Crafty Selling Points (and Pints)
Lead to Smooth Beer Sales

    Before you talk about craft beer, it’s important to know precisely what it is.
    Craft beers are defined as much by the production level of the brewery as the actual product itself. The origins of this category of brew came from the microbrewery movement. Once microbreweries started getting bigger, a new name was needed for their beer.
    The Brewers Association defines microbreweries as any brewery producing less than 15,000 barrels (465,000 gallons) a year. Breweries that make the same high-quality product, but on a larger scale, are called craft brewers, according to the Brewer Association, and tend to make all-malt beers, compared to many domestics which use rice, corn and sugar adjuncts.
    While craft beer is becoming more familiar to the American public and to the bar-going guest, it’s not a new product in our country at all. In fact, craft brewing has a much longer heritage in America than people realize — and the modernization of this is where the real revenue story begins.

Tradition Meets Technology  
    “Craft beer has always been a part of American culture,” says Craig Purser, president of the National Beer Wholesalers Association. “Its availability to consumers, however, greatly increased with the repeal of Prohibition when the American malt beverage distribution system was put in place.”
    The Jacob Leinenkugel Brewing Co. is a good example of today’s craft brewing outfit. The Chippewa Falls, Wis.-based brewery has been making high quality beers for 139 years, expanding from a Midwest power to more of a national brand. The company’s growth has shown in its increased offerings. It recently brought out Leinenkugel’s Sunset Wheat in 2006, just after the October 2005 release of the Leinenkugel’s Apple Spice, which was the most successful seasonal launch in the brand’s history.
    Craft brewing is giving the American public more choices. Yeah, it’s great to have two or three good beers to choose from, but it’s even better to have 20 or 30 to peruse. Craft beer gives patrons these choices, and that has been key in its recent popularity and profitability.
    “Beer distributors provide smaller, more unique beers a vehicle to market, thus providing consumers with the choice they desire at a great value,” Purser says. “There are currently thousands of different types and styles of beer available in your neighborhood store –– in fact, few other products can boast such a tremendous selection.”

The Latest Dish  
    Consequently, craft beer sales now are growing at their fastest pace in a decade. In America, sales last year increased by 9 percent, the largest jump since 1996, according to the NWBA’s numbers.
    The Brewers Association shows that in addition to 2005’s growth, 2004 was a solid year for craft beer, with that segment of the industry enjoying a 7 percent growth.
    “It’s all a part of a growing interest in beer flavor by the American consumer,” Daniels says. “There’s a growing sophistication about what beer can offer in terms of flavor.”
    Craft beers aren’t just doing well at the bar; they’re also finding their way into the kitchen. “Consumers are discovering that beer is not only a refreshing beverage, but may also serve as a cooking ingredient, adding a different and distinctive flavor to favorite recipes,” Purser says.
    “The dining experience can also be enhanced by pairing different types of beer with food. The vast array of great beers available on the market provides opportunities for excellent food and beer pairings.”
    Recipes and tips on beer pairings are readily available online, such as at nbwa.org, and pubs’, taverns’ and other venues’ operators across the country have been taking notice of this trend and opportunity. This is another way to raise awareness for certain beers.

A Component to Consider   
    Within the craft brewing market, there is another movement going on, as well. The Brewers Association hosts the Great American Beer Festival in Denver each fall. Daniels has seen the hoppiness, or bitterness, of entries rise throughout the years, with Indian Pale Ales now representing the latest trend in craft brewing.
    “They’ve sort of taken over for the Pale Ale,” Daniels says. “There’s definitely a shift toward a hoppier beer and a bigger  beer — in terms of alcohol.”
    It seems that more and more American beer drinkers are looking for more and more flavor from their pints and bottles of brew. The craft beer market is there to help fill that need, and bar owners looking for a competitive edge may want to consider the role this category can play in their cumulative profits. NCB