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The Craft Beer Revolution

The Craft Beer Revolution

How a Band of Microbrewers Is Transforming the World's Favorite Drink
by Steve Hindy 2014 250 pages
3.74
100+ ratings
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Key Takeaways

1. The Craft Beer Revolution: From Pioneers to Industry Disruptors

"If You Build It, They Will Come," a line taken from the sentimental baseball movie Field of Dreams, about a dreamer who builds a ballpark in the middle of a cornfield.

Visionary pioneers. The craft beer revolution began in the 1960s with pioneers like Fritz Maytag, who saved Anchor Brewing Company in 1965. These early innovators, including Jack McAuliffe of New Albion Brewing Company and Ken Grossman of Sierra Nevada, laid the foundation for a new era in American brewing. They focused on creating flavorful, high-quality beers that stood in stark contrast to the mass-produced lagers dominating the market.

Industry transformation. As the movement gained momentum, it challenged the dominance of large breweries and transformed the beer industry. Craft brewers introduced consumers to a wide variety of beer styles, from hoppy IPAs to rich stouts, and emphasized local production and artisanal techniques. This shift in consumer preferences and brewing philosophy set the stage for a dramatic reshaping of the American beer landscape over the following decades.

2. Homebrewing Legalization Sparks a Beer Renaissance

"If you are a beer geek, chances are you are a geek about other things too, like computers and food. We came along at the right time, and so did microbrewers."

Legal catalyst. The legalization of homebrewing in 1978 played a crucial role in fueling the craft beer revolution. This change in federal law allowed enthusiasts to experiment with brewing at home, leading to a surge in knowledge and interest in diverse beer styles and brewing techniques.

Homebrewing culture. The homebrewing community became a breeding ground for future craft brewers and educated consumers. Key figures like Charlie Papazian, author of "The Complete Joy of Homebrewing," helped popularize the hobby and provided resources for aspiring brewers. This grassroots movement:

  • Educated consumers about beer styles and quality
  • Inspired many homebrewers to turn professional
  • Created a network of passionate beer enthusiasts
  • Drove demand for more diverse and flavorful beers

3. The Rise of Microbreweries and Contract Brewing

"I used to advise them not to do it, because I didn't want any competition," he recalled. "But I also—and I actually, truthfully, and I've said this many times—never did it occur to me that anyone else could do what we had done. It had been so hard for me."

Microbrewery explosion. The 1980s and 1990s saw a rapid increase in the number of microbreweries across the United States. These small-scale operations focused on producing high-quality, flavorful beers for local markets. Many started as brewpubs, combining beer production with on-site consumption, which allowed them to build a loyal customer base.

Contract brewing controversy. As the industry grew, some entrepreneurs turned to contract brewing, where they would develop recipes and market beers produced by larger, established breweries. This approach, pioneered by companies like Boston Beer (Samuel Adams), sparked debate within the craft beer community about authenticity and independence. Despite the controversy, contract brewing allowed some craft brands to rapidly expand their reach and introduce more consumers to craft beer styles.

4. Innovation and Experimentation Drive Craft Beer's Growth

"As brewers, we each have our own ideas and philosophies. And, like writers who belong to the community of artists, we belong to this community as well. Our recipes, like prose, exist on paper though ultimately they live and breathe in our customer's glass."

Pushing boundaries. Craft brewers distinguished themselves through constant innovation and experimentation. They revived forgotten beer styles, created new hybrid styles, and pushed the boundaries of flavor and brewing techniques. This spirit of creativity attracted consumers looking for unique and exciting taste experiences.

Notable innovations:

  • Barrel-aging beers
  • Extreme high-alcohol beers
  • Sour and wild fermentation beers
  • Fruit and spice additions
  • Collaboration brews between breweries

Consumer education. As craft brewers introduced new styles and flavors, they also focused on educating consumers about beer. This approach helped create a more knowledgeable and discerning customer base, further driving demand for craft beer.

5. Distribution Challenges and the Three-Tier System

"Fresh beer sells beer. Distribution drives volume. Volume covers all sins. . . . I tell my guys, when they deal with suppliers, 'Consistently exceed their expectations.' Those are the keys to the beer distribution business."

Navigating regulations. The three-tier system, established after Prohibition, required brewers to sell to distributors, who then sold to retailers. This system presented challenges for small craft brewers trying to get their products to market.

Distribution strategies:

  • Self-distribution (where legal)
  • Partnering with small, craft-focused distributors
  • Building relationships with large distributors
  • Creating demand through taprooms and local sales

Changing landscape. As craft beer gained popularity, some large distributors began to embrace craft brands, opening up new markets. However, conflicts arose as large brewers sought to maintain their dominance in distribution channels.

