​Where Did All the Drinkers Go?

By this point, the entire world is well aware that craft beer is great and all that is holy in the world. What started over 30 years ago with Anchor Brewing and New Albion has transformed into a landscape where over 2 new breweries open daily in the US, totaling over 4,100 open at the end of 2015. According to the Brewer’s Association, craft beer volume sales were up 12.8% in 2015, but total beer was down -0.2%. Even more strangely, GuestMetrics (a POS analytics company) reported that bar/restaurant beer volume was down -4.7% in 2015, with craft down -2.7% as well! The most interesting tidbits were that less people were going into these bars and restaurants, they were buying less beer, but they were spending more per beer.[su_row][su_column size="1/2"][/su_column] [su_column size="1/2"]Part of this might be that IPAs are by far the fastest growing type of beer, and these tend to be boozier, more expensive, and harder to crush than the light and import beers of the world. Another factor – these data sources report on traditional outlets, and people aren’t going there for beer anymore (think big chain restaurants, grocery stores, liquor stores, Wal-Mart, etc.). Looking around and talking to folks in Boston, it’s not as if people have abandoned beer and taken up seltzer water… these lost sales are going to brewpubs. A lot of consumer analysts will tell you it’s part of some “go local” trend, but they are looking at the numbers, not the motivations and desires of people.[/su_column][/su_row]A fundamental truth about humans is that we enjoy and remember experiences more than material items (there is plenty of research out there on the topic). From this lens, the beer you drink is less important than the experience you have drinking it. Experience includes things like quality and taste preference, but also friends, emotional state, environment, and ultimately a sense of belonging. Now who executes this better – a brewpub or a TGI Fridays?Brewpubs offer a unique product served in a unique location. It also delivers a shared experience – the beer you are drinking is directly contributing to the brewer’s dream. It all brings beer back to the basics; away from arguing about “craft vs. crafty” and good vs evil, but to a simpler time when beer simply brought people together. I’ll drink to that.Cheers!Sagar Velagalawww.brewfessional.com