Category: Dark Star

| Beer, Craft Beer, Dark Star, Uncategorised

Some Important Musings on the Nature of Craft Beer

Seriously, these Musings are Very IMPORTANT. 

A picture of a beer that is a craft beer, yesterday.

 

One of the more curious comments I’ve seen repeated by various people this week in the wake of Dark Star being bought by Fuller’s is the idea that Dark Star is/was not a craft brewer because it is mainly known for producing cask ale. The idea that cask ale is not and can not be craft beer is an intriguing one, and one that I don’t fully understand. So if you subscribe to this point of view, I wonder if you can help me understand it by answering the following questions? Thanks!

  1. 1. If a small, independent brewery produces beer across a variety of formats, what percentage of cask ale is it allowed to produce before it no longer counts as a craft brewery?

2. If that brewery produces both keg and cask beers, are its keg beers craft and its cask beers not craft?

3. Where do cans fit into this?

4. Or bottles?

  1. 5. If, say, Magic Rock brews a beer called High Wire and puts some of it into cask and some if it into keg, is the cask stuff not craft and the keg stuff craft?

6. If the cask High Wire is not craft but the keg High Wire is craft, how does that work? Does High Wire start off as a craft beer in the brewhouse, and when the cask stuff gets packaged into the cask it stops being craft? Or is it the other way round: High Wire starts off not being craft, but when the keg stuff gets packaged into kegs, that’s when it becomes craft?

7. What is it about the cask process/format that stops it from being craft? Is it the live yeast that requires more skill, care and attention to look after? Is it the container itself, which is more traditional than a pressurised keg? Is it the shape of the cask? Or is it the sound of the word ‘cask’, which doesn’t sound craft enough?

8. If Greene King were to produce a 5.5% west coast-style pale ale using acidulated, Golden Promise, Munich, Vienna malts and Cascade, Centennial, Chinook, Citra, Columbus and Magnum hops which gave it mango, lychee and lip-smacking grapefruit flavours that harmonised against a smoothly composed malt base, which develops into a crisply bitter finish, and they called it Why Hire, would that be craft or not? If not, would it help if they packaged some of it in key kegs?

  1. 9. If you buy a can of your favourite craft beer on Monday and the brewery gets bought by a corporate brewer on Tuesday, is the can of beer in your fridge still craft or not?

10. If it’s not, when does it stop being craft? When the deal was done? When you found out about the deal? If the deal was done last Friday, before you bought it on Monday, but it wasn’t announced until Tuesday, was your can of beer still craft when you bought it or not? Are you allowed to revise its status retrospectively? If you are, what authority or qualifications do you need to be able to make that call?

I look forward to reading your answers!

 

A picture of a beer that is not a craft beer, yesterday.

| Anheuser-Busch, Beer, Craft Beer, Dark Star, Fuller's, The Business End

What Do You Do When Your Favourite Brewery Gets Sold To The Man?

Yesterday, it was announced that Dark Star Brewing had been bought by Fuller’s. In a much longer reader than I’d anticipated, here are some thoughts on how we might process such an event if it’s our favourite brewery being acquired…

                      You say ending, they say new beginning. Who’s right?

 

In every business, companies get bought and sold all the time. Brewing is, when all is said and done, a business first and foremost, in that if you don’t make more money by selling stuff than you spend on making it, you cannot survive.

But to many, craft brewing often feels like something more than just a business. It’s also a movement. Our favourite breweries often represent a set of principles and attitudes, a lifestyle, perhaps even a moral point of view, as well as making beers we enjoy drinking. This might entail a commitment to experimentation over convention, independence over conformity, living large rather than being cautious, or some other kind of anti-establishment or anti-corporate stance. Many craft beer fans are stuck in corporate jobs themselves, unable or unwilling to take their own risky leap into the unknown, and so they live vicariously through their favourite brewers, buying their beers to support principled decisions and actions they identify with and aspire to.

When a brewery gets bought, depending on the circumstances, it can feel as though people you believed in to live the dream on your behalf have turned out to be just like everyone else – they’ve disillusioned you and let you down. Alternatively, it may be that they stood heroically for as long and they could, but eventually had no choice to succumb, proving that a rebellious, anti-establishment stance is always ultimately doomed to failure.

