in art circles for centuries.  At its heart is the, “You’re not (fill in your art form) enough.”

In craft beer, this usually manifests itself when someone, usually a writer who focuses on the business aspects of beer, talks about beer in a sometimes clinical manner that doesn’t scream “death to macrobeer.” This leads to them being called a sellout or worse yet a trader to craft beer.

Here is my take on this argument.

I started out my working life as a grant writer whose favorite job was working for McColl Center for Art + Innovation.  It is an artists-in-residence program here in Charlotte.  Working there gave me the opportunity to watch artists up close and see how the process works in real life and not in the romanticized version of art we all grew up with.

Real artists don’t sit around waiting for inspiration.  They work all day everyday at their craft.  The most successful of those artists know that at least 25% of that work is selling their art as well as the idealized version of themselves that patrons want.  The best artists not only understand their art, but they understand their place in the greater art world as well as the worth of their work.

I think brewers are as much craftspeople and artists as the painters and sculptors I met at McColl Center.  That doesn’t mean I think every brewer is a true artist just as I know not everyone who sells a painting they created is a true artist.  Some are individuals who found they have an affinity for something and have decided to monetize it as best they can.  Does that make them bad people? No.  It does mean that while their beer or their art is financially successful, it doesn’t inspire the way it should. The thing is, that is probably the majority of what is being sold and it is necessary for the industry to function.

Maybe my favorite part of that clip is when Matuszak says, “Job. Job. I don’t want no fucking job. I want to play football, you asshole.”

Anyone who makes their money in craft beer holds that sentiment dear to their heart. Whether they are an artist or not.  I do.  I have had real jobs.  They suck.  Whenever I’m annoyed by my job, I think back to almost all the other jobs I’ve had and I thank the stars that I run a craft beer bar instead.

I also think that anyone who pays their rent and buys food thanks to their job in craft beer lost their rose-colored glasses about craft beer long ago.  Just remember, you don’t have to lose the fun of craft beer or think of beer simply as a widget to be made and sold to think of ways that you don’t go broke doing this.

There should not be a dialectic between the art & craft of craft beer and the business of craft beer.  For any brewery to be successful and for the industry to be successful as it matures there must be a marriage between the two.  The artists I worked with those years ago taught me that.

One Beer Article You Need To Read And Why, 4/17/17

This feels good.  I’ve spent the last two weeks moving across town.  It is never the physical aspect of moving that upsets my balance.  I am a creature of habit and when you move all your habits get disrupted.  From the direction you drive to and from work, to where you shop and eat, to the sounds you hear as you try to sleep, moving is a disruption.  However, disruption is good.  It changes what you do, how you do it, and it shifts your perspective on many aspects of your life.

American craft beer has spent the last 20 years disrupting the whole beer industry.  As craft beer has expanded almost exponentially the last 5 years, many of us who have been around since the last “great expansion” have been fretting over another bubble bursting.  However, we may have had it wrong.  This article from The Motley Fool has a better term for what is coming: shakeout.

The difference between now and the bursting bubble of the late 90s is that the beer industry has matured and changed.  As the article points out, the coming shakeout will be a continuation of the consolidation we’ve seen begin with the mega-brewers buying up regional breweries and those same regional breweries consolidating themselves to protect against outside purchase.

With such explosive growth over the last few years, we have seen a lot of breweries enter the market who have no business being there.  Those breweries will be the leading edge of the coming contraction.  Of the ones I’ve seen shudder in the last 18 months or so, the most common reason is poor planning.

We all know the apocryphal story of many breweries that started as a home brewing enthusiasm that leads to good beer and friends deciding to pool their money and resources to start a brewery.  That is a dream that dances around the back of almost every home brewer’s mind.  That is a great story, that can go one of two ways that are mostly dependent upon having a good plan.

From my vantage point on the bar/retail side of craft beer, I encounter a lot of small breweries who either self-distribute or are starting to work with a distributor.  Some of the things I’ve noticed about the breweries have come and gone in just the 2.5 years we’ve been open

  1. Inconsistent beer. It is either, they have one good beer and the rest are mediocre at best or they have a few good beers, but they taste different with each batch.
  2. No plan for their beer. What is your brewery’s aesthetic as far as beer and personality? What is your plan for your core/year around beers?  What is your plan for your seasonal beers? What is your process for creating new beers?  Then, how will you market them?  That is why you need to know how your beer and your brewery’s personality are tied together as your business front face.
  3. No distribution/unrealistic distribution plan in your business plan. I’ve seen many breweries come into the Charlotte market with unrealistic expectations.  This market is immature in two ways. One, the craft beer drinking community is very young and new to craft beer.  Two, most the breweries in the market are less than 10 years old.  The market is also very locally focused (meaning Mecklenburg County) and very IPA and lighter craft beer focused.

I want to spend the rest of the week exploring these three points and how they may affect the next couple of years of craft beer.  Also, now with the move over, I have a new part of The Beer Counselor colony that will start in May.