Beer-articles 913

Oregon’s craft brewers are happy to be done with 2023, a year that saw softening demand and a spate of closures in an industry more accustomed to growth and expansion.

“It’s a tough moment for Oregon’s craft brewers,” said Ben Edmunds, the brewmaster at Breakside Brewery and the president of the Oregon Brewers Guild. “Increased costs, changes in consumer preferences, and diminished on-premise consumption all made 2023 an especially challenging year.”

The casualties included award-winning local breweries such as Ecliptic and Ex Novo, along with a slew of lesser-known names. Here’s a list compiled by the beer-writer Ezra Johnson-Greenough.

Oregon has long been a national leader in the craft-brew movement but the headwinds the sector now faces are national in scope and include category-shifting to non-alcoholic drinks, reduced beer consumption overall and a post-pandemic hangover that has put downward pressure on just about all alcoholic beverages.

In a December presentation to the industry, Bart Watson, the chief economist of the Brewer’s Association, which represents craft brewers nationwide, presented some hard truths.

“We were in double-digit growth as recently as 2014, 2015, and then we moved into kind of a more developed, slow, single-digit growth rate,” Watson said of the craft beer industry. “COVID hit, and we had the worst year in craft history in 2020 with a partial bounce-back in 2021.

“But what we’ve seen in 2022 and then 2023 is the new normal is one where, at least in volume sales—and this is volume percentage growth, not dollars, dollars would be positive—that craft has moved into a no to negative growth territory,” he continued.

That’s tough for Oregon’s breweries (there were 318 at the end of 2022) and will no doubt come up in meetings of a new panel that will hold its first meeting Jan. 12: the Task Force on Alcohol Pricing and Addiction Services.

The task force was formed through legislation passed last year. Its charge is to “study alcohol addiction and alcohol addiction prevention; distribution of resources for alcohol addiction treatment; current overall funding for alcohol addiction treatment programs; cost of alcohol addiction to the state; benefits and drawbacks of imposing taxes on beer and wine; and additional funding options for alcohol addiction treatment.”

That panel will be chaired by Oregon Liquor and Cannabis Commission Director Craig Prins, whose agency holds a monopoly on liquor sales in this state. As reported last week, one of the loudest voices in the debate over alcohol policy, Mike Marshall, director of Oregon Recovers, won’t be part of the conversation as Gov. Tina Kotek ejected him from the panel for controversial social media post.

Expect the state’s homegrown beer and wine producers to push back hard against one of the reasons the task force exists: a push from temperance and recovery advocates such as Marshall for higher taxes on beer and wine as a way to decrease consumption and raise revenue to pay for treatment. The Oregon Beverage Alliance, which represents the alcohol industry and its partners, has steadfastly opposed an increase in those taxes, which are among the nation’s lowest, according to the Oregon Legislative Revenue Office.

Oregon’s beer and wine taxes.

The Task Force on Alcohol Pricing and Addiction Services meets at 11:30 am Jan. 12. A link to the meeting is here.

Aslan Brewing is one of eleven breweries Patagonia Provisions has partnered with to promote using Kernza in beer.

Patagonia, Inc. is best known for their outdoor clothing and gear. But according to their mission statement, “We’re in the business to save our home planet.”

“With our apparel, maybe we can get to zero impact on our planet,” says Paul Lightfoot, general manager of Patagonia Provisions. “But food can be grown with regenerative agricultural practices; it can actively make things better.”

Patagonia Provisions was established as a division of Patagonia to promote regenerative agriculture and to promote food and beverages made from regenerative crops. “Eating is activism,” says the Patagonia Provisions website.

Patagonia Provisions, in collaboration with various other organizations, have made efforts towards making the consumption of beer more environmentally friendly. Patagonia Provisions have joined forces with the Land Institute, an organization established in 1976 with the goal of promoting perennial grain crops and polyculture farming practices, as well as eleven of the top breweries in America, all with the aim of promoting beer made from Kernza.