These are not always rational or fair reactions, and they’re certainly not always justified, but given the high degree of emotional involvement around craft brewing, they’re entirely understandable.

Craft brewers have a long history of collaboration with each other, but rarely, if ever, do two craft breweries of comparable size decide to merge to further their mutual interest. Invariably, it’s a case of a larger, older, more conservative and established business buying a smaller, younger, more adventurous one. And that’s always going to set the alarm bells ringing. Instinctively, that alarm is rationalised through a fear that the beers will change: the accountants and marketing people will get involved. They’ll cut costs so the beer won’t be as good. They’ll dumb it down to appeal to a mass market. They’ll close the brewery down and brew it in a big factory instead, and it will never taste the same. Then you move on to the company itself: people will lose their jobs, and I care about these people (even if I’ve never met them.) But it’s the emotional bond, the identification with the brewery, that underlies such concerns.

But such takeovers are going to become increasingly common over the next few years. Craft beer as an overall segment looks set to grow indefinitely, even if the rate of that growth will slow down as the scene matures. But the number of outlets available in which to sell craft beer are arguably fixed – the number of pubs is declining. Supermarkets are steady. Specialist bottle shops are growing, as are alternative outlets such and festivals and special events. But these account for a tiny proportion of the total route to market. We’ve had such an incredible growth in the number of breweries in the UK – more than trebling since the millennium – that we have a massively increasing number of breweries chasing a limited number of fonts on the bar and spaces on the shelf. The most exciting – and, it has to be said, the most fashionable – breweries have no trouble securing their route to market. But many struggle to get space. Even when they get a place on the bar, the fickle consumer says, ‘Yes, I’ve had that one, what else have you got?’ and there’s always another one waiting to take their place.

Some brewers just can’t make a living. Others are getting by, but want to grow so they can make themselves and their families more financially comfortable, or hire more people so they can work fewer than eighty hours a week. Growth takes investment, and investment requires more growth to pay it off – if you can secure it in the first place in an uncertain financial climate when you’re one of several hundred breweries seeking it. For some, the answer is crowdfunding, but how many breweries are you going to invest in? Sometimes, selling simply makes most sense. And like I said, it happens in every single industry.

So when your favourite brewery goes, is it a catastrophe or is it salvation? Ultimately, only time will tell. I hate making predictions because they’re often wrong. But there are some questions you can ask that might provide clues – if you can discern the true answers beneath the spin, that is…

 

Did the brewery want to sell or not?

If it’s a hostile takeover, you can be sure there will be blood. But such takeovers usually only take place if both companies are already listed on the stock exchange. If a brewery is privately owned, no one can force them to sell. Someone can make them an offer they can’t refuse (commonly known as ‘a Camden’) but there are two actors in any sale, and too often we just look at is as the big guy snapping up the small guy.

 

What’s in it for the seller?

Obviously, for the individuals running the brewery, there’s personal wealth. If you’re doing a well-paid job to support yourself and a family, I’d think very carefully about accusing someone of ‘selling out’ on this score. Those people likely put their houses and all their savings on the line to build this thing, and worked longer hours, for less money, than you ever have.

But that’s rarely the only reason for selling – there can be benefits for the brewery too. That beer you love is getting access to a bigger sales force with a wider distribution. The biggest limit on a brewery’s growth is its fermentation capacity. New fermentation vessels are expensive. When Molson Coors bought Sharp’s, many predicted the Cornish brewery would be closed by its new owners. Instead, those new owners delivered lots of shiny new fermenters. OK, so bottled Doom Bar is now brewed in Burton, where there’s greater bottling capacity, but six years after the acquisition, Sharp’s cask ale is still brewing in Cornwall (like it or not.)

On the other hand, is there any dissent in the ranks? When Elysian was bought by A-B Inbev, while the official line was delight around ‘joining forces’, the head brewer quickly walked. Watching how long the key people stick around beyond any mandatory period is usually a good indicator of whether or not the sale was just for the money.

 

What’s in its for the buyer?

