A Brewing Debate

Are you saying beer is the new wine?
Absolutely. If the success of wine is the measure of something we want to achieve, then yes. But beer has the potential to go far beyond wine, because there is so much variety. There are many directions beside white and red and light and heavy.

Could that lead to a hierarchy system of beer, where price indicates quality?
It's already happening. There are extreme beers that are expensive to make and take a lot of time. Brewers could not possibly offer them without charging $10 to $20 for a six-pack. But people know that and are willing to pay for good, high-quality beer. Obviously, the volume is not tremendous and there's a smaller market for that. But look, it's becoming easy to realize that spending $20 for a world-class six-pack of beer gets you a much higher-quality product than wine you could get for the same amount.

But most people buy based on price, especially younger people who can't afford the same appreciation for quality.
Look, these are different times now. People talk about beer now like they never knew about beer before. Over the past few years younger beer drinkers have embraced the idea that they're willing to shell out a few more bucks for a six-pack of beer that they really enjoy and something they can really relate to, whereas that was a stretch four or five years ago. Now there are more people in their 20s—of drinking age—who are stretching their dollar just in order to experience craft beer and craft brewing.

Is there an antagonistic relationship between beer and wine producers?
Probably, but at a pretty low level. We respect what wine has done. We're trying to do what they did 30 years ago: raise the level of awareness of a beverage that people don't understand and deserves more respect.

What don't most people understand about beer? Sell me on it.
It's the whole idea of discovering that there's a whole world of flavor and diversity. Beer as a beverage offers an opportunity to fall in love with a beverage. Beer offers an opportunity to comfortably explore the boundaries people have put around them as far as their comfort level. Discovering something new is a big part of it.

The food shortage that has hit within past months. Is that affecting microbrew production?
Yes, and a lot of recent factors are too. Energy drives up the cost of malt; transportation now costs more. Glass is a very energy-intensive process to make, and the cost of barley is also going up.

All of which means the selling price will go up.
It's really interesting. The price is going to go up, just like it has been. But [consumption] is still growing, and beer drinkers are still finding enough value in craft brewers to pay the extra dollar or two. It's the psychological and the real value that people are perceiving. And that's what craft beer is all about: perceived value.

© 2008