The discussion that the terms “craft beer” and “craft brewer” are no longer beneficial or clear has been around for some time now. Nearly ten years ago, those who once advocated for these terms began to notice their dilution due to external influences, making it difficult to classify breweries or companies as small, noble businesses opposing giant corporations. We saw major corporations like AB InBev exploit their vast networks to cloud consumer choices, a tactic that proved very effective. What we did not anticipate was the decline of the broader “better beer” movement, prompting these corporations to step back from their craft beer ventures. Now, with companies like AB InBev and Molson Coors divesting from these ventures, one has to wonder about the relevance of these terms in 2024. Are they outdated, or do they still hold value?
This question often lingers in my mind as I sit in a local brewery taproom, contemplating the significance of such labels to the patrons. Do these consumers care about their brewer being “independent”? While they might like the notion of supporting a small, independent entity, it’s uncertain if they would verify such credentials. Are these ideals significant enough to warrant effort from consumers?
Moreover, when the Canadian cannabis giant Tilray recently acquired four U.S. breweries from Molson Coors, does it alter how consumers perceive those brands? Fans of these breweries – Terrapin Beer Co., Hop Valley Brewing Co., Revolver Brewing, and Atwater Brewery – does it matter to you that these brands might now be labeled “craft” by the Brewers Association, though they weren’t under Molson Coors? Is it believable that a large cannabis company would better manage these brands than a large brewing company? I am skeptical of that notion.
I question if consumers who care deeply about these distinctions still exist, considering the complexity involved in understanding corporate ownership and ethics today. This issue has evolved so much it mirrors a plot from The Good Place, complicating decisions for well-informed consumers. It’s become so challenging that many might simply choose not to worry about it. In reaction, I’ve shifted to purchasing only local beers from my own city, leaving the other concerns aside.
Consider the recent trend of breweries consolidating under large corporations that hardly fit the traditional mold of “small” or “independent.” Tilray Brands Inc., a multinational cannabis and pharmaceutical company, entered the beer market by acquiring Atlanta-based SweetWater Brewing Co. in 2020. Initially, this seemed like a unique venture, aligning with the cannabis culture often associated with SweetWater. However, Tilray subsequently embarked on a spree of acquisitions, taking over various brands from the AB InBev lineup and others, including Shock Top and several former independent craft breweries such as Breckenridge Brewery and Blue Point Brewing Company. The company further expanded by acquiring West Coast favorites like Green Flash Brewing and Alpine Beer Co., and later adding notable names from Molson Coors like Terrapin Beer Co. and Hop Valley Brewing Co. All these brands, including competitors like SweetWater and Terrapin, are now unified under Tilray’s extensive corporate umbrella. Last year, Tilray reported revenues of $627 million, reflecting a shift away from what many would consider genuine “craft beer.”
According to the official Craft Brewer definition by the Brewers Association, the inclusion of breweries like Terrapin and Atwater in Tilray’s portfolio paradoxically reels them back into the craft beer category. Tilray’s acquisitions allow these breweries to reclaim the “craft” designation, as Tilray, not primarily a beer producer, falls outside the threshold of the large brewery (producing over 6 million barrels per year). This classification might seem somewhat absurd. Despite changing ownership, these breweries continue their operations, shifting back into the craft beer statistics after being excluded the previous year. While Molson Coors struggled with these brands’ direction, it’s uncertain if Tilray will manage any better in revitalizing these shrinking legacy brands during a challenging time for the industry. Moreover, it remains to be seen whether consumers will return to brands like Terrapin, now labeled as craft under the Brewers Association’s criteria.
The definition of “craft brewer” has historically evolved, often aligning with the interests of the largest members within the industry. Previously, terms like “small” and “traditional” have been redefined, allowing larger producers like Yuengling to qualify under this category. At one point, a “craft brewer” had to focus primarily on beer, a criterion that lapsed around the same time Boston Beer Co.’s non-beer products outpaced their beer output. Today, with less than 20% of Boston Beer Co.’s production being actual beer, one wonders if definitions like these still hold any significance for the average consumer, who may find these distinctions too intricate to relate to. It’s ironic that AB InBev, once a major player in craft beer, now plays a minimal role, having possibly outmaneuvered itself by creating a market too complex for many consumers, pushing them towards locally-made, simpler options. Whether these local breweries qualify as “craft” or whether what they brew qualifies as “craft beer” seems increasingly irrelevant when survival is the primary concern for many in the industry.
I’ll let you know the next time I meet one, but you probably wouldn’t want to hold your breath waiting for it to happen.
Jim Vorel is a Paste staff writer and resident beer and liquor geek. You can follow him on Twitter for more drink writing.
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