I still haven't got my mind around this one yet. There seem to be plenty of stories like how Aussies are pounding brews despite the times or this one from the US mid-Atlantic (or is that the north of the South?) describing how wonderful things are in the beer world:
“It’s beer, people love beer,“ said Tommy Williams, a specialty manager at local grocery store Earthfare. Perhaps even more so when times are tough. “I think people are looking for an inexpensive indulgence and I think beer offers that,“ said Williams. Tommy Williams runs the beer section at Earthfare in Johnson City. “Compared to last year beer sales have increased,“ said Williams, both in his store and company-wide.
But then there are others - maybe more others - like this about Heineken suffering in the UK. Like Canada's booze trade starting to retract back in October. In the hard hit US Midwest, people are switching to "low-line" beers. And it's not even that more people are necessarily at home cocooning with their brew as take-home beer revenues are down almost 14% in the US over the last five or six months. Can we set out some possible principles that might be emerging?- Wanting a beer may be more important wanting a good beer - meaning "life is too short for bad beer" is not true.
- If so, could it be that beer is devolving into a commodity that is affordable but not a luxury to a greater than expected degree because people at the end of the day just want "a beer"?
- As a result, once there is a weeding out of the breweries that are due to unfortunate ill-timed debts like Heineken or other poor business plans that pre-date the recession, will people prefer the non-luxurious but familiar over the exotic presenting a brutal challenge to craft brewers?
- Or is it more. Are we going to move past all that, move past 1990s recession cocooning that spawned Martha Stewart, that poster child for the ills of this first decade, to something sterner, to "a deliberate effort to deny oneself pleasure" or "conspicuous non-consumption"?
- Or, worse than that, are things going to go so quickly to hell that by August we are all going to be living in cardboard boxes making beer just a sweet malty memory?
I don't know. That is, in fact, the safest thing I can say: I don't know. No one knows. And when no one knows, it might be a little safer to say that a beer might taste good about now, no matter what type of beer that is. Maybe that is what's happening.
Comments
Matt - February 19, 2009 10:27 pm
There has been an uptick in Homebrew sales and while brewing your own beer might not be as cheap as buying a 6 pack of Bud it sure can be on par and just as good as Microbrewed beers that can cost $5 to $10 a six pack .
ethan - February 20, 2009 12:49 am
I've been trying to keep tabs on this too. Deschutes commented about this back in December:
http://www.deschutesbrewery.com/blog/2008/12/16/the-economy-of-beer/
And NPR talked about it a few days ago:
http://www.npr.org/templates/story/story.php?storyId=100528810
Tough times for all, I guess.
Knut Albert - February 20, 2009 3:08 am
Danish media wrote about a number of concert venues across the country who are appealing to the government for help. They are already receiving some funds for promoting new music etc, but it is not enough. The reason? The audience at the concerts only have a beer or two, while they used to have quite a few.
Bad news? Sure, for those who want to sell pale lagers in huge quantities. But maybe the public would then pay a little extra for a craft brew to enjoy at the concert?
Alan - February 20, 2009 9:58 am
"...maybe the public would then pay a little extra for a craft brew to enjoy at the concert.."
I am now wondering if this is exactly the wrong hope and business strategy.
Josh - February 20, 2009 10:19 am
The states in the article that refers to the midatlantic include TN, NC, SC, VA and GA.
I've heard midatlantic refer to coastal states from NY down to GA.
Alan - February 20, 2009 11:36 am
Nice catch. Being Canadian I was working on the basis of the geographical jurisdiction of the source of the article, TriCities.com. The "tri" cities seem to be in both TN and VA.
But I think it is not unlike "the mid-section" as used in WWE and other TV wrestling: a zone where you think it likely is
rompinreggie - February 20, 2009 12:58 pm
Luxury-Affordable-Sales Down? Yes indeed. My local pub, unless there is a hockey game on, is like a morgue most of the time. Saturday afternoons are OK, but mostly lunch crowd. With the decreased sales, management, using their infinite brilliance, has n-ggered up the prices. Duh! Many of the boys have jumped ship, and gone across the village for cheaper beer and ugly waitress's. Not me, I'm hanging in there, but consume much less, as being ungainfully employed, seems to have a bearing on useage. In addition to this dilema, the degree of internal happiness is probably at an all time low. The adjoining beer and wine store's sales are down 15%, right on the nose, and falling each month.
But alas, I shall embark on a new mission; in these times of desparation. I shall start making my own beer. It will be less expensive, and will cut back on jawwing with the boys, and of course, checking out the new waitress. So I shall see more time in my shop with Rosie, my dog.
I shall let those of you that care, know how my first batch turns out. Adios from the Pacific side of Canada
Blake - February 21, 2009 7:56 pm
I pose this.... about a sixer of beer vs. a bottle of wine. Beer is still considerably cheaper. The stigma of beer is cheap. If we, as industry can promote the flavorful beers, consumers will most likely never go back to those that lack flavor. One case in point is the significant market share of Blue Moon. This is bad for craft in that it is a Coors company but it is fantastic in that they are slowly taking their own customers from their normal product lines of flavorless beers, as they indulge in their curiosity.
blake from beer universe
Smoove D - February 22, 2009 3:29 pm
I'm with Matt. I'm on my third batch of homebrew, and while it isn't a great savings doing it from kits as opposed to all grain, for the price of Bud I get beer with flavor. Plus I can customize it to suit myself.
Patrick Hirlehey - February 22, 2009 10:14 pm
I regards to craft brews at concerts, recently I noticed Great Lakes "Red Leaf" promoted at Toronto's Massey Hall at a decent price. But when I saw Neil Young at the Air Canada Centre, it was close to $30 for two large Molsons. Even without a recession I'd be limiting myself.
Alan - February 25, 2009 12:05 am
More food for thought in this great article.
rompinreggie - February 25, 2009 11:30 am
Hi, I have done a little research on the home brew scene up here in Canada. A local pair of ladies, mother and daughter, sell a system which is boiled, etc. etc. and the net result is 100 - 500 ml bottles(plastic) for $130.00 CAN. Presently, at our government operated liquor outlets, I pay $22.70 CAN. for 12 - 355 ml cans for popular swill, like Molson's Canadian, Bud, etc. Any beer with some balls is more, like the mini brewery types. Yesterday, I noticed my pub now has Guiness on tap. Only $8.50/pint(12 oz?) Molson's Canadian on tap is $4.50 CAN. So, I am thinking the home brew may be the way to go, and the $130.00 will brew any beer you want. All you do is tell the ladies, and they do it for you.
Now, you have to realize, we, up here are taxed to death, at liquor outlets. The $22.70 - 12 pack here can be bought in WA. state in a grocery store for about 7 bucks USD. Same beer from the same brewery. Go figure. BUT, we do have free medical. Problem there is, you can't see a Dr. without waiting 2 years.
Adios, Reg