Category: Social Trends

| Beer, Craft Beer, Journalism, Media bollocks, Social Trends, The Business End

The Premature Demise of Craft Beer: How Fake News Really Works

You may well have seen recent news stories on how craft beer is over, that it’s entered a period of decline. There’s just one problem: this is completely untrue. 

Remember the olden days, when these guys were reporting annual volume growth of 55%? How times have changed since, er, 22nd March this year.

 

“Have you noticed a decline in the demand for craft beer? Why do you think this is?”

I stared at the question, cognitive dissonance making me feel momentarily floaty. Was it a trick question? That ‘why do you think this is?’ implied the person asking the question was obviously expecting me to say yes. This was confirmed by a follow up question that asked me to comment on possible reasons why craft beer is “not as popular as it once was.”

A professional journalist working for Munchies – the foodie bit of Vice.com – had somehow become convinced that craft beer was over, and was asking me, via questions posed to the British Guild of Beer Writers, why I thought this had happened.

The reason I was confused is that it hasn’t happened – not yet. When I got these questions, I’d just delivered the keynote speech to the SIBA conference. To write it, I’d had to do a lot of digging. I’d discovered that craft beer volume increased by 23 per cent last year, and that analysts are predicting continued growth until at least 2021. I’d learned that business leaders in the food and beverage industry had named craft beer the most important trend across the whole of food and drink – comfortably ahead of low alcohol drinks, artisan coffee and craft spirits – for the fifth year running. I’d found that seven million British people – equivalent to 14% of the total adult population, or one in four people who drink any alcohol at all – claim to drink craft beer on a regular basis when they’re out in pubs, bars or restaurants. And yet here was a food and drink website believing that craft beer was in decline.

I decided to work out how this had happened.

Munchies was basing its story on a trade press article in the Morning Advertiser, which ran with the headline, ‘Craft Beer Fatigue is Setting In.’ No ambiguity there: no ‘claims so-and-so’, just a simple statement of fact. The leading trade magazine for the beer and pub industry was categorically stating that we’re tired of craft beer. And the MA wasn’t alone: in the same week, Beer & Brewer magazine ran with ‘Craft beer fatigue sends APAC [Asia and Pacific] consumer elsewhere‘, while Catering Today ran ‘Craft Beers Fail to Impress Consumers’.

Read these articles, and none of them actually say that craft beer has gone into decline. But a cursory skim of the headline and opening lines of copy, without going into the detail of the claims, could reasonably lead to the impression that craft beer is in decline.

The basis for all these stories is a press release from a market research company called GlobalData, which runs with the title ‘Craft beer fatigue is sending beer and cider consumers in APAC in search of new options.’ Again, that seems pretty definite. The first line of the press release reads, “Alcoholic beverage consumers tend to be novelty seeking, but constant bombardment with craft launches and unusual flavors has led consumers to feel that they are overloaded with choice.” But once again, while a cursory reading of the headline and first few lines of copy would cause any reasonable person to assume craft beer is now in decline, the body of the press release – which is published to promote a new report that costs $1450 to access – doesn’t actually contain any data that supports the idea that craft beer is in decline.

So what does it actually say?

Well, there are certainly some interesting points, even if none of them are exactly news to anyone involved in craft beer.

The main point – the one that seems to be offered in direct support of the headline claims – is that “words such as craft and artisanal are just an excuse to charge extra.” In the Asia-Pacific region – and in North America – 46% of survey respondents agreed with this statement. What none of the UK-based publications who reported the story will tell you is that in Europe, this figure falls to 38% – the lowest of any region in the world. Now, those are, as report author Thomas Vierhile told me in an email, “significant percentages”. But they are still minorities. And as anyone who has been involved in a craft beer discussion on social media or been below the line of a beer story in any national newspaper can attest, it’s hardly new – people have been grumbling about this for years. I first wrote about it for the Morning Advertiser three years ago. At the time, I said that it was a threat to the growth to craft beer, and I still believe it is. But it’s quite a leap to get from there to the claim that people are already walking away from craft beer because of it. This wasn’t true then, and I doubt it’s true now. The research data released by GlobalData’s does not show it to be true, but their press release claims it is.

The press release and summary for the report make two further solid claims. The report states that consumers are becoming more interested in experiences that simple products, citing that 57% of consumers (in Asia Pacific) prefer new experiences to new products. I totally agree, and have done since I worked in advertising twenty years ago, when we said this regularly to our clients. Craft brewers understand this perfectly which is why, instead of building their brands with flashy TV ads (which they couldn’t afford anyway) the most successful craft brewers over the last ten years have built their popularity with experiences and events such as meet the brewer evenings and tap takeovers, limited edition and rare bottle launches, and the growing number and range of beer festivals and other events. The experience economy is a driver of craft beer’s growth – not a threat to it.

