[HN Gopher] The huge number of small breweries
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       The huge number of small breweries
        
       Author : lxm
       Score  : 26 points
       Date   : 2023-01-05 23:28 UTC (1 days ago)
        
 (HTM) web link (www.wsj.com)
 (TXT) w3m dump (www.wsj.com)
        
       | bitexploder wrote:
       | To me this is all very cool. If you are starting a brewery you
       | have to have a laser focused business plan and ideas that will
       | help you stand out. Your odds of making it big are low, but if
       | that is a goal you should probably be aiming for that from the
       | start. I love that small neighborhood breweries are a thing. No
       | the universe doesn't really need your take on an IPA, but people
       | who enjoy craft brew will often drink a local beer over another
       | if it is good. If you get enough of a following, maybe try and
       | package and distribute some, but I think being a cool local tap
       | house is way easier in the current market than trying to package
       | and distribute right away.
        
         | tracerbulletx wrote:
         | Yeah, the large variety is the feature that actually creates
         | the value. The fact you can go to almost any new town and
         | discover a new beer you've never heard of before is the joy of
         | discovery and the "collection" drive that powers the industry.
        
           | bombcar wrote:
           | Yeah, there's no reason we need all our beer made in the
           | massive piss factories of Milwaukee Wisconsin.
           | 
           | Even if local beer X and the local beer Y from 50 miles away
           | are basically the same from different breweries- why not?
        
             | jcampbell1 wrote:
             | Some people actually like lagers and don't want that fruity
             | taste and smell that all ales have. Lagers are much more
             | expensive to brew in terms of time and equipment and
             | benefit from industrial scale.
             | 
             | It is perfectly fine that I enjoy crisp piss and you like
             | your fruitcake beers.
        
               | Nursie wrote:
               | Commercial lagers are brewed very fast. Real lagering is
               | a long process, sure, but the big boys don't do any of
               | that. They have a very fast turnaround, often less than a
               | week.
               | 
               | Enjoy your lager if you like, I do from time to time, but
               | it's only one type of beer from a very wide spectrum. And
               | don't kid yourself you're getting a cold-aged beer in the
               | traditional style unless you've got evidence that's
               | what's really happening.
        
               | jcampbell1 wrote:
               | Tank space and cooling costs the big boys very little
               | because insulated factories and tanks the volume
               | increases with the cube and the cost increases with the
               | square. This is why lagers are made cheaply industrially,
               | and ales can be made inexpensively on a much smaller
               | scale.
               | 
               | The premium light lagers are tanked for a month. Try to
               | make anything resembling a light lager faster than that.
               | They don't have some super secret method that no one
               | knows about to make the style in a week. You are
               | wholesale making that up.
        
               | xtalx wrote:
               | Most craft breweries make lagers and pilsners that are
               | considerably better than "big beer." Local/craft beer
               | doesn't exclusively produce IPAs, Fruited Sours, and
               | Bourbon Barrel Aged Oatmeal stouts.
        
               | jcampbell1 wrote:
               | Craft lagers are out numbered 15:1 by ales because of the
               | tank space and cooling required. The esterification
               | reactions of ale yeasts are inherent to ales and the
               | brewing temperature. All Ales smell fruity. This is
               | really basic beer knowledge.
        
               | xtalx wrote:
               | That's fair, you clearly know more about beer than me. I
               | mostly just drink them. I don't care for most lagers but
               | a good one on a summer day is nice. I was just trying to
               | make the point that you don't have to choose Budweiser
               | over craft beer to get a lager. It's clear to me now that
               | you already know that.
        
               | nerdponx wrote:
               | And more importantly, this is why there are a few craft
               | lagers. It's not because they're too busy making IPAs,
               | it's because lagers specifically aren't easy to do at
               | smaller scale. There are plenty of craft ales that are
               | not IPAs.
        
               | Elora wrote:
               | What exactly are we calling ales here, isn't ale just
               | beer said another way (or, rather, the other way around)?
               | 
               | Speaking of lagers, good ones are hard to come by these
               | days. I like all things beer, and I enjoy all the IPAs,
               | fruited sours and all that, BUT I also much, much enjoy
               | quality lagers. As it is, in the US, it's rather hard to
               | find good ones, all the mass market ones are horrible (I
               | guess a Stella will work if that's absolutely the best
               | you can do, but everything else is even lower in terms of
               | quality).
               | 
               | I'm in the ironic position that I actually whole-
               | heartedly enjoy IPAs, but hate the IPA fad because it's
               | (mostly, just due to the sheer size of the IPA market)
               | keeping brewers from making good lagers. Can I have both
               | please?
        
