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The Delicious Winners Of the American Beer War
Wolf Richter www.testosteronepit.com www.amazon.com/author/wolfrichter
Amidst all the things in the US economy that aren’t going in the right direction, the debacles, fiascos, and nightmares, is an industry of scrappy upstarts, tiny operations, and larger companies that use American ingenuity, marketing, and the right amount of hops to stand up to Wall-Street-engineered giants.
Beer is one heck of a tough industry in the US. Production peaked in 1990 and has since receded in small increments despite the enormous marketing efforts and Super Bowl ads by the largest brewing empires the word has ever seen. 2012 was a rare up-year, with a growth of a whopping 0.9%. But the growing population over those two decades has covered up an industry horror: per-capita beer production has fallen, according to the latest Brewers Almanac, from 26.2 gallons in 1982 to 19.2 gallons in 2011 as people switched from beer to wine.
But there is one subgroup in the $99 billion industry that is doing phenomenally well: craft brewers. In an economy that was stumbling along in 2012, they booked 15% growth by volume and 17% by dollars, according to the Brewers Association. Their market share in 2012 reached 6.5% by volume—up from 5.7% in 2011. It’s coming out of the hides of the big guys. In retail dollars, their market share grew to 10.2%, the first time ever in the double digits.
The higher market share in dollars is a result of their strategy to sell a premium product for a premium price. And people are buying it! “High quality, flavor-forward” is how Paul Gatza, director of the Brewers Association describes these brewskis. Craft brewers employed 108,440 people by the end of 2012 and created 4,857 new jobs. For the first time, retail sales broke through the $10 billion mark.
And they’re flexing their new muscles abroad: in 2012, export volume jumped 72%, to well, $49 million. Okay, tiny muscles. Less than 0.5% of the craft beer sold in the US, and barely noticeable in the overall scheme of things. It’s not going to reverse the US trade deficit anytime soon. Canada is the largest export market, with Sweden and the UK in second and third place. And shipments to Japan jumped 57%. Every little bit counts.
Breweries are popping up at a rate of over one a day! By the end of last year, 409 new breweries—310 microbreweries and 99 brewpubs—were in operation. But it’s not a laid-back affair. In addition to being able to brew good beer, they also have to be able to stay alive as a business. Not all did: 43 breweries shut down. So, by year end, a total of 2,347 craft breweries were in operation (1,132 brewpubs, 1,118 microbreweries, and 97 regional craft breweries). Almost all of them were closely held.
Back in the day before refrigeration, when beer didn’t last long and was difficult to transport across long distances, every town worth its salt had a brewery. The Brewers Almanac, whose data series goes back to 1887, recorded 2,269 breweries that year—the highpoint in the series. By 1918, the brewery count was down to 1,092. In 1920, after the prohibition kicked it, it was zero. But in 1933, suddenly 331 breweries popped back up. By 1941, there were 857, and that was it, the second peak.
With more efficient transportation, refrigeration, and industrial production, the industry consolidated into giants—57 by 1975. But a change was underfoot: among these 57 was 1 craft brewery. Now the industrial giants are down to 20. Three multinational corporations own most of them: InBev in Brazil, SABMiller in the UK, and Molson Coors Brewing Company in Canada. Pabst Brewing Company is still independent. And in 2012, they continued to lose market share.
But these 2,347 tiny craft brewers that have now pushed the brewery count beyond the 1887 high of recorded beer history keep winning the hearts and taste buds of American consumers. An incredible feat in our crazy times of financial engineering, outsourcing, and off-shoring. Their small-scale production is no longer just carving out a niche; it’s winning the large-scale beer war against the giants. Because their products rock!
Decades of economic mismanagement, political ineptitude, corruption, and financial fraud in Latin America – overseen by the IMF, now a protagonist in Europe’s Troika – reached their nadir in the Mexican Tequila Crisis. It should have served as a portent of the financial storms now buffeting Europe. Read.... The Tequila Crisis: The Prelude to Europe’s Economic Storm
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Thanks for the tips, I'll try them.
When I was a kid we used to love Olympia, Colt 45, and Old English (was it "800?")...but then our main point was to get drunk, at least when drinking the last two.
"8 ball rollin'!"
Yeah, I was there once, too.
At least you knew why Old E tasted like charcoal - it was charcoal filtered! -lol-
I also remember doing a test. There was a commercial out that said, "I'm looking for a man with a Turbo [I think that was the brand of beer, anyway] in his hand."
