Page 17 - The Five Forces of Everything

ILLUSTRATIONS

In Brazil, the number of craft beer launches is second only to the U.S.
CRAFT BEER: THE NEW NORMAL In a market dominated by a few big brewers, it seems that Brazilian
consumers have discovered an appetite for variety.

The dynamics of the beer And craft has now gone East, where AB InBev has opened a new craft
category are a perfect refl ection brewing plant in China to meet rising demand.
of people’s more adventurous
expectations. Consumers have Some say that craft is the new normal. Others see future growth
been shunning established coming from hyper-local breweries as manufacturing costs fall.
premium bottled ales and Whatever happens next, we feel sure that there are plenty more weird
reaching for craft alternatives. and wonderful launches to come.

In the U.K., big brands are
shrinking as buyer numbers
fall. Meanwhile, craft beer
brands continue to swell as
buyer numbers increase. Sales
increased by 7.2% in 2018 alone.

The Grocer magazine commented “it doesn’t take a
degree in rocket science to work out why craft beers
are utterly cannibalising their more traditional cousins.
Next to brands such as Fourpure, Magic Rock and
Beavertown, whose beers are packaged in audaciously
designed, striking cans, premium bottled aisles are
beginning to look old hat”.

And of the beer itself the
U.K.’s biggest retailer, Tesco,
said ‘craft drinkers tend to
enjoy experimenting with a wide variety of
diff erent fl avours and styles’.

In the U.S., where the craft sector is more
mature, growth levels remain ahead.

Left: In the U.S., Yonkers Brewing Co. is steeped in local pride.
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