               | jcampbell1 wrote:
               | Ale yeast and lager yeast are the two different types of
               | beer yeasts. There are a million lines of both, but ale
               | yeast ferments in about a week at 70f and produces esters
               | which have a fruity odor. Lager yeast operates at roughly
               | 55f and takes a month to ferment. Lagers have little odor
               | which some people like.
               | 
               | To me, lagers are like a steak and ales are like chicken
               | tikka. Both are good, and people preferring one or the
               | other is reasonable. Due to tank and cooling
               | requirements, lagers benefit from large scale production.
               | 
               | Something like Sam Adams is a good lager to compare
               | against an IPA. Just smell the difference and decide
               | which you like.
        
               | fknorangesite wrote:
               | > isn't ale just beer said another way
               | 
               | No. Ales are a subset of beers.
               | 
               | > I hate the IPA fad because it's keeping brewers from
               | making good lagers. Can I have both please?
               | 
               | Yes, of course. Seeing this so much in this thread makes
               | me feel like it's 2012 again. I travel a lot in North
               | America and like to check out the local breweries when I
               | do. There are always plenty of non-IPA options.
        
           | dnissley wrote:
           | Even more so than the beer itself, having a nice space for
           | people to meet up is often the biggest source of value. I'm
           | thinking of Optimism Brewing in Seattle, where the beer is
           | extremely mediocre at best, but the atmosphere is big, open,
           | and inviting.
        
       | mac3n wrote:
       | WSJ thinks we'd all be more efficiently served by a few very
       | large breweries, all owned by InBev (Budweiser, Michelob, Stella
       | Artois, Beck's)
        
         | Waterluvian wrote:
         | The article is critical of the quantity of microbreweries so it
         | must be pro-big-beer because everything is a partisan
         | conspiracy to slowly erode the things we like. Be afraid, be
         | angry, and elect someone who promises a quick fix.
        
         | bacchusracine wrote:
         | WSJ probably drinks wine and thinks anyone drinking beer is
         | part of the servant class.
        
           | atyppo wrote:
           | It's easy to dunk on the WSJ, but I doubt their writer is
           | making that much money...
        
             | ipqk wrote:
             | but it's ok, because they're just a temporarily embarrassed
             | millionaire.
        
           | cmrdporcupine wrote:
           | The world's most interesting wines are also made this way,
           | though.
           | 
           | It's a common bourgeois fetish to be all about Burgundy, but
           | Burgundy is full of small acreage growers and producers and
           | smaller co-ops.
           | 
           | My father's family is in the Mainz, Rhineland area of Germany
           | and when I've visited they've taken me out to the suburbs of
           | Mainz where there's little small operations right in the
           | middle of town serving it in their own little restaurants.
        
       | supernova87a wrote:
       | Interesting to me how different the beer vs. wine industries are,
       | in terms of the capital investment, the "demographics" of the
       | number and type of wineries vs. breweries, etc. Why wineries are
       | always located right there next to the vines, but breweries are
       | not. How long it takes the product to age, who consumes it, etc.
       | How it gets to market. I know there are tons of reasons behind
       | it, but just interesting that similar things you drink can have
       | such different dynamics behind them.
        
         | cmrdporcupine wrote:
         | The "located next to the vines" thing is more of a new world
         | thing ("estate winery"). As is the whole idea of a winery as a
         | tourist destination you go visit. Here in Ontario this model is
         | basically legislated into existence via minimum acreage
         | requirements and regulations around winery retail stores.
         | 
         | In the old world it's not always like this. Varies from region
         | to region. In some places, the wine is made by small
         | cooperative producers buying grapes from small growers etc.
         | 
         | Even in the North American "estate winery" model, large
         | quantities of the grapes are often bought from off-site
         | independent growers who don't have a winery themselves.
        