In the words of Tammy Kimbler, the chief communications officer at the Land Institute, modern grain agriculture generally takes place in areas where the natural ecosystem already established the soil. She questions why current agricultural systems function almost like mines, stripping the soil of its nutrients. Since Barley is not a native plant in North America, the Land Institute has been focusing on the domestication of native plants that can restore the local ecosystem.

Kernza is a product based on intermediate wheatgrass – a type of perennial grass that forms sods. Not only does it require less fuel and labor on the farm as a perennial plant, but also its deep root system, stretching up to 12 feet, helps retain soil, water, and nutrients. The roots of plants form a microbiome in the soil, and this microbiome gets obliterated each year due to annual crops like barley and wheat. With Kernza being a perennial plant, its root system and microbiome can remain undisturbed.

Kernza produces more oil but less starch when compared to traditional brewing grains. Since yeast feeds on starch to produce alcohol, Kernza can only form a minor portion of a beer’s grain content – about 15 percent typically. However, the oils in Kernza contribute to the beer’s flavor.

Unhulled Kernza perennial grain developed at The Land Institute in Salina, Kansas.

“It makes really, really good beer,” says Lightfoot. “With our products, it’s not just environmental. It has to also be of high quality.” In that vein, Patagonia Provisions has partnered with eleven of America’s most highly-regarded craft breweries to launch the Kernza beer project. Each of these eleven breweries was selected for their brewing skill and history of environmental stewardship:

Allagash Brewing Company — Allagash was founded in 1995 in Portland, ME and is best know for their Belgian-style Allagash White, the first beer Rob Tod brewed when he founded the company. Allagash is a Certified B Corp and supports social justice, local water quality and local farmers, buying over 1 million pounds of Maine-grown and Maine-malted barley every year.

Arizona Wilderness Brewing Co. — Arizona Wilderness is known for their unique regional beers, made from local ingredients such as prickly pears, pine needles and mesquite. The base of every brew is Arizona barley from Sinagua Malt, a company that transitions farmers away from more-water-intense crops like corn, saving millions of gallons of water.

Aslan Brewing — Similar to Allagash, Aslan is also a Certified B Corp brewery. Aslan is located in Bellingham, WA and prioritizes local, responsibly-farmed ingredients for their certified-organic beers. The brewing process aligns with the stringent organic standards, and the brewery infrastructure is created from recycled materials.

Bang Brewing — Since 2013, Bang has been an important part of the St. Paul, MN community. The company uses 100% organic materials and operates from a massive, wind-powered steel grain bin, specifically designed to lower water and energy consumption. Bang has brewed a greater number of beers with Kernza more than any other brewery.

The uniquely structured Bang Brewery is located in St. Paul, MN.

Hopworks Brewery — Established in 2007 in Portland, OR, Hopworks was the pioneering Certified B Corp brewery and the foremost Salmon-Safe brewery in the Pacific Northwest region. The manufacturer uses organic barley for the majority of its beers and brewed the inaugural Kernza beer in 2016.

Maui Brewing — Established in 2005, Maui is the most sizable craft brewery in Hawaii. As the first off-grid brewery in the USA, it solely utilizes solar panels, batteries, and biodiesel for power. This eco-friendly brewery dramatically reduces its environmental footprint by recycling nearly everything, including the carbon dioxide produced during brewing. Positioned as a key player within its community, Maui undertook substantial relief efforts in the aftermath of the Lahaina wildfire.

Odell Brewing Co. — First opened in 1989 by brewer Doug Odell, in conjunction with his wife Wynne and sister Corkie, Odell is recognized as the first ever craft brewery in Fort Collins, CO, an area now widely renowned as a craft brewing hub. Famous for its innovative brews and philanthropy, Odell continuously works to lessen its environmental impact, with significant accomplishments such as halving its water consumption.

Rhinegeist — Cincinnati’s Rhinegeist, committed to sustainability, recycles materials such as plastic grain bags, aluminum, scrap metal, plastic film, and used grain. It also persistently endeavors to reduce its energy and water usage.

