The term “craft
beer” is confusing for many beer drinkers, both professional and amateur. So let’s clear things up.
The first
thing to understand is who defines "craft". The Brewers Association is a
501(c)(6) organization; it is a business league that represents small and
independent American brewers. As of
December 2013, around 3,000 breweries were members of the Brewers Association,
including 49 of the 50 largest craft breweries (I believe that August Schell
Brewing in Minnesota is the non-member; more on that in a second). As the primary representative organization of
“craft brewers”, membership votes to define the term “craft brewery.”
The three
requirements of a “craft brewery” are: small, independent, and
traditional.
So what is
traditional?
“A brewer that
has a majority of its total beverage alcohol volume in beers whose flavor
derives from traditional or innovative brewing ingredients and their
fermentation. Flavored malt beverages (FMBs) are not considered beers.”
That is the
current Brewers Association description of “tradition”. It used to be that “traditional” excluded adjunct brewing. Adjuncts are unmalted grains
that can be used to add specific qualities to a beer, but it is frequently used
to cut costs. But in March 2014, it was
decided to allow adjunct brewing as part of traditional. The use of non-malted ingredients in brewing
has been around for a long time and the Brewers Association did not want to
penalize craft breweries that wanted to brew recipes that required adjuncts.
When this
change was made, several breweries were brought into the Brewers Association
fold. The biggest brewery that now meets
the “craft brewery” definition is D. G. Yuengling and Sons, a prominent
east-coast brewery. In 2012, the Brewers
Association made headlines when it released a list of breweries that did not meet the definition of craft; the phrase “craft vs. crafty” was frequently used. But with the new definition, Yuengling is now
a craft brewery.
Another
brewery that now meets the craft brewery definition established by the Brewers
Association because of the change in definition is August Schell Brewing Company. When the “craft vs. crafty” list came out,
August Schell was the most vocal in expressing displeasure with the Brewers Association. So it is not a surprise
that, despite meeting the definition of a craft brewery, August Schell is not
found on the Brewers Association roster of member breweries.
So what is
independent?
“Less than
25 percent of the craft brewery is owned or controlled (or equivalent economic
interest) by a beverage alcohol industry member that is not itself a craft
brewer.”
This
definition means that a larger brewery (like InBev Anheuser-Busch and Miller
Coors) or a spirit producer owns 25% or more of a brewery, it cannot be a craft
brewery according to the Brewers Association.
It means that a beer produced by a non-craft brewery, no matter the size
of batches or the ingredients, is not a craft beer. It also means that if a craft brewery sells a
large enough business interest to a non-craft brewery, it is no longer a craft
brewery. A well known example is Goose
Island which was partially owned, and is now wholly owned, by Anheuser-Busch. Goose Island is well known for the production
of Belgian-style and barrel-aged beers. But
Goose Island is no longer a craft brewery.
So what is
small?
“Annual
production of 6 million barrels of beer or less (approximately 3 percent of
U.S. annual sales). Beer production is attributed to the rules of alternating
proprietorship.”
The Brewers
Association raised the limit from 2 million barrels to 6 million barrels in
2010. The reason they provided was that
they did not want to punish the success of craft breweries. The increase in the limit allows Boston Beer
Company, the producer of Sam Adams, to remain a craft brewery. Despite the increase in the limit, 6 million
barrels of beer per year is still only 3 percent of beer sales in the United
States.
So what?
What this
means to the beer drinker will vary.
Some drinkers are all about drinking local, though it should be pointed
out that the majority of malted barley and hops come from the same companies
that supply non-local breweries, both craft and non-craft.
Some
drinkers will say that they are all about quality, though it should be pointed
out that Anheuser-Busch, Miller, and Coors have incredibly large and thorough
quality control and assurance groups in their companies. It is difficult to produce the same beer over
and over. And over.
Some
drinkers only drink “microbrews” or other small batch productions. But as my friend Christine points out,
breweries like Boston Beer has multiple, large breweries. Comparing the size of a Boston Beer Company
brewery to Indiana’s largest breweries, like Three Floyds, Sun King, and
Upland, is like comparing a horse to a mouse.
Other craft breweries like Sierra Nevada, Stone, Lagunitas, and New
Belgium are constructing or planning additional breweries to meet nationwide
demand. Also consider brewpub chains
like Ram and Rock Bottom who have multiple small breweries across the country.
The reality
is that the definitions and descriptions for a brewery are subject to
change. The Brewers Association has
changed its definition for a craft brewery on multiple occasions. Even the State of Indiana changes the
definition of a “small brewer” from time to time. This makes the discussion of things like craft,
small, artisanal, and quality difficult.
And maybe,
as consumers, that is okay. A person may
show preference to a brewery based on size or location, but in the end, the
reason for repeat purchases is completely subjective: they buy the beer because
they like the beer. There are many ways to differentiate between
beers brewed by Ted Miller and beers brewed by Miller Brewing Company, but
definitions mean very little to the consumer that likes those beers.
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