Bud and Miller Are Trying to Hijack Craft Beer—and It’s Totally Backfiring

[octoberlib]

—By Tom Philpott| Wed Jul. 30, 2014 6:00 AM EDT



For its part, Big Beer has responded to the declining popularity of its goods in two ways. The first is relentless cost cutting. When Belgian mega-brewer InBev bought US corporate beer giant Bud in 2008, it very quickly slashed 1,400 jobs, about 6 percent of its US workforce. And the laser-like focus on slashing costs has continued, as this aptly titled 2012 BusinessWeek piece, "The Plot to Destroy America's Beer," shows.

The second is to roll out phony craft beers—brands like ShockTop and Blue Moon—and buy up legit craft brewers like Chicago's Goose Island, which InBev did in 2011. Other ersatz "craft" beers include Leinenkugel, Killian's, Batch 19, and Third Shift. The strategy has been successful, to a point. Bloomberg reports that InBev has seen its Goose Island and Shock Top sales surge.

But there's a catch: These stealth Big Beer brands aren't "putting the microbrewers who started the movement out of business," Bloomberg reports. Rather, "the new labels are taking sales from already-troubled mass-market brands owned by the industry giants peddling these crafty brews." In other words, consumers aren't dropping Sierra Nevada or Dogfish Head and reaching for the Shocktop. Rather, ShockTop sales are being propped up by refugees from Bud Light and the like.

While Big Beer attempts to solve its problems with crafty marketing and yet more giantism, US craft brewers are trying out innovative business models. Big-name craft brewers Full Sail (Oregon), New Belgium (Colorado), and Harpoon (Boston) are all fully employee-owned. Here in Austin, Black Star Brewery and Pub is cooperatively owned by 3,000 community members and managed by a "workers assembly" as a "democratic self-managed workplace." It may sound like it should be a cluster, but the place is always packed, the service is brisk, the food is good, and the beer is excellent. And the employees proudly refuse tips, citing their living wage as the reason. Meanwhile, a forthcoming worker-owned project, 4thTap Brewing Co-op, is creating excitement among Austin beer nerds with its promise to "bring radical brewing to the forefront of the Texas craft beer scene."

http://www.motherjones.com/tom-philpott/2014/07/craft-beer-revival

[phantom power]

1. I don't see this as all bad

Blue Moon and Shock Top ain't no Dogfish or Stone, but on the other hand they're both more drinkable than a Bud or Miller.

The craft beer industry is having the desired effect -- it's forcing the Big Five to adapt.

[Warpy]

14. What I vaguely remember about commercial lagers is that they were universally weak and vile.

Narragansett in New England used to make a fairly good porter, a medium brown brew that was hoppy and dark and didn't taste like carbonated cat piddle.

In the mid 60s, the big brewers tried to emulate foreign beers with their own foreign sounding labels. I still really couldn't tell one from another.

My own homebrew tended to the brown and full bodied side, the alcohol boosted as far as I could manage, the stuff had a kick like a mule.

[phantom power]

17. It took 3 generations for American beer to recover from Prohibition

The "3.2% rule" popularized weak flavorless beer and it took a long time (and Jimmy Carter) before craft beer started to work its way back into our culture.

American prohibition was repealed by degrees. First, the Volstead Act defining "intoxicating liquors", was amended in April 1933 by the Cullen-Harrison Act to provide that beer with a strength of up to 3.2% alcohol was not "intoxicating", and thus not prohibited [24] (The "3.2 %" referred to is a measurement by weight and would be roughly equivalent to 4% if measured by volume, as is now common). Within 24 hours of legalization, as much as 1.5 million barrels of 3.2% ABW beer was sold, causing some to predict a "beer famine".[25] Soon thereafter, in December of the same year, the Twenty-first Amendment to the United States Constitution repealed prohibition in general, but left the production of alcoholic beverages heavily regulated by federal, state, and local authorities. Included in these regulations was the imposition of a three-tier distribution system, in which a manufacturer of alcoholic beverages must go through a wholesale distributor to sell its product, rather than selling to retailers directly.[26]

Although the Twenty-first Amendment allowed brewers to legally resume practicing their craft, many "dry" counties remained and many states failed to ratify altogether, which slowed the resurgence of the brewing industry. In addition, the many prohibitionists of the temperance movement were still quite vocal and were able to retain a large following despite the repealing of the eighteenth amendment. Before the American beer industry could attempt to re-establish itself, World War II began. This further inhibited the re-emergence of smaller breweries because much of the grain supply was rationed due to the war, forcing the breweries to use adjuncts such as corn and rice alongside the barley traditionally used in brewing. The prohibitionists saw a tantalizing opportunity to quell the efforts of the remaining breweries, insisting that the commercial brewing of beer squandered manpower, grain, fuel, and cargo space that should have gone towards the war effort overseas.[27] Brewers responded to these accusations by extolling the benefits that brewer's yeast have on human health, namely their high vitamin B content. It was argued that the increase in thiamine in the diets of the soldiers and factory workers would improve performance on the battlefield as well as in the factory and that this increase sufficiently justified the need for beer. The American government decided that the benefits of the vitamin B in brewer's yeast, alongside the taxes coming in from beer sales, were enough to justify a request for fifteen percent of beer production for servicemen.[28]

...