Russian River Brewing Company — Russian River has gained worldwide fame as the creators of the highly sought-after Pliny the Younger IPA, which is released just once a year, alongside a host of other award-winning beers. Beer enthusiasts frequently make the pilgrimage to Russian River’s original brewpub, located in Santa Rosa, CA, and their production facility in Windsor, CA also draws considerable attention.

Sierra Nevada Brewing Co. – Founded in 1980 in Chico, CA with repurposed dairy equipment, Sierra Nevada was started by Ken Grossman. Grossman brewed a Pale Ale that was rich in hops, and this action contributed greatly to the ignition of the craft beer revolution. Presently, Sierra Nevada ranks as the third-largest craft brewery within the US, while also leading in recycling, composting, and solar power application. They’ve also won several awards in recognition of their environmental conservation efforts.

Topa Topa – Inspired by a mountain range close by, Topa Topa was set up in Ventura, CA. The brewery produces beer targeted at its enthusiastic surfing, biking, and climbing community which it serves through its taprooms located in Ventura, Ojai, Santa Barbara, and Camarillo.

When edge technology meets the art and science of brewing, something beautiful happens.

New Belgium Brewing Company has strategically deployed technology at the edge to support ambitious business goals, including producing a million barrels of world-class beer every year.

You’d be surprised how many conversations I’ve had over the last few months that center around data, AI and beer. Homebrewing is a popular hobby, and I know a number of folks who have tried it. Some kept it up, others didn’t, but they were all just brewing for themselves and were pretty flexible about how the beer turned out.

But in professional brewing, you don’t have nearly as much flexibility. Once you establish a brand, people know what your beer is supposed to taste like, and they expect it to be the same every time. That’s not as easy as you might think. Beer is a living thing that’s created via an organic process. As a home brewer, you can probably replicate your successes now and then if you don’t change any of the variables. In larger-scale operations, there are lots of variables that need to be tightly controlled to get consistent results. In fact, I’d bet there’s more similarity between a large-scale brewing operation and an advanced pharmaceutical manufacturer than your average homebrewing setup.

I recently engaged in a discussion with New Belgium Brewing Company. This company has evolved from a minor craft brewery to a national giant. One of their most loved beers is presently brewed at four different facilities. Even though each facility features a unique water source and altitude, the final product must still maintain the same taste. How do they achieve this consistency despite the differences? The answer is data!

Directing a batch of beer through numerous steps at multiple breweries can be likened to an art form that is enhanced by data. The process begins with ensuring the source ingredients are consistent and accurately measured. Whether these ingredients are acquired from the main supplier or alternates, identifying and tracking their exact features is crucial to producing a top-notch outcome. As the brewing progresses, the process necessitates the precise control of temperature, pressure and timing, with alerts and automatic corrections applied as needed to maintain everything within tolerances. Therefore, installing sensors at various points of the brewing journey is critical to enable brewers remotely monitor and automatically regulate the process.

After the beer is brewed, it has to be bottled and packaged. A high-speed production line is where a dented can or fallen bottle can cause a backlog. This results in more damaged containers, a lot of beer spillage and a massive mess that needs to cleaned up before brewing can continue. An alternative solution? Data.

Sensors installed along the line can monitor beer flow, the speed, and location hence informing New Belgium of how much has been packed and what remains. By comparing flow rates along the line, any leaks can be detected to help minimize waste. Cameras also monitor the line as everything moves at a high speed. Computer vision identifies fallen or damaged containers and can halt the line in a few seconds. This allows for cleanup and reset before the situation escalates.

After packaging, the distribution of beer is a complex process due to the sensitivity of the product to external factors. If the shipping conditions are not meticulously controlled, the end product will lose its potential to offer an appealing experience to the consumers. It is thus helpful to gather and analyze data during the distribution process. Monitoring metrics like the shipping container’s temperature or the time spent on the retail shelf can enhance the consumer experience.