D*med liars. -lol-
We EC lads miss nothing:
http://www.ommegang.com/
go for Three Philosophers Belgian Abbey Ale
"Three Philosophers is a unique blend of a Belgian-style strong dark ale and Liefmans Kriek, an authentic cherry ale from Belgium. Cherry chestnut in color, it's opaque but not cloudy with full carbonation topped by a smooth, tan head. Flavors and aromas of roasted malt, molasses and brown sugar, dark fruits, brandied raisins and chocolate, Three Philosophers has notable sweetness with low hop bitterness. The mid-palate shows a soft malt center which gives way to a dry, warm, wine-like finish.
The strength and complexity of this beer make it a good candidate for ageing gracefully, as spicy sherry and port notes should intensify."
Enjoy at 50 deg F
English beer is piss. And nothing beats beers from Belgium. But good to see that Americans are losing their taste for tasteless piss such as Budd, Miller or Coors. Are Americans developing a culture?? ;-)
Chimay, Golden Draak, Delerium Tremens, Pirat, and Duvell are great. Got any other recommendations?
For you Canadians, I suggest anything from Unibroue.
Great list. Also try Westmalle, Kriek Lambiek, La Chouffe, Kwak, Guillotine (that will take your head off with its 12% alcohol). They have so many beers in Belgium. They are the true masters.
America has the greatest culture in the world. Just ask all the people who are trying to enter the US. It is a significant rejection of your home and culture to come to the US. Actions speak louder than words and yet most liberals can't understand.
Most Craft beer sucks. It is overly hoppy to cover up the lack of the ability to actually brew beer.
Most of the large brewing companies beer is complex and difficult to brew. That is why you don't see anything close to it at these smaller breweries.
And so many more people in the world are just happy where they are, thank you very much. Culture is more than making money, which is the main reason people want to come to America.
And large breweries' beer is very easy to make, that is why it is so cheap. It is the artesan beer that takes more craft to brew. If you had had any culture yourself you would understand.
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Most of the large brewing companies beer is complex and difficult to brew.
Complex? Try cheap. Just straight 2-row and noble hops. Throw in some corn. Anyone could make that.
No, I don't believe that. If it was that easy they couldn't charge 4 dollars per 12-pak.
You could conceivably make your own Miller Lite clone for about $4/12 pack. Or make something with some serious malt body and hops bite for $6/12 pack.
10 lbs. Vienna malt = $~15; 2 oz. Mt. Hood hops = $~3; 1 sachet Nottingham dry yeast = $~3
$~20 will get you 50 tasty beers.
#homebrewing
You mean using GMO hops and grains? Just what I want in my beer, yeeehahhhh. I'll take my Leinenkughel over anything else brewed, right here in the land of cheese!
Overlay a chart of DUI's and all the cash taken out of the economy to go into lawyers and 12 step programs.
Overlay a chart of DUI's
Good idea. And while you're at it, overlay a chart of Type II diabetes and the morbid obesity rate in the population, plus projections for the costs of treating all these 300 lb. high fructose corn syrup addicted rhinos--er, I meant hippos, under ObamaCare.
Pays to have a 15 year old daughter and a sober wife. No drinky and drivey for me.
I do all of my drinking at home. Never had a DUI in my lifetime, never will. On the ohter hand, got three brother-in-laws that are quite familiar with the legal system in that regards. Fortunately age has caused them to wise up, a whole lot. Probably money had something to do with that as well.
Re I do all of my drinking at home...
Don't you have a problem parking the house?
That explains the recent remodel.
American beer? Have not bought any of that since the late 70's when it was still illegal for me to do so due to youth. I like dark beers, the darker the better. Sitting here nursing my second Guinness Extra Stout of the day, headed toward #3. Then onto some Wild Turkey 101.
Also like Heineken Dark Lager.
Guinness: if it's genuine you should be able to taste the nails and bicycle chains.
Actually I'm a Heineken man myself, but there's a LOT of good micro-American breweries.
I talked to one about a year ago about starting a bartering program and the owner laughed and said they were having a fucking great year...but thanx anyway.
Guess when people get depressed they'll still go to the movies and have drink to forget.
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Change to the American micro breweries my friend, so much better probably than Heineken. Heineken in its country of origin Holland is considered beer for plebs and students trying to get piss drink. It is not considered a 'special' beer at all. If you want a pilsner, try something else than Heineken. I never understood the hype about Heineken in the US.
I tried the Heineken once when it first hit the U.S., and to this day can't understand why the lable is some sort of status symbol when folks are out ordering beer. They'd never drink it at home.
It tastes nasty and only one beer already gives me a headache. I -like you- don't understand the hype.
Dead right ! Every time I try it, I end up with a headache.
That's usually a sign (to me) of alcohol added post-fermentation.
It takes at least a couple of real beers (preferably highly hopped) to get rid of that shit...
heine good from a can if you can find it. green bottle means skunk.
