Boom, Bust...or Both? America's craft beer industry

[zane9]

Here's links to two thought-provoking articles. One from Draft Magazine, the other from Michigan Live.

Wondering how we are mirroring this process, albeit in much smaller proportions.

http://draftmag.com/features/will-it-fall-brewery-beer/

http://www.mlive.com/business/west-mich ... ubble.html

[Belgian]

Well it could spell the end for Ontario brewers that can no longer just rely on loyalties:

(From the article)
There are a few breweries right now that none of us, meaning respected beer bars, support regularly. They sort of get ‘pity handles’ because we’re all on the same team.”

^ We all know those type of brewers... they're like a cousin we still talk to no matter what they're like.

But I'll tell you what. No evolving process is completely linear... we think that 'a lot more' breweries could mean the same proportion 'new bad' ones as 'new good' ones. Although will it?

Because look at another parallel, the wine industry with so many new producers. Wine has expanded in quantum leaps over recent decades, and the most interesting thing is overall quality has improved across the board, thanks to far better technology and controls. There is much more great quality wine available nowadays than ever before... and it's getting much harder to find truly bad wine.

So where did they go... the formerly great number of truly bad wine makers? They must have adapted, gotten their act together... or disappeared. The pressure of predominantly good product forces the bad out of the market.

[Tapsucker]

I look at it this way. If the bubble pops, it isn't going to wipe out everybody. We will still be far ahead of where we were in terms of quality and choice. So as a beer drinker, I do not fret.
For those that are investing, like every trend, you better know what you are doing.

[cratez]

I look at it this way. If the bubble pops, it isn't going to wipe out everybody. We will still be far ahead of where we were in terms of quality and choice. So as a beer drinker, I do not fret. For those (who) are investing, like every trend, you better know what you are doing.

Couldn't have said it better myself. There's also some convincing arguments as to why a second "bust" is unlikely in the States.

[zane9]

Couldn't have said it better myself. There's also some convincing arguments as to why a second "bust" is unlikely in the States.

Thanks for the link. "1605 craft breweries in some stage of the planning process" !! That's staggering.

[cratez]

Thanks for the link. "1605 craft breweries in some stage of the planning process"!! That's staggering.

Well, considering several local markets are already saturated with great options, that figure suggests another 1990s-style bust will be likely. But I think Gatza's comments on the sophistication of the supply chain, consumer preferences for "buying local," and the fact that there is still room to grow in many states point to why the industry might lose a few hundred breweries as it expands but will not experience a full-on collapse.

[Tapsucker]

I wonder if there is a similar thread on some hot sauce geek page about how there are too many suppliers congesting the market. I guess ketchup is their evil Coors.

[zane9]

I wonder if there is a similar thread on some hot sauce geek page about how there are too many suppliers congesting the market. I guess ketchup is their evil Coors.

Do some research and let us know!

[cratez]

I wonder if there is a similar thread on some hot sauce geek page about how there are too many suppliers congesting the market. I guess ketchup is their evil Coors.

Needless to say we're living in the Golden Era of craft beer, and the fact that having "too many" excellent options is one of the industry's biggest perceived problems is pretty fantastic.