Today I would like to have my first non-review post. The focus: why has the craft beer industry taken off in the last 30 years, and what do I think is the draw vs. wine or spirits?
As Sam Calagione of Dogfish likes to say, back in 1985 there were only a handful of craft breweries. Today there are thousands. Yet total craft beer sales only account for 5% of total beer sales. Why is this?
An easy answer is price. I will focus on this idea for the whole post, and write about some other reasons at a later date.
Granted my view of beer prices is warped, but for many, it's better to pay $7.99 for a six-pack of Coors Light than pay $12-$15 for a six pack of Stone IPA. For college kids buying 30 racks, the answer is even easier. But this delves into the reason for drinking beer in general, which we will cover later.
How do we change this feeling about pricing of craft beers? If you were at a bar, wouldn't you rather pay $6 or $7 for a nice, high-end craft beer than pay $5 for that same Coors Light? Seems like a no-brainer to me. Yet when you are at the store, what is it that makes you go for that random six pack of craft ales and lagers, even though you will pay a bit more?
This brings me to a scale that I personally created, and have discussed with other craft beer-lovers. It is a five-layered scale, and represents the habits of beer drinkers in the country. Granted I do not have any scientific data to back it up, but comes from my experiences and observations. It can be identified in the shape of a pyramid.
The first level is the base of the pyramid, and almost everyone started in this level. It represents those who buy only the cheapest beers available, either because they have a certain income level or just want to drink for the alcohol. It is much more economic for a family BBQ, holiday party, or frat party to buy the cheapest beer available. This level also contains the youngest drinkers. Those college-aged kids (and sadly many high schoolers) purchase this in order to binge drink, and do not buy alcohol for the taste, or to complement various foods. Unfortunately, many people’s perception of beer is marred by this first level, and thus, never progress to the next step. Example beers for level one are Natural Light, Bud Light, Busch Light, Keystone, Miller Light, and Pabst.
Level two usually begins somewhere between turning 21 and completing college. When you turn 21, all of a sudden you are no longer at the mercy of anyone purchasing beer. The liquor store becomes a realm of possibilities. However, you are still somewhat constrained financially. You begin exploring beers like Blue Moon, Shock Top, Stella Artois, and Guinness. Though these are beers from mega breweries, they still taste significantly better than those from level one. Many people make it up to level 2, and there is definitely some fluctuating between both lower levels.
Level three is the beginning of the craft beer level. A moderate amount of level 2 drinkers advance to level three (but very few to level 4 and 5). Though they have enjoyed sampling beers that aren’t light, watery pilsners, there is still something missing. This is where the floodgates begin to open. Typically, local craft beers are the first thing to try. Using Boston as an example (and myself), I began experimenting with Sam Adams, Harpoon, Cisco and others. The wide variety of tastes, and the overall desire to find that next great and different taste burned in me. I made it a mission to not rebuy beers, and to try as many different things as I could. But there are more beers besides my local ones right?
This brings us to the penultimate level, level 4: the craft beer lover. A craft beer lover enjoys sampling brews from around the country, and the world. They are in-tune with many of the regional varieties, but more on a mega-scale. They typically know about the flagship offerings from breweries like Stone, Founders, and Dogfishhead, and are excited to find the beers on tap at their local watering hole, or at a local beer store. They may occasionally buy a seasonal variety or a bomber, but do not possess the knowledge, or drive, to expand to the limit-pushing beers. Those who do want to do that, fall into level 5.
Level five is the craft beer fanatic. I proudly admit that I fall into this category. A craft beer fanatic tries anything that they can get their hands on, and will stay in touch in the beer community about new product offerings. Brewery visits are like pilgrimages, and participation in blogs and forums are commonplace. There is a deep knowledge of regional craft breweries, and an effort is made to find hard-to-get, and highly rated beers. Many fanatics also begin brewing their own beer (I plan on starting this summer), and often participate in bottle shares and samplings.
This five level system is all encompassing of beer drinkers. It isn’t a perfectly proportional pyramid, but serves as a good guide as to how the craft beer world works, and why only 5% of beer sales are craft beers.
Finally, I want to spend a quick minute on beer vs. wine/spirits. In my opinion, beer as a hobby is much less expensive that the other two. A decent bottle of wine costs around $20-25, equating to about $4-5 per glass. A higher end wine will run way higher that this. Yet to get the same quality of the product in beer, you usually will pay less than $10/bottle. Not only that, but a 22 oz bottle at 9% alcohol, will equate to around 3.5-4 alcoholic drinks, which is around $2-3 per “drink.” Not only that, but you did not have to shell out $25, and if you do not like the wine, you are stuck! With beer, if you buy a random 6 pack, a $3 beer that is a miss for you will not break the bank, and will not make you feel like you wasted money since there aren’t still 4 glasses left. Regarding spirits, the price per glass is often less, but the initial financial investment is much greater. I would rather try 20 different beers for $40, than have 20 glasses of Makers Mark for the same price.
I truly believe that if more people followed my logic, there would be many more beer drinkers out there. We have seen a booming trend in craft beer bars, and liquor stores carry more varieties of craft beer by the day. We are increasing the volume of people in levels 2-5, which is an exciting thing. The pyramid may never turn into a square, but it is a good sign that boundaries are evolving and that the top portion is widening. Viva craft beer!
Cheers!
Scott
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