In commercial beer production, it’s essential to identify valuable data and process it using advanced technology to gain insightful outcomes. According to information gathered from the IT team at New Belgium Brewing Company, the use of real-time data analytics and AI inferencing at the edge has played a significant role in enhancing efficiency, compliance, sustainability and savings.

You can gain more insights from this case study or by listening to this podcast episode.

Discover how Dell Technologies and Intel work collaboratively to fast-track innovation.

Is beer fading?

Over the past few weeks, I’ve written about both how beer fared in 2023 and some thoughts on what’s in store for 2024. While I remain cautiously optimistic overall, some clouds gathering on the horizon can still give me pause.

One such specter was the focus of a recent story on Fox News Digital by Anders Hagstrom. The piece noted that Americans drank less beer in 2023 than any other year this century. No matter what the extenuating circumstances, that fact can’t be seen as a positive for beer fans.

Of course, craft beer still only makes up a small percentage of the overall U.S. beer market. So part of the 2023 decline has to be blamed on the boycott against Bud Light. You might recall that the boycott was fueled by conservative reaction to Bud Light’s sponsorship agreement with transgender activist and social media influencer Dylan Mulvaney.

The brand commemorated Muvaney’s year of identifying as a woman by showcasing cans with the influencer’s likeness. This decision provoked backlash causing Bud Light’s sales to plummet 30% from 2022.

Nevertheless, even such a significant blow to one brand, regardless of its size, can’t fully explain why beer has reached a 23-year low.

As detailed in a recent Washington Examiner report, the changing preferences of younger generations are contributing to the dwindling beer sales. The report cited an MRI-Simmons data firm survey revealing that Generation Z drank less alcohol in comparison to other legal adults in the country. Only 58% of respondents acknowledged consuming alcohol in the past six months and a mere 56% of that group had consumed beer.

The widespread legalization of marijuana seems to have also taken a part of the beer market share. The younger generation appears to prefer marijuana over alcohol. Market analysts predict that sales will continue to fall steadily and show no sign of rebounding in 2024.

But everything is relative: Considering beer enjoyed more than a decade of extremely robust sales, it can probably take a hit. And the main indicator of beer’s flatlining was pointed out in a Slate article midway last year: Beer sales aren’t horrible; it just has lost market share to other types of alcohol. Last year was the first time beer came in second place for market share: Spirits edged out beer 42.9% to 41.2% as far as market share.

So let’s not think the sky is falling (and it certainly seems like Skye Vodka isn’t falling), but instead let’s keep celebrating the Golden Age of Beer we live in, by raising a glass – of beer, of course.

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Gov. Phil Murphy and the Legislature have hopefully found the right balance between tastes great and less filling so that New Jersey’s craft breweries can start 2024 on an optimistic note.

It needs to happen by Monday, when what’s called the 2022-2023 legislative session ends, but a Senate committee has advanced a bill that loosens the tight collar around the brewers, and gives the governor some of what he wanted in broader alcohol license reforms.

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Beer and chicken are a perfect pairing, not simply when you’re at a sports bar. Beer often becomes the go-to choice for battering not only chicken but also fish and other fried foods. To pack your chicken with flavor, try basting it with beer and some herbs.

Whether you’re preparing fried chicken strips or onion rings, beer is an essential ingredient for the batter. Its carbonation provides a lightness and crispness to fried foods, enhancing their taste experience. So, why not incorporate those advantages and others when roasting or grilling chicken too? A slightly fancier version of beer-can chicken, the ale-infused bird stays juicy and cool due to basting and acquires the malty flavor of beer.

You can create a marinade by combining beer with olive oil and tossing in some herbs and spices. It’s not necessary to be a beer connoisseur to understand that no two beers are the same. They tend to have a sweetness, so balance your basting mixture with earthy herbs such as oregano, rosemary, or sage.

Read more: 12 Different Ways To Cook Chicken

Beer ranges from light and fruity to dark and bitter; it’s impossible to choose the absolute perfect herb for the drink. Instead, start with what you want to eat your chicken with and pick a type of beer. Something classic like baked chicken with a side of fries and an everyday salad with herby lemon vinaigrette requires a classic beer. A light, crisp lager like Miller Lite or Corona Extra works best with rich, savory herbs — think basil or marjoram.

