Craft Beer Research Paper
The act of brewing beer has been considered a craft since the ancient times, in today’s society craft beer is defined as a beer made in a traditional or non-mechanized way by a small brewery. There is currently hundreds of different types of beers and new beers being crafted each day. Craft beer and Microbreweries have taken many cities by storm lately including Kansas City and the rest of the United States. Craft beers popularity has increased dramatically in the last few years. While Microbreweries overall production of beer is far less than that of the macro brew beers, their popularity continues to grow larger each year. The craft beer community is made up of many different types of people. These people include home craft beer makers, taste testers, Brewery owners, Brewpub owners, and simply people who enjoy trying new beers. No matter the status that you hold in the community everyone shares one common interest, the love for craft beer.
Craft beer has been around since the ancient times and is seen throughout history. Centuries ago beer was the daily drink of the people both because plain water was often polluted and how inexpensive it was to make. Monks are widely …show more content…
considered the first to craft beer and did so for many reasons, monks meals were typically sparing especially during fasting periods but the consumption of liquid would not break the fast. Without the widespread hotel chains during these time monasteries would serve as inns for travelers and the monks would serve the beer they brewed to the travelers. This started the beginning of the trade of beer and it quickly began to spread quickly. Monks were even allowed to open their own pubs called Klosterchenken where they could sell their ale. The monks would use the name of the monastery’s patron saint to build loyalty and till this day many beers still bear the name of a saint. (Meltzer) Jumping forward in history craft beer and microbreweries were the main source of beer around the world and in the united states before a major shift was about to occur around the 1970’s. The traditional craft beer that immigrants had brought over was starting to die off and only light lagers were being seen on shelves and in bars. This was mainly because the effective marketing campaigns that switched the preference of the public to a low calorie light lager instead of the heavy full flavor craft beer that was being made before. By the end of the decade the brewing community had consolidated into only 44 brewing companies and experts during this time predicted that this number would shrink even smaller to about 5 major breweries, for the most part these experts were correct. At the same time as the American beer landscape was shrinking a new community started to emerge, the home brewing culture. The home brewing hobby started to spread fast because this was the only way a person in the United States could enjoy and taste the beer traditions and styles of other countries. The home brewing culture is what gave birth to what we consider the craft beer community today. According to Brewers Association in 1873 the United States had an estimate of 4,131 breweries this number fell to 0 between 1920 and 1932 due to the prohibition. In 2015 the amount of breweries in the united states finally reached the number we had back in 1873 and that number continues to grow each year. This is largely because of the craft beer industry and the amount of Microbreweries that are opening.
Even with craft beers becoming more and more popular domestic beers still control the beer market due to the fact that they made up about 70% of the beer business in 2016. Macro breweries produce and sell so many more beers than micro breweries but at most stores that sell beer, craft beers still average about 50% of the beers on the shelves. While domestic beers have more ability to control the beer market and are more well known, craft beers are typically favored by taste by consumers, the micro breweries put more care into making the beer, and almost every brewery makes a wide variety of beers. A major disadvantage of being a micro brewery is that the domestic beers have a much better ability to control the beer market because of there overall income. The justice department has alleged that Anheuser-Busch has caused distributors to drop smaller brands and micro brews in favor of its product. Due to the fact that Macro beers (domestic beers) are about 70% of the beer market, they get to control the beer market. There were accusations a few years back that Anheuser Busch threatened to stop distributing their beer to stores unless they stopped selling micro brews. Of course Anheuser Busch denied the entire thing, but an investigation did take place on the matter. This is a huge disadvantage for craft beer and microbreweries everywhere because if the larger macro breweries did have this control it could be devastating to the sale of craft beer.
Another disadvantage for microbreweries is how well each brewery is known. Everyone has heard of the big macro breweries such as Budweiser, Anheuser Busch, Miller, and Coors. There are many more microbrews out there and all of them are pretty well known. It is a lot harder for a craft beer company or Microbrewery to be well known outside of there city or state when they are in competition with hundreds of others as well as domestic beers. Domestic beer companies are able to spend millions in advertising and promotion while Microbreweries are forced to use smaller scale advertisement like newsletters and social media. According to a website called Statista Budweiser spent close to 530 Million dollars on advertisement alone in 2016 while the closest microbrewery spent 2.2 million dollars on advertisement. This statistic shows the major difference in spending between the two types of breweries in America and poses a big threat to microbreweries. During the Super Bowl in 2016 Budweiser released a commercial attacking craft beer and craft beer drinkers by displaying images of people drinking fruit beer and displaying craft beer is not made for hard workers. This symbolizes how the domestic beer companies feel threatened against craft beer and microbreweries and can use advertising to attempt to control the beer marking.
