McKay's Beer Musings: Why Craft Beer?

In the past decade, the awareness of and appreciation for craft and specialty imported beer in America has increased exponentially. Since 2003, craft beer has outpaced all other adult beverage categories in annual growth according to reports by the Brewers Association. Through my experience in beer sales and education at wholesalers around the country, I have observed some general trends, which I believe will continue to fuel the growth of craft and specialty beer for decades to come.

Why craft beer? For my fellow beer geeks, this question is a loaded one, but it's one that we at GreatBrewers.com work tirelessly to answer. Perhaps the best way to address it is to consider the "higher quality, greater variety" paradigm that has spurred the demand for more common examples of "craft" commodities.

When a restaurant creates its menu, the goal is simply to provide a variety of items to please their customers' cravings. If choosing meat dishes, for example, it might seem silly to offer five options of pork chops which are all cooked the same way with identical ingredients. It might seem even more peculiar to only serve hot dogs from a dozen different hot dog producers. Depending on the clientele of a restaurant, the chef will generally offer meat at incremental price points, ranging from a simple hamburger up to a prime cut of filet mignon. Regardless of the customer base, the general rule is to offer a variety of different meats, ranging from chicken to beef to pork.

Similarly, markets tend to offer varieties of certain foods at various price levels. A pre-sliced loaf of sandwich bread might be offered for a dollar, but they also sell freshly baked breads of all shapes, sizes, and styles. Individually wrapped processed cheese is typically one offering, but they will also sell blocks of hand made cheeses of different styles and at higher price points.

Behind the bar, a very similar approach is usually taken with wine and liquor selections. Most customers could order a cocktail with a well-liquor, a middle-tier liquor, and a top-shelf liquor. With the trend toward higher quality, the top-shelf liquors are frequently the biggest sellers, and they bring a sense of class to an establishment. Additionally, dozens of varieties of liquor are commonly available. Wine selections often cover twenty or more styles at price points from $15 a bottle to hundreds of dollars per bottle.

So why do these stores, restaurants and bars offer foods, liquors, or wines that cost more to bring in? The answer is two fold. First, the benefit of offering a wide variety is that it achieves the initial goal of satisfying the customer's demands. And second, Americans have a growing affinity for quality, and they are often willing to spend a little more to get a superior product. The added advantage to the bar, restaurant, or market of offering more costly products is that they earn a greater profit per serving.

The fascinating stories behind these craft and specialty breweries, their incredible diversity of styles, and their impeccable quality have made craft beer the fastest growing sector of the adult beverage industry. And this growth is not limited by the ultimate consumers of these beers. At beer dinners, beer festivals, and sampling events, we constantly get questions from first-time craft beer drinkers about where these products can be purchased (enter the Beer Finder) and why they are not more readily available. The unsatisfied demand for these amazing beers exists everywhere, and it is growing at an accelerating rate. If bars, restaurants, and stores work to develop and promote their own craft and specialty beer offerings, they won't just appease the hordes of existing craft beer drinkers, but they will help enlighten undiscovered craft beer lovers to an exciting new world.

To fancy restaurants who believe you are not selling enough beer, consider that you just might not be selling the right beers. To pubs with twenty draft lines and twenty light lagers on tap, consider that you will sell just as much light lager through five of your tap lines and you will bring in a higher profit margin on the rest if you diversify your list. To markets that worry that they don't have sufficient shelf space for craft or specialty beer, consider that you will make more on a single corked and caged bottle of Belgian ale than you will on three six-packs of cheap beer. So the question to ask is not "Why Craft," but rather "Why Not Craft?"

Finally, to those bars, restaurants, and markets that have discovered and embraced craft beer, please make a commitment to spread the gospel of great beer, and to always be willing to learn more. Even the most accomplished of beer scholars will attest that there is a limitless amount of information on the subject. If there is ever anything that we can do to help educate yourself, your staff, or your customers on the craft beers in our portfolio, please let us know.

So, what do you think? Will America’s appreciation for greater quality and variety recede with the economy, or will people continue to see great value in craft and specialty beer? Will the shift of fine wine and spirits drinkers to the more "obtainable" luxury – craft beer – outpace the shift of craft beer drinkers to cheaper options? And what role does the appreciation for locally produced products play in all this? Please share your thoughts!