By Jamie Barrie T here are a lot of beer options out there and marking plays a large role in what most consumers drink so we thought that we would make sure that you are tapped into the what you are drinking. In the beer industry there are many terms that get thrown around a lot and you might be drinking something that you thought was craft beer but is not. So, we thought that we would give you some definitions of Craft Brewer, Indepen- dent Brewer and Small Brewer to make things a little more clear. As you know the term “craft” beers is thrown around a lot, as is one of the fastest growing sectors in the beer industry, well any industry for that matter. But some say that a “craft” beer is more about how and why something is made, rather than who it is made by, so technically; AB InBev could and does offer what is they believe to be a “craft” beer. Well I believe that it is time clear up what a “craft” is and should be. In any growing market the companies will be taken over or merger and the beer industry is no different as more and more craft brands are being gobbled up by the major producers like AB InBev. It is time to come to “terms” and distinguish between “craft” brewers and “independent” brewers. The U.S. based Brewers Association defines craft breweries as inde- pendent businesses that produce less than 12 million kegs (14.04 million hectolitres) of beer annually. So that being said, according to their definition, an independent brewer using the same methods and ingredients as a macro brewer producing less than 12 million kegs of beer would be consid- ered a craft brewer. If that same brewer is producing more that 12 million kegs they are no longer considered “craft” brewer based purely on production. We do not think that makes sense at all, does it? So we thought that we would filter out some of the verbiage and try to add some clarity to the definitions of “craft brewer,” “independent brewer,” a new term “small brewer” now used if a brewer produces less than 598 thousand kegs (700,000 hectolitres) of beer.
I am by no means an expert, but this is what I have put together: Craft Brewer – We believe that it is about the ingredients used and how the beer is made. Craft beer is beer that is brewed in batches with the finest quality ingre- dients, and is done on a limited basis or may be a seasonal brew. Many craft breweries take pride in not only the ingre- dients used to make their beer but also in the equipment used to produce it, such as wood barrels to produce just the right tastes. However, I agree with the ingredients, but feel that automation has no bearing on whether a brewer is craft or not, as innovation in this sector has made auto- mation a cost effective option now for most brewers, plus automation helps ensure quality and consistency, which all of consumers and producers want in their beer. Independent Brewer – So, if the brewer or brewery is a brand or subsidiary of AB InBev, Molson Coors or any other macro brewery, then you are out and you are not independent, I think it is that simple. Yes you can still be a craft brewery, based on definition, but we will consider you a macro brewery brand. Small Brewer – Newest term to hit the brewing industry and the one that most brewery start ups will fall under for the first couple of years they are in business. These will be the Brew Pubs and Tap Rooms and new brewery starts up as long as they are below the 700,000 hectolitres in annual production threshold. So, what if the brewer is under the threshold, but is a brand of one of the macro brewers? You guessed it, you are a macro brewery. So a brewery can have a small production level and still be considered a macro brewery. So not sure if this helped any, and might have even added to the confusion of the terms used in the industry however, one thing that I do know is that it is a growing sector and that it is one that is showing no signs of slowing down any time soon.
So grab your favorite pint, and cheers.
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SEPTEMBER 2017 • SPOTLIGHT ON BUSINESS MAGAZINE
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