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10 Reasons Craft Beers Sales Are Hot

A post at Beerdata.org conjectures about why craft beer sales are up 11% so far this year.

Brendan Picha gives a lot of credit to imported beers, starting the with UK icon Samuel Smith. Yes it’s true that dam was opened in this order:

– Michael Jackson wrote the World Guide to Beer.

– Charles Finkel read the World Guide and called Jackson in London to praise the book. They quickly became friends, and soon Finkel’s company – Merchant du Vin – was importing beers Finkel had read about in the World Guide, including Samuel Smith. Imports were an inspiration for American brewers and an introduction to classic flavors for American drinkers.

Anyway, Picha then outlines what he summarizes this way: “This is a short snowball effect theory that I think may be responsible for craft’s current marketplace presence and demand.” Give it a read.

That got me thinking. The result is “10 Reasons Craft Beers Sales Are Hot.” (Disclaimer: This is a list is not the top 10 – and order is random after the first two).

1. These beers have more flavor.

2. Michael Jackson. The reasons listed above are just a start. The next list should be 10 Ways Michael Jackson Saved The World From Bad Beer. He’s shown here with Jeff Bagby and Tomme Arthur of Port Brewing/Lost Abbey.

Michael Jackson

3. Hops. OK, zealously defending hops has been known to get me in trouble. It’s just that innovative use of hops helped set American craft brewers apart from the start. (Before you send that e-mail, innovative use of hops does not mean using enough to take the chrome off the back of your pick-up truck. Firestone Walker innovative will do.)

4. Brewpubs. When craft sales were up 9% in 2005, brewpub sales grew less than 3%. That’s not the point – they put the roots in grassroots, because they are still the place many people are introduced to flavorful beer. Some of the most innovative (there’s that word again) beers, which literally inspired new styles, were and are first made in brewpubs.

5. Cult producers. When you look at the numbers, “accessible” beers that lots of people drink are driving growth. But extreme beers generate excitement.

6. The Internet. News travels quickly these days and the online communities are huge.

7. Importers. The sale of imports also remained strong in the first half of 2006, but IRI mostly measures beers sold in grocery stores – such at Heineken and Corona. I’m talking about the smaller importers, the ones who continue to find new and exciting beers (see Nos. 5 and 6).

8. What goes around comes around. A few months ago in England I had a wonderful 4% abv cask-conditioned bitter spiced with American Amarillo hops. Innovation is a two-way street. Some American brewer is going to taste a beer like that and say: “Hey, we can do that at home.”

9. Great retailers. Meaning bars/taverns/pubs as well as stores (both independents and the likes of Whole Foods – just think about when Costco starts to offer beer that rivals its range of wines).

10. Niches are good. In the mid-90s megabrewers invested in smaller breweries and experimented with specialty styles. Interest that waned then seems to be returning, but no matter how good of beer they decide to make there are some things they will never choose to do. That leaves an opportunity for those willing to do a little bit more.

Consider what Vinnie Cilurzo of Russian River Brewing has to say about his beers that may spend a year aging in wood before they are ready to sell: “These beers reflect a slower pace of life. Americans are so into ‘I want it all and I want it now.’ That’s why I don’t think many brewers will get into aging. They aren’t going to commit the time or the space.”

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7 Responses to 10 Reasons Craft Beers Sales Are Hot

  1. Kevin August 24, 2006 at 12:06 am #

    So no. 6 is the beer tasting sites? You are admitting that the democratic approach is more important than what you do at All About Beer?

    Kev in Boston

  2. Brendan Picha August 24, 2006 at 1:54 am #

    Stan,

    Some very good points. Michael Jackson was pre-Garrett Oliver and should be given due credit. If I were to note one influential attribute of both Michael and Garrett, I’d say Michael assisted in opening the craft revolution floodgates and Garrett pushed consumer beer education by pairing food and beer.

    Nice Write-up!

    Cheers,

    Brendan Picha
    Beerdata.org

  3. Stan Hieronymus August 24, 2006 at 12:01 pm #

    Hi Kev – Not sure I understand your question (or if you hate AABM or my tasting notes).

    First, I wouldn’t put my tasting notes in a list of 1 million reasons craft beer sales are hot.

    Second, I agree that the numbers generated at rating sites help drive sales, but I really don’t like assigning a number to a beer. That’s the topic for another discussion.

    Thanks – Stan

  4. jody harrison September 12, 2006 at 2:24 pm #

    Michael and Garrett … lets talk about the ones who got this thing rocking like Bert Grant.. with out him there wouldnt be much to talk about. but all i all you do have some good reasons..
    tnx jody

  5. Stan Hieronymus September 12, 2006 at 2:58 pm #

    The best way to do that is to point to the tribute the Beer Hunter penned upon learning that Bert Grant had died:

    How Bert Grant saved the world.

  6. Jody Harrison September 12, 2006 at 4:50 pm #

    I was just about to give that link, thanks for posting it.
    it is a very good article, makes me want to go out into the back
    yard and pull some Cascades off the Vine and inhale the aroma
    Cheers – Jody

Trackbacks/Pingbacks

  1. Hop Talk » Blog Archive » Top Ten Reasons Craft Beer sales are up - February 2, 2007

    […] over at Appelation Beer offers his 10 Reasons Craft Beers Sales Are Hot, giving some big props to that giant of the craft brewing movement: Michael […]

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