The differences between big and small breweries are becoming more and more obvious.
One of the best things about good beer in Australia is the variety. There are different producers making a plethora of styles in varying formats.
We have the likes of James Squire at one end, along with recently acquired Pirate Life, 4 Pines and so on.
Then there’s large independents such as Stone & Wood or Young Henrys who have broad appeal and are sending beer across the country.
There are established local breweries, loved in their home cities and states. In Sydney these are the likes of Batch, Wayward and Grifter. Around the rest of the country, Newstead, Nail, Big Shed, and Hop Nation all fit into this category.
Then there are specialist or small scale producers who make a different type of product or numerous small batch beers. Wildflower and BlackFont are examples here. Two Metre Tall or La Siréne are others.
Categorising Australia’s Breweries
These different types of breweries might be categorised something like this:
- Large non-independent beer labels
- Non-independent national craft brands (medium to large breweries that have been recently acquired)
- Independent national brands (medium to large independent breweries)
- Regional favourites (small to medium independent breweries)
- Specialist or small batch independent producers (Nano to small breweries)
The variety is great but just by looking at that list and the examples that fit into each category, you can see the tension between them.
They’re all aiming to do different things. They each have different priorities and goals.
In The Context Of The Hottest 100
This growth and diversification that were seeing really became evident in January’s Hottest 100 results. Non-independents had a significant share, while many small or regional producers missed out. It signalled a stratification of Australian breweries.
Much of the debate that comes after the Hottest 100 poll results can be explained by considering these categories.
- National non-independent brands (e.g. James Squire) may place in the Hottest 100 through brute strength. The sheer volume they produce will result in enough votes, even if people aren’t particularly passionate about the beers.
- Recently acquired craft breweries will continue to place as long as they produce flavourful beer and send it into national distribution. Some people will complain that they’re not independent but more people will continue to buy the beers and love them, not caring about ownership structures.
- Independent national brands will place highly and will value the publicity and sales generated by high rankings in the Hottest 100. These breweries face vocal backlash from a minority of people who claim their flagship beers are boring or tired. The reality is that they’re good, consistent and have broad appeal.
- Regional favourites might place in the top 100. Many others won’t. It depends on production volumes, distribution and marketing.
- Specialist and small batch producers might have hardcore fans but they don’t have the breadth of distribution to get enough votes to place in the top 100.
If a brewery doesn’t fit into those categories, say a small regional brewery that isn’t a local favourite, then that might explain why it doesn’t place in the Hottest 100. It might also point to a limited lifespan unless they improve quality or reach.
What It Means In General
This stratification means that the beer landscape in Australia is evolving on both a national and local level.
We have a variety of producers across the brewing spectrum, with particular opportunity for growth and diversity at the narrow and pointy end.
If, as I hope, there is a move towards a local focus for short-life and specialist styles, we will see plenty of exciting beer produced that can co-exist in a market with big brewers flexing their national distribution muscle.
While the product they’re producing is technically the same, the reality is that the flavour, packaging, price point and purpose is so different that the breweries at each end of the scale are serving completely different markets.
Big craft beer brands are establishing themselves but there’s still room for small, nimble, specialist local producers. It’s an exciting time in the Australian beer market.
Big craft beer brands are establishing themselves but there's still room for small, nimble, specialist local producers. Click To Tweet