For a dish that’s on the sweeter side, opt for fruit beers. Something sweet with hints of mango, orange blossom, or grapefruit works well with a tangy coleslaw or sauteed veggies. Choose herbs that enhance the bright flavor of the fruity beer. Zesty herbs like mint, thyme, or lavender are the perfect accompaniment to a mellow, fruity beer. If it’s something citrusy, like a lime-flavored beer, use cilantro and chives and shred the chicken to make leftover makeover shredded chicken tacos.

Enhance your favorite dark, caramelized stout with the woody flavors of rosemary, tarragon, and bay leaves. To play up those rich, bitter flavors, a dash of heady spices like cinnamon and nutmeg offer smoky hints of sweetness. Balance out this woodsy, roasted chicken with something light yet savory — this cheesy asparagus galette provides a hint of tang from the lemon, followed by an undertone of umami courtesy of the goat cheese.

Read the original article on Tasting Table.

We’re just a couple of days into Dry January, the time of year when a rising number of Americans vow to turn their backs on alcoholic drinks.

Nonetheless, what if you had the opportunity to keep enjoying your best-loved beers while also keeping away from alcohol?

This is one of the ultimate objectives in brewing: a delicious, fully satisfying, non-alcoholic beer. The newest addition to the list is RationAle, which was freshly introduced in San Diego County.

The company’s three beers – West Coast IPA, Hazy Citrus IPA, and Mexican Lager – are targeted towards craft beer enthusiasts who are eager for a healthier lifestyle.

“We are pushing the wellness attributes of our beer,” said Jamie Fay, RationAle’s co-founder.

That’s not all they are pushing.

“Our beer tastes really good,” said co-founder Wendy Pickett, who grew up in Encinitas. “At its core, it’s delicious.”

It’s also a potential gold mine.

Take for instance the rise of Athletic Brewing, headquartered in Connecticut with a significant brewing branch in San Diego. The new firm was not even amongst the top 50 leading craft breweries according to the Brewer’s Association’s list in 2020.

However, it made a big jump to stand at the 27th position in 2021. By 2022, it had further made an impressive leap to the 13th spot.

Exact figures for the year 2023 are not currently available, but those in the industry do not foresee anything standing in the way of Athletic’s rapid climb.

“The growth and unprecedented success of non-alcoholic craft beer is undeniably the biggest development in 2023”, says Tiago Carneiro, the brains behind the establishment of NOVO Brazil Brewing based in Chula Vista. “If a company brews a unique and high-quality product, it definitely has access to numerous opportunities.”

Athletic, of course, competes against several titans. These include significant players like Anheuser-Busch, Coors, Corona, Heineken, and several up-and-coming craft breweries.

In the recent time, Karl Strauss has launched Non-Alcoholic Red Trolley, an alcohol-free variant of its popular Irish red ale. This beer, sold in 12-ounce bottles, can be found at the five Karl Strauss locations throughout San Diego County.

The team behind RationAle acknowledges that they are not alone in this field. They have even sought advice from Athletic co-founder Bill Shufelt.

As Fay recounts, “Bill emphasized the necessity of maintaining high quality and safety standards.”

Good partnerships help, too. RationAle’s beers will soon be brewed by Oregon powerhouse Deschutes.

“We’re super stoked,” said Pickett.

In San Diego County’s sea of craft breweries, how can a newcomer stand out?

“We offer traditional styles,” said Erin Fulcher, director of operations at Barley & Sword Brewing. “We’re trying to make all the people who are tired of hoppy IPAs come back to what beer was, and is.”

Mike Howell, a Navy veteran and experienced home brewer, inaugurated Barley & Sword on June 15 last year. Located at 3052 El Cajon Blvd. in San Diego, it is among the smallest breweries in the region.

Distinguished by its consistent offering of cask-conditioned ale, Barley & Sword also presents an array of lesser-seen beer styles such as best bitters, English IPAs, and dunkels.