         | Turing_Machine wrote:
         | > Why wineries are always located right there next to the
         | vines, but breweries are not.
         | 
         | I would have figured that is because grains can be stored for
         | relatively long periods of time, while grapes cannot.
         | 
         | Is there another reason??
        
           | supernova87a wrote:
           | No, exactly -- how one is a fresh fruit derived thing, the
           | other is a stored grain thing. You don't find a lot of
           | breweries in farming country. Are breweries mainly a city
           | thing? Etc.
        
       | plasticchris wrote:
       | Recently a small brewery opened in my basement :) turns out home
       | brew is better and easier than I thought. I had to keep telling
       | myself people did this with wooden kegs and open fires, I can for
       | sure do it with modern steel stuff.
        
         | brenainn wrote:
         | Any words of wisdom? Trying out homebrewing is one of my goals
         | this year.
        
           | plasticchris wrote:
           | Don't buy glass carboys, anvil (blichmanns low cost brand) is
           | good for equipment. Use a brewing calculator, start with
           | extract, clean stuff well, and don't overcomplicate it. Don't
           | make anything too strongly flavored, after 5 gallons you will
           | hate it. 5 gallons is the best size for batches. Go straight
           | for kegs (corny kegs) like they use for soda. Northern brewer
           | is a good supplier (no affiliation just a happy customer). If
           | you really get into it buy hops by the pound.
           | 
           | Edit: almost forgot, temperature is the most important
           | ingredient in fermenting. Put your kegs and fermenter
           | somewhere that is a constant 60-70 degrees for ales. And
           | start with ales.
        
       | r053bud wrote:
       | This is similar to how a lot of wine works in Europe. Tons of
       | small producers typically making it for the love of the craft and
       | keeping it in the family. I see this as a win.
        
       | Nursie wrote:
       | Trying new beers and supporting local breweries is the whole
       | point! Endless variations and ideas.
       | 
       | Here in Western Australia there are tons, and the only 'glut' to
       | speak of is probably that the Hazy IPA market is saturated, and
       | it can be difficult to find some other styles. Red Ales are well
       | represented, and very sweet stouts. But a good dry Irish-style
       | stout? A nice spicy saison? A little harder.
        
       | zahma wrote:
       | About 15 years ago, we had a great brewery that changed the game,
       | and it felt like all of a sudden, there were so many options and
       | relatively little difference between them. There are only so many
       | IPAs with so many hops that a brewery can make. That got old
       | quickly, but I still look fondly upon the days of cracking open a
       | tall boy of Surly Furious.
       | 
       | I threw up my hands and chose a brewery that was local and
       | reliably high-quality, and I suspect many consumers will feel
       | overwhelmed with choice and short on time to peruse the dozens of
       | offerings at their beer purveyor. I wouldn't advise anyone to try
       | to hop into that sector with dreams of making it big.
       | 
       | The first movers got a great deal by tapping a fresh market and
       | forming early consumer followings. Those days are over. Consumers
       | don't need to have an allegiance to a microbrew because it's so
       | easy to get now, and unless your brew is God's very own nectar,
       | your business will be tenuous.
       | 
       | Some of the biggest names sold out to The Enemy (i.e. AB InBev),
       | like Goose Island or Wicked Weed. They got rich, and then their
       | product went to shit. I'm fairly certain I got formaldehyde
       | poisoning from a Devil's Backbone IPA bender (another AB InBev
       | casualty). So in support of my body, please make great beer --
       | just don't quit your day jobs.
       | 
       | (Sorry for the two awful puns. I swear they were unintended but I
       | left them in anyway after groaning.)
        
       | cantSpellSober wrote:
       | > _" The long-building craft-beer boom is showing signs of
       | slowing down_"
       | 
       | Do they provide any stats to back this up?
       | 
       | > _" Highland Brewing Co. [...] has gone from a basement brewery
       | to a hilltop 40-acre destination that produces more than 40,000
       | barrels annually and generates around $15 million in revenue"_
       | 
       | This statement appears to contradict the thesis...
       | 
       | All suffered under COVID, these stats indicate a small dip in
       | craft beer sales in 2020, but a rebound in 2021:
       | 
       | https://www.brewersassociation.org/statistics-and-data/natio...
       | 
       | https://www.statista.com/chart/10280/americas-brewery-boom/
        
       | indymike wrote:
       | I have no problem with widespread availability of great tasting,
       | local beers. This is a feature, not a bug.
        