That’s not the only advantage domestic beers have within in the market, since companies like Anheuser Busch and Coors brew beers on such a large scale they are able to supply themselves with the ingredients and supplies needed to brew their own beer. In return this allows them to sell their products at a much lower price then Microbreweries. An example of this would be how you can purchase 30 domestic beers for about the same price of 6 craft beers. Microbreweries face many difficulties unlike large scale Macro breweries who are constantly competing which each other Microbreweries try and work together or collaborate in order to compete with domestic beer sales. As I just discussed Microbreweries deal with a disadvantage when it comes to getting ingredients and this effects the cost of their beers dramatically compared to domestic beer cost. A solution that microbreweries have adopted is that larger Microbreweries buy supplies in wholesale and distribute them to smaller microbreweries in the area at the same cost.
Another major issue that the craft beer and microbrewery community faces is large scale microbreweries trying to monopolize the beer market. InBev in 2008 purchased Anhiser Bush and since then has focused the company on trying to become a global beer company owning different breweries across the world. In 2016 they purchased four major craft beer companies in the United States and in the future plan to continue growing the company around craft beers. Devin Leonard of Bloomberg Business describes InBev in an article, he states “Nobody is investing in the craft breweries as aggressively as AB InBev. Some craft brewers say the company wants to flood the market with its own quirky beers and confuse consumers who are looking for alternatives to Budweiser. Others say the company wants to do more than just befuddle beer fans—it wants to drive its craft rivals out of business”. This is a huge concern for craft breweries because there is no sign that inBev will slow down with trying to control and monopolize the market.
In the next 15 years I see the craft beer community continuing to grow and more Microbreweries beginning to opening but I also believe that history will repeat it’s self and just like in the 70’s the beer market will be controlled by a few major companies. Since 2010 the amount of Microbreweries in Missouri has doubles and that number is only going to continue to grow as the microbrewery and craft beer community gets larger but companies like AB Inbev will attempt to buy out the market. In July 2016 AB inBev which is owned by Anhiser Bush struck a deal worth 101 billion dollars with SAB Miller which is owned by the Miller Company making it the largest ever Beer company in the world. (McLaughlin) In the next 15 years its hard to imagine a company like this will not try and continue to purchase microbreweries and craft beer in attempt to take complete control of the market. The community needs to try and avoid this in order to keep the roots and history of craft beer alive.
I was able to sit down with the owner of KC Bier Company in Kansas City, Missouri and discuss his opinion on the craft beer community and how he started in the community. Similar to most Microbrewery owners Kansas City Bier Company started with home brewing. Steve Holle the founder of Kansas City Bier Company discovered his love for craft beer and subsifically Germany style beers while studying abroad in Germany for college. He took his love for beer and brought back his knowledge to his home town in Kansas City. His beers were such a huge hit with friends and family that he decided to try and make the jump to selling his beer to the public. Kansas City Bier Co started as a brew pub located in Kansas City, Missouri and now is bottling beer throughout the metro area. When asked what his long term goals for the Microbrewery Mr. Holle replied “I’d like for the company to grow and have my passion for Germany style biers grow through out the United States but that all takes time, for now my focus is giving Kansas City the best bier I can with a friendly environment at the Brew Pub”. This quote is a great example of what you’re going to find within the craft beer community. Most Microbreweries you will discover are similar to Kansas City Bier Company in the sense that the community is very open to all types of people. Weather you know a ton about beer or absolutely nothing at all the community is open to helping educating and welcome people to the craft beer community.
In conclusion, the craft beer community faces many challenges when compared to large scale macro breweries but the future has never looked brighter.
