CRAFT TAKES ON BIG BEER
FOR YEARS so-called Big Beer largely ignored the craft segment of the industry, dismissing it as a passing fad. Not so anymore. Although AB InBev and MillerCoors still make up 72% of all US beer sales, craft has been rapidly growing. As a result, instead of simply ignoring the category as a niche market, Big Beer has gone on the attack and begun investing in, or outright purchasing, independent beer companies. But the craft segment is doing anything but acquiescing to this trend. As an example, Victory Brewing Company and Southern Tier Brewing recently joined forces under parent company Artisanal Brewing Ventures (ABV). The merger makes ABV one of the top 15 largest craft brewing companies in the US, with combined 2O15 shipments of over 25O,OOO barrels. Victory and Southern Tier aren’t alone in their concern that the spate of acquisitions signals a dangerous time for the independent brewing industry. “The industrial giants that worked for decades to marginalize our segment have found their tactics ineffective,” Greg Koch, CEO and co-founder of San Diego-based Stone Brewing Co., wrote recently in THE SAN DIEGO UNION-TRIBUNE. “So, Big Beer decided it’s time for an age-old strategy: Purchase. Control. Obfuscate.” Koch points to three recent purchases of Southern California-based craft brewers by major companies (Ballast Point to Constellation Brands, Saint Archer to MillerCoors, and Golden Road to Anheuser-Busch InBev) as evidence of this attempted takeover. While independent brewers bring about innovation and creativity, Koch argues in the hands of big companies, these brands’ missions become reliant on the bottom line. It’s not just here either; around the world, independent brewers are fighting against major beer companies’ attempts to take over the craft market.
Interestingly, although companies like AB InBev have millions of dollars to spend on craft beer acquisitions, and increasingly are doing just that, it appears as if customers are on Koch’s side of the issue. According to Bloomberg, six out of 1O drinkers believe a brewer’s independence is important when picking a craft beer. In other words, the big companies can buy craft brewers but they may not be able to sell “craft” beer to customers.