       | viksit wrote:
       | here to appreciate the punny title for a second :))
        
       | micro_cam wrote:
       | In my state we have a lot of breweries that essentially just
       | operate as family friendly restaurants with bars. Like towns of a
       | few thousand people have multiple breweries.
       | 
       | It turns out liquor license laws make it much cheaper to open a
       | tasting room that serves food then a restaurant that serves beer.
       | Some can or bottle their beer but the business model can work
       | fine without major distribution. So people open breweries instead
       | of pizza parlors or steak houses.
        
         | jimmyjazz14 wrote:
         | North Carolina by chance?
        
           | micro_cam wrote:
           | Montana. Good to know there are other similar states though
        
         | fknorangesite wrote:
         | > In my state we have a lot of breweries that essentially just
         | operate as family friendly restaurants with bars
         | 
         | I'm in Canada, but yeah similar. The taproom might sell only a
         | few snacks or something (or maybe get a local food truck to
         | park outside), but people are also welcome to bring in outside
         | food: many times I'd go with friends for drinks and then order
         | a pizza or something delivered to the brewery.
        
           | gnabgib wrote:
           | Mostly due to our liquor laws (depends on province). But
           | you're basically required to supply food if you vend alcohol.
           | Bring your own food is the only way to satisfy this (or
           | selling nuts/bags of chips/random trash at the counter..
           | looking at you Cold Garden).
           | 
           | When you first open, the cost of a kitchen, storage,
           | utensils, and staff is a significant vig on top of your
           | brewery costs if you're not sure how many visitors you'll
           | get/whether they're looking for food.
        
         | tomcam wrote:
         | That scratches an old itch. I could not understand exactly the
         | scenario you describe: small towns with multiple breweries.
         | Never knew that loophole existed.
        
       | NickBusey wrote:
       | Eat local is a big movement. Drink local should be just as
       | important to those who drink. It supports the local economy. It's
       | more environmentally friendly. And the beer is usually way better
       | to boot.
        
         | spacemadness wrote:
         | This smells like large breweries asking their financial
         | journalist friends to start pushing back on small breweries
         | eating into their margins. Dedicating an article to "are too
         | many small breweries are a problem?" is a bit too convenient of
         | a slant when other options are on the table. "Stop creating
         | breweries, it's too risky. Drink InBev" essentially.
        
           | bacchusracine wrote:
           | >Drink InBev
           | 
           | I will honestly quit drinking altogether first. I hate these
           | big corpos who buy up what was a good brewer and a line with
           | several good beers and immediately start changing the recipes
           | and the process to destroy the beers. I've suffered through
           | it too many times now to call it anything but malicious. What
           | is the point in damaging an established brand, tarnishing an
           | established product which will bring in money from people
           | happy to pay for those flavors other than spite.
           | 
           | In twenty plus years I've only seen a buyout happen once
           | without it destroying the beers.
           | 
           | No, if my only choices are the swill that companies like
           | InBev produce I'll find something else to drink. It's about
           | the flavor. Take that away and I'm gone and so are a lot of
           | people.
        
             | spacemadness wrote:
             | I don't drink much anymore these days but I absolutely
             | noticed this when they bought Goose Island a long time ago.
             | The flavor changed overnight. They can't just buy everyone
             | to quell indie beer geekdom once and for all but they sure
             | continue to act like corporate bullies all the same.
        
               | bacchusracine wrote:
               | Goose Island was one of the examples I was thinking of. A
               | shame. It really was an almost overnight change. And for
               | what? To take a good series of beers and ruin them?
               | 
               | As I said, I'm here for the flavors. Take those away and
               | I leave with them.
        
               | nerdponx wrote:
               | Their goal is to make money.
               | 
               | They believed, correctly, that at least some consumers
               | wouldn't care about or even notice a change in recipe,
               | maybe because people broadly associate Goose Island with
               | good-quality craft beer and continue to buy it.
               | 
               | Consider this model:
               | 
               | Goose Island with the old recipe sold K units per year at
               | $P profit per unit. The new recipe can sell K/l units per
               | year at $Pxi, where l is the % of customers who switch
               | away and i is the % increase in profit. If K x P < (K/l)
               | x (Pxi) then it's profitable to switch to the new recipe.
        
