Art of Beer – Addendum: What’s All the Brew Ha Ha Over Beer Companies Buying Each Other Out??!!

The picture above is what a lot of Americans think that any activity related to beer is all about. Getting rowdy with your frat brothers at parties and smelling like stale beer. Sitting around watching sports and seeing who can belch the loudest and  longest, or seeing who pukes first from the results of a beer chugging game is one of the first pictures that comes to mind whenever the word “beer” is spoken aloud.

And to be fair, since the repeal of prohibition right up until the last decade or so that would not be an inaccurate depiction of most beer related activities in the U.S. Thanks mostly to marketing campaigns of a lot of the major brewing companies in America (Anheuser-Busch, Coors, Miller Brewing, Pabst, etc.) the light American Lager has become associated not only with those activities but others as well, most of which are usually pandering to the lesser qualities of mankind. These include lust, competitiveness, laziness, and a lack of propriety.

And that is the exact opposite of how a majority of the rest of the world views beer. For many other countries it is a beverage that can have as much prestige as some of the finest wines and liquors available. Especially if it is carefully and skillfully CRAFTED!

In America, thanks to industrialization, beer has had done to it what many other products have had done. Make the most economically feasible product, mass produce it and use advertising to shove it down the consumers throat. And since so few companies survived the dark years of prohibition only those that were mass producing other products were capable of coming back from the brink to begin producing beer again. And in the American business model the more you can make for a cheaper price the better your profits are.

But a little secret was revealed to many of us over the years. Some of us have had the opportunities to visit Europe or Asia or the Middle East and taste beers and other styles or the same style but in it’s original form. We were awakened to the fact that what we have had limited to by the corporate conglomerates was in fact crap! And when we came back to America from other countries and went to try out old reliable American staples we realized the truth… “My God!! This is shitty beer!!”

Luckily, in the late seventies, then President Jimmy Carter signed a bill making it legal for home brewing to begin again. Whatever else you may have thought of him as a president, this was one act that everyone can agree on was a good one.

With that act, the home brewing craze and the craft beer movement began. And for about 20 years that is exactly what it was, a fad or a craze that someone wanted to try. But eventually enough people not only stuck with it, but became very good at it and tried to do what many other American Entrepreneurs had done before them and turn a beloved hobby into a business they could make a living at. Some of these entrepreneurs are still at it today, Anchor Brewing, Sierra Nevada, Samuel Adams, and many others who have seen the rise of a revolution in taste as well as quality in process.

These companies which started out small have grown into larger companies by maintaining quality products and consistently trying to expand their skills in different styles of beer. Something the larger brewers have forgotten how to do.

With this industrious rise in Craft Brewing, there resulted the inevitable loss of market share to the big brewer’s. And how did the big brewers react? Did they rethink their brewing techniques and think about investing in higher quality products using better ingredients? Did they think about expanding the styles of beers that they brewed and trying to draw back some of the market share they lost through honest competition? I’m sure they thought about it.

But that isn’t what they did. Instead they came up with a two step approach:

Step 1 – Buy out the competition. Buy out successful craft brewers, learn how to produce their products for less money, and reproduce their beer labels under your brand. This method has been the Grim Reaper of many venues of American industry. The problem with this is that is doesn’t work well. Quite often quality suffers and the customers you hoped to win back can tell and find a new brewer to follow.

This has not helped the big brewers gain any more craft beer fans, but it has helped them to gain in other ways. Recently the founder of Sam Adams Brewing publicly stated that over 90% of the beer made in the world is owned by two companies both European Conglomerates who own not only most of the breweries on every continent but also a lot of the distribution companies. AB-InBev and Heineken N.V. own companies in Europe, Asia, Africa, Australia, North and South America. Leaving only Antarctica as unclaimed territory.

Step 2 – Strangle their supply chain. If they won’t sell out to you then make it difficult or impossible for them to get the ingredients to make beer and even harder to get their beers to market.

These two conglomerates have repeatedly tried buying out hops and grain markets in efforts to stifle the supplies for others to make beers. And when that didn’t work they put a stranglehold on the distribution by buying out a lot of the distributing companies, or giving monetary incentives for their products to get top billing. These companies have been reading the robber-baron’s handbook and instead of creating new games just gave a wink-wink nudge-nudge to the concerned lawmakers who failed to stop them.

So to answer the question in the article title – the “Brew Ha Ha” over the beer companies buying the others out has nothing to do with the beers they originally made. And really not even with the beers being made buy those that have sold out to them. No matter what happens there will still be folks who like all of those beers and will want to purchase and consume them. We are after all creatures of habit.

The problem is that if the trend keeps going as it is, eventually new craft breweries will no longer be built. The ability to choose from over 5000 breweries and tens of thousands of different beers will disappear. Craft beer is going to be changing, whether we like it or not. Craft breweries will have get even more inventive with their “Think outside the box” strategy to continue to exist.

The good news is this:

  1. Thinking outside the box is what craft brewers do best.
  2. The Genie is already out of the bottle. Home brewing is alive and well and will continue to be so. Larger Craft production breweries may not continue any growth, but the little guys who just want to brew and share with the locals will always find a way to do so.

Papabear

 

The Art of Beer Pt 5 – Brewing (Home, Craft and Production)

December 5th, 1933, the date the 21st Amendment to the Constitution was enacted, which repealed the 18th Amendment, (also known as Prohibition); and October 14, 1978, when then President Jimmy Carter signed H.R 1337 into law, which eventually led to the newest advent of Home Brewing in the US; both of these dates are probably the most important dates in the 20th Century in relation to beer.

