More money, more problems – Kiwi craft beer growing pains

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What happens when your hobby and passion become your business? And what happens when business booms?

The incredible growth of craft beer in the past decade has created a difficult dilemma for many of the nation’s craft brewers, who suddenly find themselves running multimillion-dollar operations.

The craft beer boom has transformed the industry.

Statistics released today show total beer consumption is growing again for the first time in years.

The high alcohol category – which tends to reflect the craft beer end of the market – has doubled in the past five years and rose 17 per cent last year.

But some breweries have been growing much faster. (full story)

Big brewery ownership a two-sided coin for craft brewers looking to sell

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DB Breweries managing director Andy Routley, left, and Tuatara founder and master brewer Carl Vasta at Tuatara’s brewery in Paraparaumu.

“About bloody time.”

Those were the first three words out of my mouth when I saw craft brewer Tuatara had been sold to Heineken-owned DB.

The Paraparaumu company has been linked to all three of New Zealand’s big brewing companies – Lion, DB and Independent Liquor – for years, and was always going to be an attractive buy after winning champion New Zealand brewery in 2016. (full story)

[WARNING] Craft Beer in Crisis?

richard_emersonWhy don’t I hear more concern from craft beer drinkers about the recent purchase of Panhead by Lion? Are the warning signs from the US craft beer industry or even from history not being listened to?

 

This comment from Sam Calagione hopefully sums up what is happening

Dogfish Head founder crafts brewery’s future

Q: What does growing consolidation mean for the craft beer movement?
A: Everyone needs to realize that right now in every bar in every state there are massive global breweries going in and trying to sell those bars kegs of beer that they are hoisting off as local craft beers from somewhere in America that are really being made and distributed and marketed by the world’s biggest breweries. If the consumer doesn’t vote with their pocketbook to prioritize indie craft, we risk losing the vibrancy and diversity of our industry because the little guys can’t compete at the price points that the big brewers are hoisting this so-called craft beer off on.

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Please consider history as well

Craft Brewing Takes Flight in N.Z. (part II)

In 1923, the first New Zealand brewing giant, under the name of New Zealand Breweries (since renamed Lion), was born through the merger of ten major regional breweries (including all of their licensed hotels and tied independents) located in the major metropolitan areas of the country. Although exact figures are unavailable, it is probably safe to say this new company controlled well over half of the country’s beer production and distribution. In subsequent years Lion continued to grow, not through capital investment in new plants, but by buying additional regionals, closing some and bringing others into the corporate fold.

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richard_emerson (1)Is the follow article part of making things OK? Are Kirin/Lion/Emerson’s really just good guys after all? If so maybe some of the bars they have tied might be good enough to free up a tap to two so that the small independent brewers might be able to sell a little more beer? Seems a bit pointless helping small independent breweries to make beer when on the other hand they are blocked from the majority of the market through tied agreements.

 

‘Big boy’ steps in to save brewers’ bacon

But Emerson’s Brewery in Dunedin came to the rescue and last month secured an organic malt supply for the micro-brewery.

At the brewery’s 5000L brew house the inevitable spillage was about 5tons a year. (pretty sure this isn’t true, and if it is it won’t be long before Kirin come and sort it out)

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