CRAFT BEER
Cracking craft Craft continues to lead growth in the beer category but understanding the reasons why can lead to a more effective and profitable offer for retailers, as Charlie Whitting reports.
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he Australian beer category has been evolving for decades, but the shift in focus has really picked up speed in recent years, with craft beer experiencing enormous and rapid growth across the country. The number of breweries is said to stand at around 600, up from around 500 last year, and each brewery is pushing boundaries with a range of new styles and interpretations that have captured the imagination of the beer drinking public. With so many breweries creating so many beers, it can be difficult to know where to start, or indeed how to translate your craft credentials to customers. The growth in craft has been so fast, it has left many people struggling to keep up – just as New England IPAs are heralded as the next big thing, Brut IPAs start appearing on beer lists. So where should retailers start?
INDEPENDENT IMPORTANCE? When it comes to craft beer, there are few fiercer debates than that around independence. The last few years have seen large, multinational brewing companies like CUB and Lion acquire or even launch smaller craft breweries and reactions have been mixed. Many have welcomed the increased distribution these acquisitions offer, bringing craft beer to a wider, more mainstream audience as a kind of gateway beer. But others see these acquisitions as a loss of identity, localness and authenticity – key pillars in the craft beer temple. The Independent Brewers Association (IBA) launched a Seal of Independence last year, allowing customers to easily identify independently owned breweries. Brewers and drinkers alike have largely put their support behind the scheme, with results from Beer Cartel and GABS highlighting the popularity of independent beers. Stocking a blend of independent and other beers will give customers the opportunity to make a choice with their wallet. “Remaining fiercely independent is one of our core values and we feel it is important to grow to help drinkers and community easily identify what beers are locally owned by independent Australian brewers,” says Jasmin Daly, Marketing Manager at Stone & Wood. “In the last quarter, major craft breweries’ sales only grew four per cent compared with 28
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“BY OFFERING A DIVERSE RANGE OF CRAFT, THIS SUPPORTS THE DRINKERS’ JOURNEY AND REINFORCES THE RETAILER’S COMMITMENT TO PROVIDING THEIR CONSUMERS WITH WHAT THEY WANT.” – JASMIN DALY, STONE & WOOD per cent growth in sales by indie breweries. This shows that as awareness grows of what it means to be independent and why it matters, drinkers are voting with their dollars.”
VARIETY AND EXPERIMENTATION Craft beer is defined by its diversity – whether that’s in terms of where it’s made, the styles on offer or the ingredients that are used in the brewing process. This diversity offers retailers the opportunity to develop their beer range. They can stock beers from a greater variety of producers on their shelves or expand the beer styles on offer beyond lagers and pale ales. With this broader range, retailers can encourage customers to experiment and learn more about beer as a wider category. “By offering a diverse range of craft, this supports the drinkers’ journey and reinforces the retailer’s commitment to providing their consumers with what they want,” says Daly. “Take on the feedback from your drinkers and then look to build a balanced offering that allows those who are wanting to dip their toes into craft beer a handful of approachable options that cross the spectrum, from malt-driven to hopfocused. From there, it should be about providing options for drinkers’ varying interests across IPAs, sours, dark beers and so on.” With such a wide array of beers and brewers out there, it would be easy to get carried away with it all, stocking a host of outlandish and unusual beers at the expense of more mainstream brands and styles. But this would be an error. They certainly have their place, but the majority