Finally, the GlobalData report states that healthier lifestyles and a growing interest in lower alcohol alternatives is a major threat to craft beer. In the Asia Pacific region – it’s not clear why this is the geographic emphasis for a report that did its research globally, unless it could be that this is where the highest figures are – 51% of consumers say health claims influence their choice of alcoholic drinks (hang on – I thought alcoholic drinks weren’t allowed to make any health claims?) and 53% say they plan on cutting down on booze for health reasons. These figures fall to 38% and 37% if you look at the global data, but never mind that. I doubt anyone would disagree that this is a significant trend. That’s why, unless craft brewers start to develop lower strength session beers, explore concepts such as table beer and start to make some decent tasting low/no alcohol beers,  they could be heading for a fall. Oh no, hang on – my mistake – these have been some of the most dynamic trends driving craft beer’s development for several years now. Never mind.

So: a level of cynicism about the appropriation of the term ‘craft beer’ to charge higher prices, growing interest in experiences over products, and growing interest in healthier drinks – all of which the craft beer industry has known about and acted upon for years – are being added together by GlobalData to create the claim that drinkers feel ‘overloaded with choice’ and that this has led to a ‘devaluation of the “craft” concept’ which is now ‘sending beer and cider consumers… in search of new options’. This, in turn, has led drinks trade press journalists to state definitively that we are suffering craft beer fatigue, and this in turn has led at least one consumer food and drink publication to ask why craft beer is in decline before eventually running with the headline ‘Is Craft Beer Dying?

I hope my answers to the questions I was posed by Munchies helped get that title turned into a question rather than a statement. But still, this is how fake news happens. In researching this piece, Google took me to articles going back several years claiming that the craft boom is over, when hindsight shows it wasn’t. GlobalData was behind a similar flurry of these back in August last year,  but they’re not the only culprits. I chose the picture of BrewDog, above, because on the same day Munchies asked if craft beer was dying, the Scottish craft beer pioneer posted results showing 55% volume growth in 2017. Some commentators pointed out that this is lower than in previous years. As if 55% growth in a year is somehow a bit shit.

“We are not necessarily saying that craft beer has gone into decline,” admitted GlobalData’s Thomas Vierhile when I challenged the company over their claims. “But we are saying that the category is edging closer to thin ice as the craft concept becomes stretched, leading more consumers to express skepticism toward the concept.”

I think that’s absolutely fair enough.

He continued, “As popular as craft beer is, it does not appear to be moving the global beer consumption needle and it may not be the savior for the beer industry that some may perceive it to be,” citing the fact that while other categories of alcoholic drinks are growing, the total global beer market is shrinking. This means that either the growth craft beer is experiencing by recruiting new drinkers to beer is not enough to compensate for existing beer drinkers drinking less/switching to other drinks, or that craft is cannibalising mainstream beer, taking volume from the big boys within a declining market.

That’s certainly food for thought, and craft brewers should certainly take note of the report’s genuine findings stated above, if for some reason they weren’t already aware of them. But GlobalData’s press release – which I’m sure Thomas Vierhile didn’t write – categorically states that consumers are suffering craft beer fatigue and are going looking for something else instead. The data presented simply does not show this at all, says nothing about a ‘bombardment of new launches or unusual flavours’, and presents no evidence that consumers are walking away from the category. But these claims have been picked up and repeated, without question.

So why would a company that produces market research reports that cost $1450 a pop want to spread false claims about craft beer? Well I dunno, but who in the beer industry can afford to spend $1450 on a 57-page market report? And what would companies like that feel about craft beer? What would they want to happen to it? I’m just spitballing here, merely speculating to create specious claims. But that does seem to be par for the course these days.

| Alcohol, Neo-prohibitionism, Social Trends

Remembering Lunchtime Drinking

So Lloyds of London announced last week that it is banning its employees from drinking at lunchtime.

Under strict new rules, anyone found to have enjoyed a pint between the hours of 9 to 5 faces the prospect of being fired for ‘gross misconduct.’

Having frequently been in City of London pubs at the same time as some of these often boorish drinkers, my first thought was not to spare them any tears. The move comes in response to 50% of disciplinary incidents at the firm apparently having to do with staff members being over-refreshed.

But whatever your views on our financial colleagues, just let that phrase roll around for a second: drinking alcohol during your lunch break is ‘gross misconduct’. Not getting drunk. Not failing to complete your job because you’re pissed. But having one drink.

This ban is symbolic of the ever tightening stigma of drinking alcohol – and of changing public opinion – and I fear it’s the first of many similar measures to come.

 

But according to YouGov, Lloyds are in line with public opinion. I guess I’m not.