The nascent establishment bagged a gold medal for its hefeweizen and a silver for its Scottish ale at the previous year’s San Diego International Beer competition.

A genuinely warm environment where beers are served in their true style is what Fulcher guarantees at Barley & Sword.

“You can come in here, drink a beer, talk to someone and they’re your friend,” she said.

Saturday: The 13th annual San Diego Brew Fest, at Liberty Station’s Naval Training Center Park, promises to feature 200 beers from 70 breweries. noon to 4 p.m. at NTC Park, 2455 Cushing Road, San Diego. $50 to $65. eventbrite.com

Saturday: Veteran-owned El Cid Brewery will screen a 2023 action flick, “The Master Chief: Part One,” at 6 p.m. eventbrite.com.

Mexican Lager

From: RationAle Brewing, Windsor, CA

ABV (Alcohol By Volume): Less than 0.5 percent

Style: Mexican-style Lager

Drink or dump: Drink. A durable head tops this pleasant non-alcoholic brew. There’s a snappy corn base, a hint of lime and a clean finish, unlike the chemical stew that mars so many NA brews.

Special Effects IPA

From: Brooklyn Brewery

ABV: Less than 0.5 percent

Style: West Coast IPA

Drink or dump: Drink. What’s so special about Special Effects? This bubbly brew boasts a robust and flavourful hop profile. It’s my favourite NA beer so far and it complemented a lunch of rockfish and mango salad nicely.

Heineken 0.0

From: Heineken, Amsterdam, Holland

ABV: Less than 0.5 percent

Style: Lager

Drink or dump: Dump. Foul aroma gives you a fair warning of this beer’s moldy grain flavor — that’s my unhappy experience with bottled 0.0. The canned version was better but both, alas, were worse than the other NA beers in my lineup.

Rowe is a freelance writer.

It’s already been obvious for some time now that Gen Z’s drinking habits don’t match those of the generations before them. A 2023 Gallup poll found that fewer Americans aged 18-34 now drink alcohol than at any point in the past 22 years, and Billboard reported last year that music venues are suffering due to low alcohol sales. But beer sales in particular are a slightly different story, and the generation gap can only go so far in explaining them. NBC reports that the beer industry is seeing its lowest sales in a generation, and a number of factors are contributing to the struggle.

Industry group Beer Marketer’s Insights (BMI) told NBC that beer shipments have fallen to levels not seen since 1999—a timeframe that aligns rather tidily with the lifecycle of the craft beer boom. Indeed, the 2023 closure of Anchor Brewing seemed to signal the start of a newly rocky path for America’s craft beer scene, with craft sales shrinking faster than their mass-market counterparts. But the biggest players are feeling it too: “It was a tough year for beer,” BMI vice president David Steinman said.

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Ten years ago, grocery and liquor store shelves looked comparatively one-note; now there are so many more options that it’s not about choosing which beer to drink, but rather choosing which broad category of beverage to start with. Do you want to drink beer? Wine? Liquor? A canned tequila cocktail? A hard seltzer that tastes like an orange cream popsicle? Hard soda? Hard lemonade? Hard tea? Hard iced coffee? The mere existence of all these products means that each one must work harder to elbow its way into consumers’ carts.

“Some of the world’s largest soft drink and energy companies introduced sugar-forward alcohol beverages to the market, all of which are vying for the same consumer occasions as traditional malt- and hop-forward products,” Lester Jones of the National Beer Wholesalers Association told NBC via email.

However, it’s not all doom and gloom for the beer industry. The level of beer consumption in the U.S. doesn’t actually translate directly to the industry’s earnings, nor does it reflect global trends. The price of beer, NBC notes, has risen at a rate that both matches and sometimes exceeds the rate of overall inflation. On top of that, as consumers ditch the mass-market brands like Bud Light they often embrace more expensive brands—a phenomenon that led to the ascendance of Modelo Especial in 2023. These factors, coupled with strong international sales, mean that profits remain high within the beer category.