From the time America entered the war in 1941 until it ended in 1945, the overall production of beer increased by over 40% despite the small number of active breweries.[27] This wartime growth allowed the large breweries such as Anheuser-Busch to dominate the American market for over fifty years. During this period they produced beers more noted for their uniformity than for any particular flavor. Beers such as those made by Anheuser-Busch and Coors Brewing Company followed a restricted pilsner style, with large-scale industrial processes and the use of low-cost ingredients like corn or ingredients such as rice that provided starch for alcohol production while contributing minimal flavor to the finished product. The dominance of the so-called "macrobrew" led to an international stereotype of "American beer" as poor in quality and flavor.[30][31]

http://en.wikipedia.org/wiki/Beer_in_the_United_States#Prohibition

[octoberlib]

20. I love stouts so your homebrew sounds right up my alley.

I recently tried a beer in the English Barleywine category. It was like drinking beer flavored whiskey. Talk about potent!

[octoberlib]

16. The 'Plot to Destroy America's Beer ' is probably a good plot.

I used to drink Blue Moon before some local breweries opened.

[phantom power]

19. seems like local craft breweries have been exploding in the last 5 years or so

They're popping up like mushrooms around the Phoenix metro area.

I approve.

[frylock]

22. was really impressed with Arizona Wilderness in Gilbert..

have you been there?

[phantom power]

31. Yeah, they are excellent

Their food menu is good too, if not large.

[Guy Whitey Corngood]

2. One of the birthday gifts from my girlfriend this year was

a tasting tour on our local brewery. Going next month.

[octoberlib]

10. That's a great gift! Have fun!

[MohRokTah]

3. Support your local mircobreweries and microdistilleries.

Yes, I buy beer brewed not 20 miles from me and rum distilled not 15 miles from me. Neither is a big company. Both provide outstanding products.

[CBGLuthier]

5. Coop used to be 2 blocks from my house, now that is a local brew

Alas, they outgrew that facility and moved to another part of town.

[octoberlib]

6. Couldn't agree more! I think we now have 7 breweries in the Charlotte area,

including my favorite, NoDa Brewing. Best beer I ever tasted. We also have a couple of awesome craft beer shops that sell brands from microbreweries all over the US.

[DAMANgoldberg]

38. Common Market

comes to mind...Fan of NoDa and Highland from Asheville personally.

[davidpdx]

26. I agree and in fact for me those are the only beers WORTH drinking

If I'm going to drink Bud or Coors I might as well drink my own piss. I love the Apricot Ale! Haven't had one yet, but will soon.

These beers are starting to attract an international market as well. They sell tons of microbrews in South Korea from the US and other places. The catch is you pay through the nose for it. A good bottle of beer (medium size) can run $5-6 about twice what it is here.

I'm headed back next week and contemplating whether I can find a way to take a bottle back with me in a plastic container wrapped really well in between some clothes. I really don't want my new clothes to have broken glass and beer in them!

Ps-Korean beer is just as bad as American beer. Not worth drinking at all.

[CBGLuthier]

4. We liked Leinenkugel. Found out it was bought by Coors and never drank it again.

I will never willingly put a penny in the Coors family pocket.

Shocktop and Blue moon I did try once at my daughter's and found them to be lousy ass weak ass beers that might as well have been Budweiser. It is possible she had gotten some of that shitty 3.2 crap that Oklahoma still sells but either way, blechh.

Tonight we are having Anchor and State Pen Porters. Have fallen in love with the porter style and mean to try them all eventually as we have had these before.

[octoberlib]

8. I'm partial to porters and stouts, too.

One of my favorite porters is Baltic Porter by Duck Rabbit Brewery.

[CBGLuthier]

12. Will have to look for it.

We have a local store that carries over 1,000 different beers.

A lot of brewers will not come into Oklahoma because the laws here are stupid, real beer (higher than 3.2) can not be sold cold and there are issues with the distribution system so some can be hard to get here. If you ever look at a bottle and it says Oklahoma+ that means it can not be sold cold in Oklahoma except for bars and who can afford to drink great beers in bars?

I found one recently I wanted to try called Funky Buddha but they have not yet made it out of Florida.

I think the State Pen is cold enough now so time for a pour. Since we have to start warm it is nice that Porters prefer a warmer temperature.

[HereSince1628]

7. I don't often drink beer, but when I do

I enjoy Spotted Cow, imo, the national beer of Wisconsin.

[MohRokTah]

9. Another kick and a big THANK YOU to JAmes Earl Carter

Jimmy is the man singlehandedly responsible for the craft beer boom.