         | z2h-a6n wrote:
         | While I'm all for drinking local beer, is there any available
         | data on whether it's actually more environmentally friendly
         | than beer made by larger producers? I can imagine some aspects
         | of the brewing process that would tip the scales either way,
         | e.g. economies of scale favoring large producers, potentially-
         | shorter supply chains favoring small producers.
        
       | anemoiac wrote:
       | Why do we need global-scale conglomerates to produce our beer???
       | I've always thought that local breweries serving locals should be
       | the default, not an exception.
        
       | robert2020 wrote:
       | I thought we passed peak craft beer years ago. Guess not!
        
       | atyppo wrote:
       | Perhaps every brewery branching out from uninspired IPAs would
       | help resolve the "issues of consumer selection." I get that
       | they're easy to make and harder to screw up, but they're
       | literally the only thing available at a lot of places.
        
         | fknorangesite wrote:
         | > they're literally the only thing available at a lot of
         | places.
         | 
         | I'm surprised to see this sentiment. It certainly rang true a
         | decade+ ago, but back then craft breweries were more novel, and
         | there was more [over]reaction to bland, mass-produced lagers,
         | etc.
         | 
         | Sours were really trendy rather than IPAs just pre-pandemic,
         | and these days in my experience most places have a pretty
         | varied selection of types available.
        
           | atyppo wrote:
           | I'm in NYC and my odds of finding a craft beer that isn't an
           | IPA (or possibly sour) are slim to none if I'm not at a beer
           | bar like Proletariat or Burp Castle (two random examples).
           | I've managed to find one brewery I really like in New
           | Hampshire called Schilling Beer Co that mostly focuses on
           | European beers and has a really good food menu as well. It's
           | a shame more places don't have more diverse beer menus.
        
           | the_only_law wrote:
           | Personally I'd like to see more stouts that aren't super
           | heavy dessert stouts.
        
         | bwanab wrote:
         | I totally agree. There are so many good beer and ale styles. I
         | love IPA, but please let's have some variety.
        
       | iamben wrote:
       | My brother works for an indy brewery in the UK. It's super hard
       | work, but he loves the job. The industry is very tough and many
       | of the independent players don't make it. Those who do are often
       | swallowed by one of the big names or become everything they set
       | out not to be (looking at you, Brewdog).
        
       | chihuahua wrote:
       | https://archive.ph/uOEBE
        
       | jvolkman wrote:
       | There are ~15 breweries within two miles of my house in Seattle.
        
         | datavirtue wrote:
         | Same in Cincinnati. Far more breweries than Starbucks...and we
         | have a LOT of Starbucks.
        
       | Overtonwindow wrote:
       | If people are drinking then the breweries are making money... If
       | people didn't buy the beer, the breweries wouldn't exist.
        
         | tialaramex wrote:
         | For legal reasons it can make more sense to operate a brewery
         | than it might do all else being equal.
         | 
         | In the UK for example, suppose I think this district of my city
         | could use an establishment where people can buy booze in the
         | evening, relax, maybe buy a meal, even listen to some live
         | music once in a while, and I have my eye on a mid-size
         | industrial unit in a fairly populated part of town with few
         | nearby rivals. Easy right?
         | 
         | Nope, that unit is not authorised for this purpose, and all
         | three things I want to do (sell booze, sell food, live
         | entertainment) require licenses issued by local government. I'm
         | going to spend a _lot_ of money on lawyers and fixers to smooth
         | the path to making this happen, and at any time there might be
         | objections which blow it up completely, no refunds.
         | 
         | But, if I'm setting up a _brewery_ well, that 's an authorised
         | purpose of an industrial unit, and under modern laws the
         | brewery is allowed to sell booze. So now I can open, initially
         | I cut a deal with a decent local food truck to park "outside"
         | and piggyback on their food license, then if we stay afloat for
         | a few months with no major incidents I apply for a license
         | variation to offer food on site too, with historical practice
         | on my side. I can have the same successful business, but at
         | much lower risk by starting a "brewery" even if brewing booze
         | barely breaks even.
        
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