Community is defined as “a feeling of fellowship with others, as a result of sharing common attitudes, interests, and goals.” This is a great example of what the craft beer community is made up of. Throughout history to the present day craft beer has always brought people together within a community to celebrate many different things. The craft beer community is made up of many different types of people. These people include home craft beer makers, taste testers, Brewery owners, Brewpub owners, and simply people who enjoy trying new beers. No matter the status that you hold in the community everyone shares one common interest, the love for craft
beer.
Craft beer has been around since the ancient times and is seen throughout history. Centuries ago beer was the daily drink of the people both because plain water was often polluted and how inexpensive it was to make. Monks are widely …show more content…
considered the first to craft beer and did so for many reasons, monks meals were typically sparing especially during fasting periods but the consumption of liquid would not break the fast. Without the widespread hotel chains during these time monasteries would serve as inns for travelers and the monks would serve the beer they brewed to the travelers. This started the beginning of the trade of beer and it quickly began to spread quickly. Monks were even allowed to open their own pubs called Klosterchenken where they could sell their ale. The monks would use the name of the monastery’s patron saint to build loyalty and till this day many beers still bear the name of a saint. (Meltzer) Jumping forward in history craft beer and microbreweries were the main source of beer around the world and in the united states before a major shift was about to occur around the 1970’s. The traditional craft beer that immigrants had brought over was starting to die off and only light lagers were being seen on shelves and in bars. This was mainly because the effective marketing campaigns that switched the preference of the public to a low calorie light lager instead of the heavy full flavor craft beer that was being made before. By the end of the decade the brewing community had consolidated into only 44 brewing companies and experts during this time predicted that this number would shrink even smaller to about 5 major breweries, for the most part these experts were correct. At the same time as the American beer landscape was shrinking a new community started to emerge, the home brewing culture. The home brewing hobby started to spread fast because this was the only way a person in the United States could enjoy and taste the beer traditions and styles of other countries. The home brewing culture is what gave birth to what we consider the craft beer community today. According to Brewers Association in 1873 the United States had an estimate of 4,131 breweries this number fell to 0 between 1920 and 1932 due to the prohibition. In 2015 the amount of breweries in the united states finally reached the number we had back in 1873 and that number continues to grow each year. This is largely because of the craft beer industry and the amount of Microbreweries that are opening.
Even with craft beers becoming more and more popular domestic beers still control the beer market due to the fact that they made up about 70% of the beer business in 2016. Macro breweries produce and sell so many more beers than micro breweries but at most stores that sell beer, craft beers still average about 50% of the beers on the shelves. While domestic beers have more ability to control the beer market and are more well known, craft beers are typically favored by taste by consumers, the micro breweries put more care into making the beer, and almost every brewery makes a wide variety of beers. A major disadvantage of being a micro brewery is that the domestic beers have a much better ability to control the beer market because of there overall income. The justice department has alleged that Anheuser-Busch has caused distributors to drop smaller brands and micro brews in favor of its product. Due to the fact that Macro beers (domestic beers) are about 70% of the beer market, they get to control the beer market. There were accusations a few years back that Anheuser Busch threatened to stop distributing their beer to stores unless they stopped selling micro brews. Of course Anheuser Busch denied the entire thing, but an investigation did take place on the matter. This is a huge disadvantage for craft beer and microbreweries everywhere because if the larger macro breweries did have this control it could be devastating to the sale of craft beer.
Another disadvantage for microbreweries is how well each brewery is known. Everyone has heard of the big macro breweries such as Budweiser, Anheuser Busch, Miller, and Coors. There are many more microbrews out there and all of them are pretty well known. It is a lot harder for a craft beer company or Microbrewery to be well known outside of there city or state when they are in competition with hundreds of others as well as domestic beers. Domestic beer companies are able to spend millions in advertising and promotion while Microbreweries are forced to use smaller scale advertisement like newsletters and social media. According to a website called Statista Budweiser spent close to 530 Million dollars on advertisement alone in 2016 while the closest microbrewery spent 2.2 million dollars on advertisement. This statistic shows the major difference in spending between the two types of breweries in America and poses a big threat to microbreweries. During the Super Bowl in 2016 Budweiser released a commercial attacking craft beer and craft beer drinkers by displaying images of people drinking fruit beer and displaying craft beer is not made for hard workers. This symbolizes how the domestic beer companies feel threatened against craft beer and microbreweries and can use advertising to attempt to control the beer marking.
