Ale Street News Online

Craft brewers will hope that history does not repeat itself. This year’s Boston conference also comes on the crest of a very productive period of growth for the now much better established industry. And while growth dropped below 10 percent in 2008, after three solid years of double-digit gains, such a decline was evidently quite palatable in the face of rising prices and global economic crisis. And, so far the trends appear to be holding for 2009 in a depressed economy.

Thus the positive outlook of recent conferences was still very much in evidence in Boston. However, there were plenty of warnings about the current economic situation. Brewers Association president Charlie Papazian said that “Beer is in no way recession proof,” and that to survive, people need to be “switched on every day.” He credited small brewers survival ability to “operating unscripted,” rather than “looking for the next big trend.” 

Consultant Bump Williams of IRI, offered a (beer) glass half full or half empty scenario. Under half empty he listed slowdown in growth, broadened market, and big brewers 10-packs that have found a magic price point; on premise has gone soft; and also a slowdown in territorial expansion. Under half full he listed craft brewers high margins; still the Belles of the Ball; having the attention of retailers who “get it”; growing share of the category in both volume and dollars; still drawing in new shoppers; growth of seasonals, variety pack and 750s; and that big brewers are copying craft. 

Thirteen years ago many of today’s new wave brewers were likely still at college or high school. They were there in force in Boston, like the guys from Shorts Brewing in Michigan — they’ve got to be all under 30! On one panel, Larry Bell of Kalamazoo Brewing Co., was referred to, somewhat humorously, as an elder statesman of the craft brewing industry. Not that he’s that old; like many craft brewing pioneers, he started young. 

Many of these elder statesmen (and women) were much in evidence — people like Ken Grossman of Sierra Nevada and Ken Allen of Anderson Valley, this year’s recipient of the BA’s recognition award; the elegant and earthy Kim Jordan of New Belgium, Ed Stoudt hanging with face from the past, Wolfram Koehler of Crescent City Brewhouse, struggling back to 75 percent strength post-Katrina. Other faces like Pete Slosberg, formerly of Pete’s Wicked and former brewpub owners like Hartford, CT’s Les Sinnock, no longer maybe strictly into beer, but unable to break the addiction. And, of course the city hosts, Harpoon founders Rich Doyle and Dan Kenary throwing open the doors of their brewery, and Boston Beer’s Jim Koch doling out lobsters at his Jamaica Plain test brewery/visitor center and showing off his new foedors (oak aging tanks). 

The year that Boston last hosted the conference was also the year that Stone Brewing Co. began brewing in the San Diego area; this year Stone president Greg Koch gave the keynote speech. It had a few more bells and whistles than the usual including a 4-minute opening movie featuring members of the craft brewing community, a steady bombardment of slides, plenty of humor, an off-the-cuff song performance and of course a toast, giving a nod to collaborative brews. 

Koch’s main message was “Be Remarkable,” which he said has turned into a really good business model. His four tenets of Remarkability are: 1) Be mad passionate; 2) Your brand is you; 3) Be artisanal; 4) Be authentic. “We are the leaders for thinking people,” he said. “We lead at the local level and we are also leaders in the green movement.” 

Interestingly, Charlie Papazian’s message back in ’96 was “Be unique.” 

Also rampant at the event were distributors, some 220 who registered for a distributors’ conference prior to the main event. More and more, craft beer has become a part of the large distributors world and several seminars dealt with the new marriage of large distributor and small craft brewer. A seminar given by Samuel Merritt of Civilization of Beer, entitled Small Fish in a Big Pond, played to a standing room only crowd. Said Merritt, “They (distributors) are shopping around, trying to figure out who the players are and immersing themselves as best they can into the craft culture. They should be commended on their interest, especially the Bud, Miller/Coors houses that are just getting into it. There is a lot of us vs. them going on in the beer world and that will only alienate people who could be very helpful to each other.” 

Other panels comprised of established breweries, exposed new facets of distribution. One problem for new startups is that while distributors now have craft beer on their radar, they are loading up on a large craft such as New Belgium or Dogfish Head over the small, local brewer. “Stay with it. They like you and they need you,” came the advice from panelist David Walker of Firestone/Walker Brewing Co. 

Larry Bell’s advice for small brewers was to lobby for self-distribution for breweries under 5,000 barrels. He also lashed out at some of the “bad apples” of the distribution world who try to control market. “Who are they to tell me who to sell my beer to?” he demanded.

Reflecting current trends, the women’s market, green topics, and exports were given increased coverage in this year’s seminars. On the trade show floor, a bevy of awards were given out to American craft breweries which had medalled in beer competitions in Europe and Australia. 

Attendance of 2,300 was the largest in recent years although shy of 1996’s giddy 3,000. That year the industry was on fire coming off a growth rate of 50 percent in 1995. That fire burned out pretty quick as it turned out, but built up from the ashes, today’s craft brewing industry looks set to smolder for a good while. 

See you in Chicago for CBC and BrewExpo America, April 7-10, 2009.