We will likely continue to see this sort of dualism play out within the beer industry throughout 2024 and beyond: Fewer drinkers and a onetime glut of microbreweries paring down to levels that better match demand, but maybe also higher profits overall as the palates of existing drinkers become more particular. Recent beverage trends like seltzer and RTD cocktails haven’t been enough to topple this dominant category, they’ve made it a lot harder for beer to stand out from the pack.

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It’s already been obvious for some time now that Gen Z’s drinking habits don’t match those of the generations before them. A 2023 Gallup poll found that fewer Americans aged 18-34 now drink alcohol than at any point in the past 22 years, and Billboard reported last year that music venues are suffering due to low alcohol sales. But beer sales in particular are a slightly different story, and the generation gap can only go so far in explaining them. NBC reports that the beer industry is seeing its lowest sales in a generation, and a number of factors are contributing to the struggle.

Industry group Beer Marketer’s Insights (BMI) told NBC that beer shipments have fallen to levels not seen since 1999—a timeframe that aligns rather tidily with the lifecycle of the craft beer boom. Indeed, the 2023 closure of Anchor Brewing seemed to signal the start of a newly rocky path for America’s craft beer scene, with craft sales shrinking faster than their mass-market counterparts. But the biggest players are feeling it too: “It was a tough year for beer,” BMI vice president David Steinman said.

Read more

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Three Decades Later, Someone Has Finally Beaten Tetris On NES

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Ten years ago, grocery and liquor store shelves looked comparatively one-note; now there are so many more options that it’s not about choosing which beer to drink, but rather choosing which broad category of beverage to start with. Do you want to drink beer? Wine? Liquor? A canned tequila cocktail? A hard seltzer that tastes like an orange cream popsicle? Hard soda? Hard lemonade? Hard tea? Hard iced coffee? The mere existence of all these products means that each one must work harder to elbow its way into consumers’ carts.

“Some of the world’s largest soft drink and energy companies introduced sugar-forward alcohol beverages to the market, all of which are vying for the same consumer occasions as traditional malt- and hop-forward products,” Lester Jones of the National Beer Wholesalers Association told NBC via email.

However, it’s not all doom and gloom for the beer industry. The level of beer consumption in the U.S. doesn’t actually translate directly to the industry’s earnings, nor does it reflect global trends. The price of beer, NBC notes, has risen at a rate that both matches and sometimes exceeds the rate of overall inflation. On top of that, as consumers ditch the mass-market brands like Bud Light they often embrace more expensive brands—a phenomenon that led to the ascendance of Modelo Especial in 2023. These factors, coupled with strong international sales, mean that profits remain high within the beer category.

We will likely continue to see this sort of dualism play out within the beer industry throughout 2024 and beyond: Fewer drinkers and a onetime glut of microbreweries paring down to levels that better match demand, but maybe also higher profits overall as the palates of existing drinkers become more particular. Recent beverage trends like seltzer and RTD cocktails haven’t been enough to topple this dominant category, they’ve made it a lot harder for beer to stand out from the pack.

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Big beer giants like Anheuser-Busch InBev and Molson Coors Beverage are known for brewing beers from diverse brands in their huge production plants. What might surprise many is the fact that various craft-beer brands operate without their own breweries, instead choosing to sign contract-brewing agreements with other brewing firms.

Typically, oversize brewing firms with free production capacity and brewing schedule space undertake the task of brewing beers for a different business. This encompasses brewing, fermenting, cellaring, and packaging into kegs, cans, and bottles. Generally, it also involves cold storage after packaging, before the client company distributes its beers to vendors.

In the late 1990s and early 2000s, contract brewing was viewed negatively. Many within the brewing sector perceived it as a short-cut used by brewers devoid of passion or skill. Fans of craft-beer during that period came to share those views and showed a distrust in a brand’s beers if they were brewed by a different entity. This wasn’t helped by the fact that beers brewed under contract were typically of uninteresting, commonplace styles offered by brands lacking an interesting narrative, point of view, or marketing moxie.

