Ale Street News Online

For most of us, it’s a tempest in a pint glass. The kerfuffle, such as it is, over the Brewers Association’s announced definition of a craft brewer as "small, independent and traditional" in October 2006 (it should be pointed out that this was the first time the BA had offered such and it was not a "redefinition") goes on, mostly over limitations on size and ownership.

Why is there a limit of less than two million barrels set in order to meet the "small" standard? What possible point is there to saying that becoming very successful got a brewer sent off into the darkness? And why is it important that no more than 25 percent ownership or controlling interest be in the hands of "by an alcoholic beverage industry member who is not themselves a craft brewer?"

What this usually boils down on the street is wondering why Goose Island Brewing is no longer considered a craft brewer but Boston Beer/Sam Adams remains among the anointed. And that is actually simple enough to answer, albeit in a begging-the-question fashion. Since 25 percent of Goose Island is owned by Widmer, which itself is partially owned by Anheuser-Busch, that disqualifies them under the ownership limitations. And nothing at all disqualifies Sam Adams, despite some hand-wringing about "contract brewing" among the purists.

This is all about business, of course. "Craft beer" has very effectively been branded as the cool thing in the marketplace over the past couple of years and the impressive and steady growth increase for the "segment" (which is to say, the defined) gets a lot of attention. The BA is, even if its agenda is grander than most from our perspective, essentially just another trade association. They have a story to tell, a cause to promote and parameters within which to work. "Small, independent and traditional" is obviously something they thought beneficial.

Rather than speculate or fulminate, we decided to ask two people who approve of the new guidelines to tell us why that’s so.

Along with pointing out that this not a "redefinition," but rather something brand new, Julia Herz, Craft Beer Program Director for the BA, explained it’s all a matter of statistics. "Before October 2006, which is when the definition was put in place, there had never been a Board of Directors defined description of what a ‘craft brewer’ is. The definition was created to establish the guidelines we use when we compile statistics reporting what the production of craft brewers is. And we didn’t just pull that two million figure out of a hat, it was already in place. The Federal Government uses two million barrels to define a small brewer. We are not trying to define craft beer, but what a craft brewer is."

Ownership, she added, is also part of that statistical picture, noting the number of breweries affected is actually much smaller than you might imagine. Citing just finalized 2007 statistics that had not yet been released at deadline (they were scheduled to be posted on the BA website in late May), she said, "there were 1449 breweries in operation in the U.S. last year and 1420 of those qualify as smaller producing, independently owned traditional breweries. Very few brewers in the U.S. do not fall under our definition."

Tom McCormick, executive director of the California Small Brewers Association, suggested another important reason for the restriction on ownership. "Every single year, our association expends a large amount of effort and cost to defend the rules and regulations that are in place to create a level playing field for brewers both small and large because every single year, the large breweries, Anheuser-Busch in particular, introduce legislation to change the rules of game. If owning a small brewery, in part or whole, allows A-B or another big brewer full membership benefits and opportunities in the trade association, to be on the committees, be in the meetings, and potentially to serve on the board, they would have access to information they could use in their efforts to change things to their benefit. It is critically important that we as an industry can strategize in private so we can protect our rights."

Otherwise, McCormick laughs, "I don’t know if there even needs to be a definition of a craft brewery. Let the marketplace and the consumer decide that."

Let’s give Herz the last word. "If you know where your beer comes from and the care put into making it, and you like what you taste, that’s what matters most," she says, "but I think it’s also helpful to know the authenticity of the beer you drink. What feels good tastes even better."

That’s probably a definition we can all live with.