[Initech]

11. You can't fool us, InBev.

We beer drinkers know mass produced swill when we see it! You can't just slap a fancy label on your brews and call it craft beer, no no no.

[Coventina]

13. Not a beer drinker myself, but my husband is. He HATES "Bud, Coors, Miller".

His latest kick is Trappist beers.

He's especially fond of the new Trappist American beer:

http://spencerbrewery.com/

Support your American Brewing Brothers!!

[octoberlib]

24. Thanks for the link! I'll have to try Trappist.

[Fred Friendlier]

15. Craft beers are made with GMO grain

I read that this morning at dailykos.com where the "scientist" goons are busy trying to suppress the people's right to know what is in their food.

[SunSeeker]

18. Another reason for me to only drink Spaten Oktoberfest.

[frylock]

21. i very rarely drink anything that's brewed outside of San Diego..

and why would I? from where I sit in my office, I can be at any number of micro/macros in a matter of minutes. Ballast Point is a mile from here, and Green Flash is maybe 10 minutes away. There's at least four more in between that I'm aware of. I just laugh when someone brings that Goose Island or Red Hook crap to a party.

[snort]

23. Oh I am so glad I live in Portland.

The great beer here seems limitless, as does my thirst.

[musiclawyer]

25. What's the best beer in Portland ?

Serious question. Going there next week. I am partial to fruity, not too heavy

[SheilaT]

27. I want to know also.

I'm going to Portland the middle of next month to visit my son and I'm hoping to spend much of my time there happily inebriated on the local beers.

[octoberlib]

28. I'm not from Portland but found this.

Apple Ale | Hopworks Urban Brewery, Portland

This tart, cidery refresher made as a blend of beer and pressed apples was a hit at last year’s Portland Fruit Beer Fest—and quickly ascended to the full-time lineup. 5.8% ABV

Cascade Apricot | Cascade Barrel House, Portland

Bright and hazy orange with a zingy, lemony tartness up front, this Belgian-style ale flows with waves of delicious, ripe apricot flavor. 8.5% ABV

Sweet Heat | Burnside Brewing Co, Portland

Lesser chile beers crash the palate party and leave. But Burnside’s is brewed with apricot purée and Scotch bonnet peppers, which supply a lingering, welcome heat. 4.9% ABV
http://www.portlandmonthlymag.com/bars-and-nightlife/beer/oregon-beer-guide-2013/articles/50-best-oregon-beers-july-2013/

[Trajan]

30. Ruby Ale is a raspberry ale brewed by McMenamins

It is quite popular ...

For the record; Portland International Beerfest (PIB) Is scheduled for August 8 through 10 ... look it up ...

Beervana lives ....

[flying rabbit]

37. Not the best beer per se,

but a killer fruity beer is "Purple Haze" at Mcmenamin's. In fact just going to a Mcmenamin's is pretty cool. They have a damn good ruby red ale and a fine stout as well.
http://www.mcmenamins.com/

[AngryAmish]

29. I am a long par 5 from 2 microbreweries, with a third opening this fall.

Join the craft beer revolution. Less peeing, more flavor.

[EEO]

32. Scotch is where it is at. Single malt, especially (Highland).

[d_r]

33. with that "here in Austin" line

he should remember what Miller did to Celis. That was the beginning of this, when Miller bought out Celis so that they would have their own craft line. That was a freaking disaster that ended up leaving the world a little more empty. Or at least my refrigerator. At least inbev kept making hoegarrden when they bought him out there.

http://en.wikipedia.org/wiki/Celis

[WcoastO]

34. I live in Eugene......

and we have several great micro breweries and there is consistent quality and variety....plus Oregon has breweries all over the place, so finding excellent beer is an easy and tasty "task".

[TheKentuckian]

35. Good...more beer closer to decent and less dominance of the watery swill.

It is nice to hit the corner store cooler and come out with something tolerable and making good ever more likely to be found in more places.

Once there is a little variety, it usually keeps opening up.

[DemocraticWing]

36. Goose Island is pretty good beer, but Blue Moon/Shock Top suck.

I like craft beer, but I also think Bud and Miller have their roles. Some people don't want to explore different tastes in beer, and that's fine. I'm different, but I also know that when I'm low on money I certainly enjoy a six-pack of Miller Lite.

Budweiser, Miller, and PBR are Union-made beers as well. So if you're gonna buy cheap domestic, do that. Just don't buy anything made by Coors.

[Mike Daniels]

39. At least Goose Island was a legit craft-brew company * before they were purchased

I can't say I've found any real difference in the quality since InBev took them over. That said, I usually stick to their smaller batch higher ABV % beers versus anything that would be a "session" style.

* as opposed to Blue Moon/Shock Top etc.

[Zorra]

40. Great thread. Corporate beer is rat piss.

I am from the NW north of Yakima, where the best hops in the world are grown. Craft breweries started popping up in the early 80's in WA and Oregon, and after my first sip of real beer I never drank corporate rat piss again. Support. your local progressive owned local brewery!