Increase in Popularity
The craft brewing industry is a niche market, where each brewery must be differentiated in order to survive against mass brewers. There are several different ways for brewers to differentiate themselves, each with their own challenges. Growth and distribution is one example of this.
Many brewers, having been in the industry for a while, struggle to stay differentiated. Selling to a mass brewer is often an option that might be considered. However, survey results indicate that 60 percent of consumers care who makes their beer1. Kalsec® has outlined several challenges that many craft brewers face – with potential solutions.
Whether a veteran brewer or a new local brewery, the goal is to stand apart in the currently saturated craft brew industry.
Comparing the craft brew industry with large-scale brewers, there are a significant amount of differentiating factors that affect the amount of waste to make each product. When brewing for large-scale, items are in bulk and do not change very often. When making many flavors using different materials and ingredients for craft beer, the amount of waste multiplies.
Making craft beer using dry hops creates waste in the form of water and pellets. While a limited number of breweries are learning to recycle this waste in a profitable manner, the majority have no use for it.
In order to address these waste issues, innovative brewers are turning to hop extracts. Hop extracts take hops a step further in the brewing process, meaning that beer producers will not create as much waste. Craft brews experience a higher level of differentiation on a smaller scale, which is why Kalsec® has a solution specifically for craft brewers, developed specifically to enhance the craft brewing process.
A key factor in differentiation and distribution is how a brewer advertises their product. Advertising laws in relation to beer and the craft brew industry can be challenging.
This basic source on advertising laws for craft brewers in the United States helps explain the effects associated with these laws, and why brewers must be careful.2,3
It is not new information for craft brewers that bottling their product for distribution is a difficult task. When compared to mass brewing, the scale for each brew is much smaller, causing consistency concerns.
Scaling up to distribution size requires new equipment, new technology and new processes for craft brewers. Figuring out which filler to use to can or bottle beer is a huge decision. Then once it is filled, it must also be cleaned and labeled. Consumers thrive on originality and uniqueness, so nearly every brew has a different label, can or bottle. The brewer must also provide a level of consistency in flavor from keg to distribution package. Keeping a consistent fresh flavor is key to success.
Even after the brewer knows exactly how they want to bottle and label their product, interests may change. It might be a change in preference of aroma, which may cause distributors to have a surplus. Not to mention these changes are not cost efficient.
Kalsec® helps brewers adjust to rapid changes in consumer preference through our extensive and adaptable hop extracts. These solutions create less waste, add aroma and flavor consistency, and are cost efficient.
- Duprey, R. (2017, September 17). Are Mass Brewers Seeing a Craft Beer Blowback? Retrieved March 12, 2018, from https://www.fool.com/investing/2017/09/17/are-mass-brewers-seeing-a-craft-beer-blowback.aspx
- Masson, R. (2017, August 16). Advertising law crash course for craft breweries. Retrieved March 12, 2018, from https://www.craftbrewingbusiness.com/featured/advertising-law-crash-course-for-craft-breweries/
- The materials available at this website are for informational purposes only and not for the purpose of providing legal advice.