6. The Battle for Market Share: Craft vs. Big Beer

"We didn't really change the game. We just learned to play the game."

David vs. Goliath. As craft beer gained market share, it began to pose a real threat to large, multinational brewing companies. The big brewers responded with various strategies:

  • Acquiring successful craft breweries
  • Launching their own "craft-like" brands
  • Using their distribution power to limit craft beer access

Craft beer's response. Craft brewers focused on:

  • Emphasizing their independence and local roots
  • Continuing to innovate and offer unique products
  • Building strong communities around their brands
  • Collaborating with other craft brewers

Changing consumer preferences. Despite the resources of big beer, craft continued to grow, driven by changing consumer tastes and a preference for local, artisanal products.

7. The Future of Craft Beer: Sustainability and Succession

"I'd like to grow the business to a healthy size," he said. "The idea of staying local in New York is appealing, making it a destination brand . . . so people who come from out of state are excited to try some Barrier. The main goal is to be happy, and support the family and lead a good life and have some free time—which there is none of now."

Diverse strategies. As the craft beer industry matures, breweries are adopting various approaches to ensure long-term success:

  • Staying small and local
  • Expanding regionally or nationally
  • Focusing on innovation and special releases
  • Emphasizing sustainability and community involvement

Succession planning. Many pioneering craft breweries are now facing the challenge of transitioning to new ownership or management as founders retire. Options include:

  • Passing the business to family members
  • Employee ownership
  • Selling to larger brewing companies
  • Going public

Industry evolution. The craft beer industry continues to evolve, with new entrants, changing consumer preferences, and ongoing challenges from big beer. The future likely holds further consolidation, continued innovation, and a renewed focus on local markets and sustainability.

Last updated:

FAQ

What’s The Craft Beer Revolution by Steve Hindy about?

  • Transformation of American beer: The book chronicles how a small group of microbrewers transformed the American beer industry from a landscape dominated by mass-produced lagers to a vibrant, diverse craft beer scene.
  • Pioneers and innovation: It highlights the stories of pioneering brewers, their innovative brewing techniques, and the evolution of beer styles inspired by European traditions.
  • Industry and cultural shifts: The narrative covers the political, legislative, and distribution challenges faced by craft brewers, as well as the rise of a passionate community and the cultural movement around craft beer.

Why should I read The Craft Beer Revolution by Steve Hindy?

  • Insider’s perspective: Steve Hindy, cofounder of Brooklyn Brewery and a journalist, provides a firsthand, detailed account of the craft beer industry’s evolution.
  • Comprehensive industry history: The book offers a deep dive into the pioneers, legislative milestones, industry conflicts, and the rise of multiple generations of brewers.
  • Business and cultural lessons: It’s not just about beer—it’s a story of entrepreneurship, innovation, and community-building, offering valuable lessons for anyone interested in business or cultural movements.

What are the key takeaways from The Craft Beer Revolution by Steve Hindy?

  • Passion and innovation drive success: The craft beer revolution was fueled by brewers’ dedication to quality, flavor, and tradition, with innovation often arising from experimentation.
  • Distribution and politics matter: Navigating the three-tier system and advocating for legislative reforms were crucial for craft brewers’ survival and growth.
  • Community and media power: Grassroots support, beer festivals, and the rise of online communities like BeerAdvocate played a major role in spreading craft beer culture.

Who were the main pioneers of the American craft beer movement in The Craft Beer Revolution?

  • Fritz Maytag (Anchor Brewing): Revived Anchor Brewing in 1965, producing all-malt, flavorful beers and mentoring future brewers.
  • Jack McAuliffe (New Albion Brewing): Built the first home-built microbrewery in 1976, inspiring many despite his brewery’s eventual closure.
  • Other key figures: Ken Grossman (Sierra Nevada), Matthew Reich, Bill Newman, and the founders of Redhook and other early microbreweries all contributed to the movement’s foundation.

How did homebrewing influence the craft beer industry according to Steve Hindy?

  • Gateway for future brewers: Many craft beer pioneers, including Ken Grossman and Jack McAuliffe, started as homebrewers, often inspired by Charlie Papazian’s The Complete Joy of Homebrewing.
  • Community and knowledge sharing: Homebrewing classes, competitions, and festivals fostered a passionate, collaborative community that became the backbone of the craft beer movement.
  • Innovation and education: Homebrewing encouraged experimentation with styles and techniques, educating both brewers and consumers about beer’s diversity.

What key legislative changes enabled the craft beer revolution in The Craft Beer Revolution?