That’s not the only advantage domestic beers have within in the market, since companies like Anheuser Busch and Coors brew beers on such a large scale they are able to supply themselves with the ingredients and supplies needed to brew their own beer. In return this allows them to sell their products at a much lower price then Microbreweries. An example of this would be how you can purchase 30 domestic beers for about the same price of 6 craft beers. Microbreweries face many difficulties unlike large scale Macro breweries who are constantly competing which each other Microbreweries try and work together or collaborate in order to compete with domestic beer sales. As I just discussed Microbreweries deal with a disadvantage when it comes to getting ingredients and this effects the cost of their beers dramatically compared to domestic beer cost. A solution that microbreweries have adopted is that larger Microbreweries buy supplies in wholesale and distribute them to smaller microbreweries in the area at the same cost.
Another major issue that the craft beer and microbrewery community faces is large scale microbreweries trying to monopolize the beer market. InBev in 2008 purchased Anhiser Bush and since then has focused the company on trying to become a global beer company owning different breweries across the world. In 2016 they purchased four major craft beer companies in the United States and in the future plan to continue growing the company around craft beers. Devin Leonard of Bloomberg Business describes InBev in an article, he states “Nobody is investing in the craft breweries as aggressively as AB InBev. Some craft brewers say the company wants to flood the market with its own quirky beers and confuse consumers who are looking for alternatives to Budweiser. Others say the company wants to do more than just befuddle beer fans—it wants to drive its craft rivals out of business”. This is a huge concern for craft breweries because there is no sign that inBev will slow down with trying to control and monopolize the market.
In the next 15 years I see the craft beer community continuing to grow and more Microbreweries beginning to opening but I also believe that history will repeat it’s self and just like in the 70’s the beer market will be controlled by a few major companies. Since 2010 the amount of Microbreweries in Missouri has doubles and that number is only going to continue to grow as the microbrewery and craft beer community gets larger but companies like AB Inbev will attempt to buy out the market. In July 2016 AB inBev which is owned by Anhiser Bush struck a deal worth 101 billion dollars with SAB Miller which is owned by the Miller Company making it the largest ever Beer company in the world. (McLaughlin) In the next 15 years its hard to imagine a company like this will not try and continue to purchase microbreweries and craft beer in attempt to take complete control of the market. The community needs to try and avoid this in order to keep the roots and history of craft beer alive.
I was able to sit down with the owner of KC Bier Company in Kansas City, Missouri and discuss his opinion on the craft beer community and how he started in the community. Similar to most Microbrewery owners Kansas City Bier Company started with home brewing. Steve Holle the founder of Kansas City Bier Company discovered his love for craft beer and subsifically Germany style beers while studying abroad in Germany for college. He took his love for beer and brought back his knowledge to his home town in Kansas City. His beers were such a huge hit with friends and family that he decided to try and make the jump to selling his beer to the public. Kansas City Bier Co started as a brew pub located in Kansas City, Missouri and now is bottling beer throughout the metro area. When asked what his long term goals for the Microbrewery Mr. Holle replied “I’d like for the company to grow and have my passion for Germany style biers grow through out the United States but that all takes time, for now my focus is giving Kansas City the best bier I can with a friendly environment at the Brew Pub”. This quote is a great example of what you’re going to find within the craft beer community. Most Microbreweries you will discover are similar to Kansas City Bier Company in the sense that the community is very open to all types of people. Weather you know a ton about beer or absolutely nothing at all the community is open to helping educating and welcome people to the craft beer community.
In conclusion, the craft beer community faces many challenges when compared to large scale macro breweries but the future has never looked brighter.
Community is defined as “a feeling of fellowship with others, as a result of sharing common attitudes, interests, and goals.” This is a great example of what the craft beer community is made up of. Throughout history to the present day craft beer has always brought people together within a community to celebrate many different things. The craft beer community is made up of many different types of people. These people include home craft beer makers, taste testers, Brewery owners, Brewpub owners, and simply people who enjoy trying new beers. No matter the status that you hold in the community everyone shares one common interest, the love for craft
beer.