However, contract-brewing has evolved significantly over the past ten years, particularly in San Diego County, where it is increasingly common. It is benefitting both the companies that provide these services and their customers.

It’s not uncommon for business proprietors to choose to have their beers brewed by a different establishment. This choice can stem from various motivators.

A significant portion of these entrepreneurs harbor ambitious business goals and possess the acumen to attain them by establishing a brand and marketing beer. However, they may lack the desire or means to create and oversee a production facility. Constructing such a facility is not only a time-consuming endeavor but also a financially demanding one. Despite the possibility of reducing time expenditure by taking over a pre-existing brewery, the financial outlay is substantial. As a result, newcomers to the industry often find themselves with little capital to start with.

Electing to have one’s beers contract-brewed provides a business owner with the opportunity to concentrate on marketing and selling their product, as well as bringing in revenue. This option eliminates the expenses and liabilities associated with operating a brewery. Added benefits include not having to hire staff for production, cellaring, or packaging purposes. This circumstance allows a business owner to maintain a small, concentrated team primarily dedicated to sales and other revenue-generating sectors of the business. Additionally, clients significantly save on utility bills and other circumvented overhead expenses.

Apart from monetary incentives, hiring a contract brewing company also offers the advantage of professional expertise, particularly important for business owners with limited or no experience in brewing. Most brewing companies that provide contract services expand to a size capable of doing so based on their product’s quality.

A prime example of local contract brewing is AleSmith Brewing. This Miramar-based brewery has been around for 28 years and has been contract brewing for roughly ten. Known globally for their award-winning beers, AleSmith offers a diverse range of services in recipe development and refinement according to their clients’ needs. They are experts in their brewing system, beer styles, and ingredients while their clients appreciate the guidance they receive from the AleSmith brewing team.

Contract brewing is not only for entrepreneurs who do not own breweries. Brewery owners whose production capabilities are at full capacity also enter into contract brewing agreements. In such scenarios, the brewery owner will have their best-selling beers replicated as closely as possible by the contract brewing operation.

Typically, the contract brewery will have a larger setup and be capable of brewing the client’s popular beers in significantly larger batches. This is particularly beneficial for breweries that are expanding their distribution into new regions or states.

So, who contracts brewing and who is under contract?

AleSmith has become a contract-brewing powerhouse, joining Mission Brewery in the East Village, which has been a player in the arena for well over a decade. Miramar-based Ballast Point Brewing and North Park-based Mike Hess Brewing are other large operations that diversify their revenue streams in this manner, but other smaller breweries have dabbled in contract-brewing as well.

Earlier this year, San Marcos-based Creative Creature Brewing began working with Riverside County homebrewer and podcaster Justin Allen to produce the beers of his side hustle, BeerDad’s Brew Works. And over the summer, local chef and cookbook author Lauren Lawless teamed with Vista-based WestBrew to unveil the inaugural blonde ale of her Flawless Beer brand. While Lawless has plenty of experience developing flavors, she had zero experience with brewing or background in how beer is made. Working with experienced brewing professionals has allowed her to pour all of her energy into marketing her beer via television, magazines and news outlets, and getting her beer sold by bars, restaurants and other retail establishments.

Other local brands getting along with some help from their contracting friends include Cerveza Xteca, Hillcrest Brewing, Latitude 33 Brewing, Mason Ale Works, Paradise Hills Brewing, Shoots Beer and SouthNorte Beer. The lattermost of those concerns has won multiple gold medals for its beers at the most prestigious professional brewing competition in the world — Denver’s Great American Beer Festival — proving the quality that can be achieved in the modern era of contract-brewing, another key reason it’s now seen as a viable and intelligent option for certain individuals looking to make a splash in the beer industry.

Brandon Hernández is founder of San Diego Beer News (www.sandiegobeer.news), a site providing daily coverage of the county’s brewing industry, a beat he’s covered for 17 years. Follow him @sdbeernews or contact him at: brandon@sandiegobeer.news