  • Federal excise tax reduction (1976): Congress approved a tax break for small breweries, easing financial pressure and defining the “small brewery” category.
  • Legalization of homebrewing (1978): President Jimmy Carter’s bill legalized homebrewing nationwide, sparking a new generation of brewers.
  • Ongoing advocacy: Organizations like the Brewers Association lobbied for favorable laws, helping craft brewers gain recognition and legislative support.

How did distribution and marketing challenges shape the craft beer industry in The Craft Beer Revolution?

  • Distribution barriers: Traditional distributors favored mass-produced beers, forcing many small brewers to self-distribute at first, which was costly and inefficient.
  • Grassroots marketing: Without big advertising budgets, craft brewers relied on word-of-mouth, local events, and community engagement to build their brands.
  • Internal industry conflicts: Disputes over contract brewing, definitions of craft beer, and marketing ethics complicated efforts to present a united front.

What was the significance of the Great American Beer Festival (GABF) and the Consumer Preference Poll in The Craft Beer Revolution?

  • National recognition platform: The GABF became a key event for craft brewers to showcase their beers and gain awards, raising the profile of craft beer.
  • Controversy and reform: The Consumer Preference Poll, dominated by Boston Beer Company, led to debates about contract brewing and marketing tactics.
  • Blind tasting standard: The festival shifted to professional blind tastings to ensure fairness and credibility, setting a respected industry standard.

How did the craft beer industry evolve from the first to the second generation of brewers in The Craft Beer Revolution?

  • Expansion and diversity: Hundreds of new breweries and brewpubs opened in the 1980s and 1990s, creating a vibrant and diverse craft beer segment.
  • Style innovation: The second generation embraced Belgian-style beers, barrel aging, and experimental ingredients, moving beyond traditional constraints.
  • Collaboration and community: Brewers shared knowledge, supported each other, and formed organizations like the Brewers Association to advocate for the industry.

What role did major brewing companies play in the craft beer revolution, according to Steve Hindy?

  • Initial resistance, later involvement: Large brewers like Anheuser-Busch and Miller first ignored or dismissed craft beer, then launched their own “crafty” brands and acquired craft breweries.
  • Distribution control tactics: Big brewers pressured distributors to prioritize their products, often at the expense of craft and imported beers.
  • Industry tensions: These moves sparked legal challenges and debates about the independence and authenticity of craft brewers.

What was the impact of the Brewers Association merger described in The Craft Beer Revolution?

  • Unified industry voice: The 2005 merger of the Association of Brewers and the Brewers’ Association of America created a single, powerful trade association for small brewers.
  • Bridging cultural divides: The merger overcame mistrust and differing organizational cultures, balancing the needs of packaging brewers, brewpubs, and homebrewers.
  • Defining craft brewing: The new Brewers Association established a formal definition of an American craft brewer, clarifying industry identity and membership.

What advice and lessons does Steve Hindy offer aspiring craft brewers in The Craft Beer Revolution?

  • Master the business side: Brewing great beer is essential, but understanding pricing, distribution, marketing, and financial management is critical for success.
  • Build alliances and community: Collaboration among brewers, distributors, retailers, and consumers strengthens the industry and helps overcome challenges.
  • Embrace innovation and authenticity: Experimenting with styles and maintaining a genuine connection to local culture can differentiate a brewery and build loyalty.
  • Prepare for challenges: The industry is competitive and capital-intensive; persistence, adaptability, and passion are crucial for long-term success.

Review Summary

3.74 out of 5
Average of 100+ ratings from Goodreads and Amazon.

The Craft Beer Revolution receives mixed reviews, with an average rating of 3.74 out of 5. Many readers appreciate the detailed history of the craft beer movement and insider perspectives. However, some find the writing style unfocused and overly technical at times. Positive aspects include insights into the industry's growth, challenges faced by small brewers, and profiles of key figures. Criticisms include a perceived bias against certain brewers and a lack of focus on Midwest breweries. Overall, it's considered informative for beer enthusiasts but may be too detailed for casual readers.

Your rating:
4.24
23 ratings

About the Author

Steve Hindy is the co-founder and president of Brooklyn Brewery, one of the largest craft breweries in the United States. As a former journalist, Hindy brings his investigative skills and storytelling abilities to his writing about the craft beer industry. His background as a war correspondent in the Middle East before entering the brewing business gives him a unique perspective on the industry's growth and challenges. Hindy's insider status as a prominent figure in the craft beer movement allows him to provide firsthand accounts and personal anecdotes about key events and personalities that shaped the industry over the past few decades.

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