I do not drink green bottle heinekin. I drink the brown bottle stuff. WHen you pour it in a glass you cannot see through it. Dark brown in color and way better than the green bottle stuff.
But I still prefer Guinness Extra Stout over Heinekin any day.
And either is better than any of the mass market stuff they sell as beer here in the U.S. I've been drinking Heinekin Dark Lager and Guinness Sxtra Stout most of my adult life, not switching to some micro brewery stuff at any poin of time in the future. Y'all can have them.
Can you get Bokbier or Bockbier in the US? It's an autumn beer and I have to admit that even Heineken is making a decent one. If you like dark beers you would like this as well although not as heavy as dark beer.
Troeg makes a doppelbock call Troegenator, and Rogue has their Dead Guy which is a pseudo-maibock fermented with their Pacman Yeast. I say "pseudo" because I understand Pacman is a top-fermenting yeast, so it's not a true bock, but it ferments so cleanly it's damn tough to tell the difference.
Dead Guy - what a name for a beer!
"Optimator"---now you're talking BEER. Spaten's Optimator is one fine doppelbock. Thumbs up just for the name.
If you're a pilsner guy, try the Czech Pilsner Urquell.
http://images.search.yahoo.com/search/images?_adv_prop=image&fr=altavist...
There is a liquor store close to me that has outdated beer on sale. I always buy all of the Pilsner Urquell when it is available as it has never been skunky. A 12 pack for 5.99 as are all of the others that are still good. They will refund on any that I claim are bad, so I have little downside. There are lots of USA brews such as Capital and Sam Adams, neither of which push my button.
The place picks up the sales tax too if I buy enough, which is never a problem if they have Urquell or similar. Being a cheap SOB gets me some outstanding beer at a very low price.
Foster's. Australian for Schlitz.
SMUTTYNOSE OR BUST!!!
My bad. I quit drinking in 1984. I estimate about 54 gallons per month personal consumption. I really needed to quit.
Wow. That's almost exactly the amount Clueless Economist had yesterday. He had 19.3 beers and you're saying you had 19.2 EVERY DAY. That's truly impressive.
Congratulations Father! Quit myself for 20 years, but decided to have a few beers at night to relax. Don't go out and start fights, just here on ZH sometimes with trolls that need it.
Bullish for Victory malt and high-alpha-acid hops.
Heineken? Fuck that shit! Pabst Blue Ribbon!
Shut up! It's daddy, shithead. Where's my bourbon?
Frank Booth - RIP Hopper
Been drinking craft beer exclusively for the last decade. Happy to be a part of the consumer base that is sticking it to the evil empire that is Anheiser Busch.
Fuck the man, buy craft beer!
>>Fuck the man, buy craft beer!<<
Here here!
That's the spirit of liberty and freedom!
Hopefully, more people catch on.
Defund this Machiavellian demon-spawn from hell.
Buy local, buy small, pay cash (credit card fees fund the Machiavellian demon-spawn).
Raise your own food.
Secure the necessities of life.
going on 15 years since I`ve had a GMO corn/rice beer from the corporate giants. 3floyds when I can get it, make my own when I can`t. Watch out for "craft" beers that are really not...check the label.
http://www.ratebeer.com/beer/top-50-custom/
In Japan they make Bud/Miller, etc., actually state the ingredients on the can. They read the same: water, rice, corn starch, barley, hops. GMO or not, it's still rice and corn.
I don't know what beer is made from corn
All rice and wheat are NON GMO grain.
Drink what you like, but get your facts straight.
Miller uses corn. I've toured their brewery in Milwaukee. The tour guide definitely said corn was one of the ingredients. I definitely said corn doesn't belong in beer. He said that it was a matter of opinion.
I suppose he is correct. I won't be drinking it though.
A lot of beers are made from corn. Brewers usually call it "maize" because people get confused so easily.
Monsanto developed Roundup Ready wheat ten years ago, but no one would buy it.
And the USDA would not allow GMO wheat's consumption by humans.
Bud is made with rice it is 100% non gmo. The marketplace allows for non Gmo consumption of every edible product imaginable. Just read the label. If it is made with non GMO it proudly states it on the label.
All of the ZHers that are so free market seem the first to demand that our government step in and outlaw gmo products.
How sad
I don't ever recall hearing a Zero demand that the government step in and do anything, other than eat poop and die.
What Hedgers want is for the government to stop hiding the facts about GMO foods, stop hiring Monsanto executives to run the FDA, and stop trying to put farmers out of business for refusing to use Terminator seed and other toxic waste as the basis for food.
See the film Food, Inc.
Corona for one.