A canary in a coal mine?
Jeff Alworth has been trying to figure out how the recession is influencing craft beer sales. My gut feeling is that he’s on to something.
Look, I’m not predicting that a bunch of craft breweries are going to go out of business, but stories like this one, “Craft brew sales on the rise as more offbeat beer flavors hit Superbowl coolers,” seem a little too good to be true.
When you look at all the things people aren’t buying these days it would hardly be surprising to see a luxury, affordable or not, like craft beer on the list.
Yes, I’ve seen the reports from many brewers who say they are still in expansion mode, who are having trouble keeping up with orders. Is this, in economist-speak, a leading indicator or a lagging indicator?
Guess we’ll find out soon enough.
Stan, a number of restaurateurs I’ve spoken with recently have seen domestic and import craft beer on the rise of late, especially in the larger format bottles. In some cases, at least, I suspect this comes as a result of simple economics: 750 ml of mediocre wine is $40, while 750 ml of exceptional beer is, in some instances, half that price.
http://www.mybeerpix.com/backstreet-brewing-turns-into-a-dark-alley/
Why not? It’s local if it’s craft, right? Transportation issues aside, folks are buying local. Doesn’t history show beer goes up in hard times as life gets simple,,,with forms of simple decadence like drinking a few great beers with friends?
I just went to a brand new brewpub that started in a brand new strip mall. No other tenents in the mall. Big corporate headquarters of many businesses across the street,,with empty parking lots. The new brewpub is busy, rockin’ out the great beers, and everybody’s happy there…..but the corporate headquarters look hurting…at least by the parking lot.
The results of the poll contained mixed findings. Just over half the respondents said the recession was altering their habits, but almost none had shifted away from craft beer … yet. A commenter, using Stephen’s logic, suggested that brewpubs may be the beneficiaries of upscale diners downscaling.
I think it’s too early to know yet what the results will be. Oregon’s a bit of a special case because craft beer has a lot deeper penetration into the regular market. I particularly worry about whether young people will stick with $10 sixers and $5 pints–if they don’t, there could be longer-term consequences.
Todd – What brewpub are you talking about?
Trinity Brewing in Colorado Springs. Jason Yester and Todd Walton seem pretty busy putting out some great beers. Great place. On top of all this economy talk, Jason is using the NM hops for a bunch of experimental beers,,and it’s being well recieved by the public. Progressive people in rough times…….brewers.