I started my first job in 1991, at an advertising agency in Central London. At that time advertising had a glamorous reputation, but that wasn’t the reason I joined: I just wanted a job that would be different every day, one that would be interesting and intellectually challenging, and accountancy (which is what my university tried to push everyone into) didn’t seem to offer that.

I started as a graduate trainee in the middle of a recession, and to most of the people in advertising, this was the first recession they’d noticed, because it was the first that had had a serious impact on the south east. (Coming from Barnsley, I’d just assumed the early 90s recession was simply a continuation of the early 80s recession – I had no idea that some parts of the country had enjoyed a boom between the two.)

So advertising in the early 1990s was like turning up to a splendid mansion on a Monday morning and finding a Rolls Royce in the swimming pool, fag butts stubbed out in champagne glasses, TVs still smoking from having their screens smashed in, and my new bosses minesweeping empty bottles and greeting me with, “Man, I can’t believe you missed the eighties. It was so great here then. We had such a party, a party like you wouldn’t believe. Where were you? Now get this mess cleaned up, the place is a tip.”

(Don’t feel sorry for me. When I tell this story to people who work in advertising today, their reaction is along the lines of “There were parties here once? Bollocks, I don’t believe you.”)

But there were various hangovers of different kinds from that decade of excess. At least once a week during the 90s, the ‘Jolly Trolley’ would be wheeled down the corridor connecting our veal-fattening pens. It was someone’s birthday, someone was leaving, someone had got a promotion, we’d won a new piece of business – there was always an excuse. Me and the other graduate recruits were usually too busy to join the festivities, but when we finished work around 8pm, long after the party had moved on to the pub, we’d scavenge the Jolly Trolley for unopened bottles to take home. For my first 18 months in London, I practically subsisted on stolen crisps, warm Budweiser and cheap, shitty champagne.

Often, we’d have a mild buzz before the Jolly Trolley even appeared. Frequently, client meetings would run over lunch, and at 1pm a trolley that was only marginally less jolly, loaded with crisps and sandwiches, would be wheeled into the meeting room and unloaded onto the middle of the table. Behind this first trolley, a second full of wine and beer would follow, and people would crack open the booze without even breaking the flow of whoever was presenting acetates on the overhead projector. This was normal. No one even commented on it. From that point, we would drink steadily and moderately until the meeting was over. (I don’t remember anyone ever finishing the meeting pissed.)

I can’t remember when the drinks trolleys stopped. I didn’t notice them becoming rarer and finally disappearing. But some time in the early noughties I was in a lunchtime meeting with Pret sandwiches and cans of Coke and I remembered the lunchtime booze trolley for the first time in many years. I realised that not only had it disappeared; if anyone suggested bringing it back now they would be censured for suggesting something so inappropriate. Somewhere along the line, without it being discussed, the idea of drinking alcohol in a daytime business meeting had become completely unacceptable. Everyone simply knew it was, just as everyone had known a decade previously that its was fine.

Back when advertising was boozier, the ads were much better, and people enjoyed the job more. I’m not going to argue that the presence of booze was the main reason for this; all I am saying is that when people were drinking, the job still got done. Good ads got made and those ads did good business for the clients. The standard of work did not dramatically increase when the booze disappeared. People were made to work harder and longer, but if anything, the quality of the work they produce has declined. Just watch a commercial break if you don’t believe me.

You should be able to trust grown adults to occasionally go to the pub at lunchtime without coming back to the workplace sozzled. If people drink at lunchtime to the point where it affects their work, then they should be reprimanded for it, but the crime should be the sloppy work or unacceptable behaviour, not the drinking itself.

Workplace drinking has beneficial effects as well as negative ones, and while there’s no measurement of them, I suspect they’re more widespread than the bad behaviour. A quiet pint can smooth things over, avoid problems, thank someone, share problems or create bonds.

When I visited Japan for my book Three Sheets to the Wind, I discovered that beer solves an apparent paradox in the Japanese workplace. Japanese salarymen tend to give little of themselves away in the workplace, but will only do business with those they know and trust. How do you get to know and trust someone if the shields are always up? Beer symbolizes a switch from ‘on’ to ‘off’, a ritualised movement from formality to informality, to a time when they are permitted to bond and share.

Maybe they don’t do it at lunchtime, so it’s not quite the same as the plight of Lloyds drinkers. But to ban lunchtime drinking outright, rather than punish any negative consequences of it, stigmatises drinking in general. And if you’re lucky enough to still get a lunch break, it’s your own time. If drinking is wrong at lunchtime, then surely it’s not ideal at other times either? What next: a ban on evening drinking from Monday to Thursday to get rid of the detrimental effects of weekday hangovers?

I have no desire to get pissed with city boys. But thinking about it, and mangling a quote traditionally attributed to Voltaire, when it comes to their drinking, I disapprove of their twattish, drunken behaviour, but I will defend to the death their right to be drunken twats.