It does seem as though the strategies of the big guys are changing. Historically in the UK, most pubs were owned by breweries. When a brewery was taken over, invariably it was so the acquirer could get their hands on the pubs, and the brewery itself would invariably be closed down (take a bow, Greene King.) It’s also common practice traditionally in any market to buy an annoying competitor just to get rid of them, running down a business you couldn’t beat in the marketplace.

If a non-craft brewery buys a craft brewery that doesn’t own a big pub estate, they want it for the beers themselves and/or for the brand. They want it because they can’t brew and sell those beers within their existing brand portfolio. Now, they don’t lack the brewing expertise to do that – they probably have far better equipment and access to higher quality raw ingredients, and it’s easy (and much cheaper) for them to poach a brewer from a small craft brewery rather than buy the whole thing. What they’re paying for is credibility, an established audience, goodwill, and to a lesser extent, recipes (which they could replicate pretty closely if they had to.)

But the main reason bigger breweries buy smaller ones is that their systems and scale prevent them from acting in the same way as smaller, nimbler, craft brands. Processes designed to sell big commodity brands can’t keep pace with the craft market. So when they do buy these breweries, they tend to run them as separate entities that don’t conform to the same practices as the big brands. A-B Inbev’s many craft acquisitions sit in a separate craft division with its own CEO. Carlsberg is running London Fields as a separate company. Heineken knows it hasn’t a clue about cask ale, so when it acquired Scottish brewery Caledonian, they went big on improving health and safety but apart from that they left the brewhouse alone. These companies aren’t being altruistic about this – they know that if they tried to run it directly, they’d fuck up the thing they just paid a lot of money for.

If the purchased brewery’s brands start getting brewed in the big brewery, using big brewery logistics, there may be some cause for concern (or they may actually be improved on more modern kit.) But if the beer is still being made in the original brewery, by the same people under different management, there’s a chance that even your understandable suspicion that the recipe may be dumbed down is unfounded. I hate the rebranding of Goose Island IPA as ‘Goose’, but Bourbon County Stout, and the range of wood-aged beers produced by Goose Island, remain at least as outstanding as they ever were.

The real threat of these acquisitions is to the broader world of craft, and is a little more insidious and harder to detect. The brewer wants your favourite craft brand because they don’t have anything similar themselves. They don’t want to fuck it up. The brewhouse is probably safe. But then it gets into the hands of an aggressive sales force. The brand might be discounted to push it into wider distribution, which is great for a skint drinker but can take the sheen off the brand’s standing. Or, if it’s a very popular brand, it might be used as a bargaining chip: “Yeah, we’ll sell you the super-cool, sexy craft beer brand we just acquired, but only if you permanently take these other craft beer brands off the bar, and stock our shitty lager as well.” Your favourite beer is still safe, but the brand is tarnished by the new company it keeps, and by the fact that it’s no longer allowed to mix with its old mates. This may sound like paranoia, but it’s common practice. When I worked on Stella Artois, I saw first-hand how both aggressive discounting and aggressive package deals were used to massively inflate the growth of what had been a niche, cult brand with a good deal of credibility. A few years later, it became what we know it to be today.

 

 

What past form does the buyer have?

So is your favourite craft beer brand going to go down this route or not? Well,  there’s big and big. I’m always confused by the outcry when Duvel Moortgat buys a craft brewery, because Duvel Moortgat makes some of the best beers in the world. One Dark Star fan lamented yesterday on social media that his favourite brewery is now part of just another corporate behemoth. Fuller’s may be many things, but it’s a minnow in the world of corporate beer. Fuller’s has also demonstrated a commitment to the world and ethos of craft beer matched by few of its peers. Yes, Fuller’s also closed the Gales brewery and quietly retired some of its brands after buying that, but the circumstances were different than they are with Dark Star.

Ultimately, each case has to be judged individually.

 

As craft brewery acquisitions gather pace, there’s an increasing body of evidence to suggest that the demise in the quality and integrity of a once-loved brand is by no means guaranteed. But if your true objection to acquisitions is that they run against the ethos of whatever you define  ‘craft beer’ to be, that big corporates should have no place on the indie scene, then prepare for further disappointment: ultimately, everyone is for sale.