NC BEER GUYS

from Carolina Brew Scene - Fall 2018

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Small is the New Big (Again)

Around us, we're seeing the first signs of summer easing its way into fall. It brings to mind how so much of the world is cyclical.

Beer is no exception to this — styles come and go, only to come back around again. The whole experience of beer in North Carolina has seemed to follow a circuitous path, and by seeing where it's been, we might just get a peek at where it's going.

The very first brewery in North Carolina opened in 1774, called Single Brother’s Brewery and Distillery on Old Shallowford Road in Salem (didn’t even have the “Winston-” yet). Growth was relatively sedate for the next few hundred years, with Prohibition all but annihilating North Carolina beer.

When Uli Bennewitz wanted to open a brewery here back in the mid80s, he encountered a few logistical snags preventing him from attaining his dream. Working with state politicians, he pushed legislation allowing microbreweries to sell their own beer on site. The 90s saw a few breweries open and close around the state. The competition at this point was the acceptance of craft beer against the long held staple of “Big Beer” plus the price difference of buying local. Additionally, there was a hard cap of 6 percent ABV the brewers had to observe, limiting offered styles. The session and wild beers you see now weren’t on the radar back then. Availability of local beer was mostly limited to the breweries themselves. The passion was to grow but there was a lot to overcome.

The exponential growth of breweries started just a few years after “Pop the Cap” was passed in 2005. WOO HOO! Breweries can brew beer up to 15 percent!

The growth of breweries spurred the growth of bottle shops and growlerfilling stations that focused on only craft beer. Only a few breweries in the state had their product available for shelves. The pace of growth in beer varieties, volume brewed and the sheer number of operating breweries meant that competition grew ever fiercer. Shelves had to be rearranged or increased to handle all this new product. Tap space now became a premium; even with 16 taps, the amount of product available meant a hard choice for the store owners on who to carry — and who gets left out. This was fantastic for the store owners to have so much selection, but

50 | Carolina Brew Scene | Fall 2018

By Glenn Cutler and Dave Tollefsen

not so great for breweries trying to sell their beer.

Enter canning with its improved quality, availability and the growth of mobile canning. Breweries of all sizes were able to can and get their product on more shelves. Bottle shops filled with a great selection of craft beer - so much so that it’s almost sensory overload when browsing the shelves.

Of course, with any type of product that gains so much popularity, the larger stores want to get in on the action too. Supermarkets started carrying local product, with some even offering beer on tap. Craft beer EVERYWHERE! Isn’t that the dream? For the consumer, yes — but behind the scenes it’s competition. As more breweries open and are able to can their beer and distribute, there is the potential for it to get ugly. You know how it goes — “Human sacrifice, dogs and cats living together ... mass hysteria!” Maybe not quite that, but you get the picture. This is not to say there’s an oversaturation issue with breweries. We believe there’s plenty of room for a brewery on every corner — as long as quality and creativity are in place. It’s the amount of product now available that may have a saturation issue.

Now there’s a new thought going around: hyperlocalization. Breweries limit their distribution, sell their own bottles and cans in-house and really push their biggest return — their own draft sales. Why fight for shelf and tap space while taking a hit on margins when they can keep most of it right at the brewery? Granted, that means building up traffic in their taproom to make up for sales not elsewhere. Staying small, however, grows their profits and eventually the whole business.

This smaller-is-better trend is expressing itself in the newest offerings coming around the bend. More and more of the new openings are nanobreweries producing only a barrel or two a batch. Restaurants are getting in on the act, brewing their own lines of house beers only available within their walls.

Best way to support the breweries — explore the state and visit them. Breweries are destinations well worth the visit and you get to see the wonders of North Carolina along the way.

Where do you see the industry going next? Let us know on Twitter and Facebook at @ncbeerguys or via e-mail ncbeerguys@gmail.com.

Best way to support the breweries - explore the state and visit them. Breweries are destinations well worth the visit and you get to see the wonders of North Carolina along the way.

October 20th Journey of Hope Ride for Breast Cancer November 24th 26th annual ride to the Kennedy Children’s Home

Line-up begins at 10 a.m, departure at 12 noon. $15.00 donation

Due to the wide range of ages of the residents, cash or gift certificates are welcomed.

Donations and gifts will be presented at the Kennedy Home. There will be 50/50, Door Prizes, and lunch. First 1000 registrations will receive a commemorative chip. FOR MORE INFORMATION CALL (252) 633-4060