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The truth of the matter is that beer and brewing have been around much longer than any known laws (beer was developed as far back as 7000 years ago and the earliest recorded laws date back less than 5000 years.) Samples of beers, meads and wines can be found from many ancient cultures from many different parts of the world. To say that the Prohibition Act was not only one of worst ideas ever would be an understatement. It not only forced hundreds of thousands to become law breakers but it was one of biggest reasons for the rise of organized crime. And up until that point in American history brewing your own beer at home was not only an everyday occurrence it was a large portion of the source of beer consumed at that time. It wasn’t until the Industrial Revolution in the mid-1800s that production beer brewing started really growing.

So I am going to describe and compare the three main types of beer brewing, where they have similarities and differences and the pros and cons of each type. I have broken them down by the main factor of what currently defines them and that is by amount of beer brewed.

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Home Brewing is exactly what it sounds like, beer being brewed at home. Before America existed as a nation and for about 150 years after it was born, home brewing was the original method of brewing. And because it was done in the kitchen it was considered cooking, so most brewers in those days were women, not men. But then looking back through the history of many ancient cultures, brewing has always been primarily associated with women.

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In fact most of the ancient deities associated with beer brewing were goddesses:

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Siduri – Babylonian goddess of wine and beer

Siris – Mesopotamian goddess of beer

Ninkasi – Sumerian goddess of beer

Hathor – Egyptian goddess of brewing and enjoyment

Nepththys – Egyptian goddess of beer

Tenenet – Egyptian goddess of childbirth and beer

Dea Letis – Celtic goddess of waiter and beer

Nokhubulwane – Zulu goddess of rainbow, agriculture, rain and beer

These goddesses were also associated with agriculture, bread, water or childbirth depending on the culture, which means that the ancient world closely associated beer with life and good living.

As Benjamin Franklin said, “Beer is proof that God loves us!”

Today many people are getting back into home brewing as a hobby, including yours truly. Brewing beer at home means that batch sizes range anywhere from a gallon to 10 gallons being brewed at a time. And the 10 gallon size batch can be very difficult for some folks because now you’re having to handle liquids in containers weighing at least 100 pounds. Once you get out of the 10 gallon range then you need to invest in more commercial like equipment and you’re really stepping into the Craft Brewing category.

If you enjoy cooking then Home Brewing may be an option for you to try. You need the same discipline that cooking requires; measuring ingredients, prepping both your kitchen and your equipment, and a good sense of timing for when the product is ready’ and the patience to wait for the product to be ready for consuming. If you don’t have those skills then you may be better off finding a friend who does and drink their homebrew instead.

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While Home Brewing has been around for centuries, Craft brewing is a much more recent phenomenon and is really the next stage of evolution in the beer making industry after you graduate from being a hobbyist. A Craft Brewery is a business where much more experimentation is done on different varieties of beers, the goal being not to only create a good tasting product but to also create something unique using traditional ingredients and methods, something that the larger Production Breweries can’t or won’t do.

While most Craft Brewers started out as Home Brewers, they have now graduated from a hobbyist to an entrepreneur and need to keep in mind that they are running a business. They have to run a good business model and still maintain the higher quality of product than the large Production Breweries have. But if they do run the business well, they can often experiment more with varying styles of beer and ingredients.

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Production brewing exploded after the start of the industrial revolution. With the invention of new machines that could do the work of many men the production of beer became much cheaper. Before Prohibition there were over 4000 breweries in America. During prohinition that number became zero. And only a handful of those breweries were able to survive Prohibition by changing their products produced to something legal, like near beer, malts, syrups, or other non-alcoholic related products. After prohibition ended, those that survived started up brewing again but with a much more homogenized version of beer due to new laws governing beer. And in order for these breweries to start making profits quickly, they changed a lot of their ingredients from the traditional barley and malt, to a much cheaper ingredient list that now also included corn and rice starches.

Another reason for the rise of these mass-production beer companies was due to the abject consumerism of the 1950s, ‘60s. ‘70s, ‘80s & ‘90s in the United States. The rise of radio and then television brought commercialism to new highs. Marketing alone sold the American public on the need for a particular kind of beer. Miller “High Life” used the ideal of living the high life to appeal to its customers. Pabst Blue Ribbon Beer subliminally associated the blue ribbon with being a prize winning beer, where in reality the name came from the original packaging of the beer which had a silk blue ribbon tied around the neck of the bottle. The Schlitz Malt Liquor Bull, Coors Silver Bullet, and Miller Lite “tastes great vs less filling” commercials all used various forms of comedy and flashy props to sell their products.

Which brings us to the “King” of commercialism, Anheuser-Busch. Adolphus Busch and Carl Conrad developed their lager style after a Bohemian Beer from the town of Budweis in Bohemia. The beer they copied was founded by the then King Ottokar II. So they used a “Beer of Kings” and named it after the town and called it the “King of Beers”, a marketing scheme that has lasted for over 100 years. Then of course there are the other marketing ploys, like the Budweiser Clydesdales and the sponsorship of sports, which all of the big beer companies have participated in.

The production beer makers are all about the business. It is much more profitable to make an inferior beer, mass produce it and sell it to the masses with marketing schemes than it is to make a good product. And that is what big business has become in the world today.

Thank goodness for Home and Craft Brewing’s rise in the 80s. Without them, a lot of Americans would never have learned what good beer is actually supposed to taste like.

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Papabear