A Matter of Choice
With the recent reports that craft beer sales are slowing, many are left wondering if the golden bubble is finally bursting. No industry could keep the year over year growth that craft beer has seen these last ten years. If you look closer at the numbers, the picture becomes a bit clearer as to why sales numbers are down from what they were projected to be, based on previous years. Here’s the numbers from 2015, and while 12.8% growth is nothing to sneeze at, that number is down from 18% volume growth in 2014. Recent reports from the biggest craft breweries like Samuel Adams, Craft Beer Alliance, and New Belgium show less-than-projected growth for the 2016 year.
Too Much Choice?
Ironically, even AB InBev has an opinion on the recent slowdown of craft beer growth. CEO Carlos Britos was explaining the beer giant’s less than expected growth in the 3rd quarter and remarked about the lower than expected numbers.
“Our customers are thinking, ‘how much more of an assortment can you carry?'” Brito said. Turning to consumers, Brito said they were “a bit tired of choice and go for fewer brands”.
This comment is rich coming from a company that actively has tried to decrease choice for craft beer consumers through their (now defunct) incentive-based programs to their distributors. It’s like they are trying to will their wish for the future into existence.
I disagree wholeheartedly that craft beer consumers are sick of the amount of choices they see at a bar and beer store. In fact, while Brito is talking about choice in terms of brands of beer, if you look closer at the idea of choice, it appears that consumers are choosing the brands that offer MORE choices in styles and beers.
A Closer Look
Yes, the numbers have fallen, but a lot of that decline is because the biggest breweries which carry more weight in those figures have seen the biggest decline in volume. Maybe this volume decrease is because more and more craft beer drinkers are turning to hyper-local breweries? Smaller breweries have the ability to create a constantly innovative line-up of beers. In a way, Boston Beer Company is a victim of its own success. It’s such a pioneer in the industry and has grown by leaps and bounds over the years. However, with that level of growth comes the hindrance of big business. Also, the bigger Sam Adams gets, the perception of them being a craft beer seems to decrease. When there is so much choice at any given bar or brewery people are often turning to the newer, smaller brands.
Here at Thorn Street, we have a constant rotation of 15 beers on tap including many one-offs that will be later brewed on a bigger system, while others never will return. When people come and drink in our tasting room, as well as the hundreds of tasting rooms across San Diego, they are literally sipping the cutting edge of craft beer. Small breweries can think up a beer and have it brewed the next day. They can delve into unusual styles like Brett and Gose. There are fewer people to get approval from when trying new ideas. This leads to innovation because brewers are given more autonomy to brew their hearts’ desires.
So, no, Carlos Brito, craft beer drinkers are not sick of choice. They are moving on to more choice and are becoming savvier consumers. They are able to spot his comments as wishful thinking from a company who would love nothing more than to cut down the amount of craft beer choices available to people.