Craft beer clash shows signs of brewing

A SUDDENLY public debate over craft beer versus "faux craft" brands made by multinational conglomerates could portend bigger battles to come in the rapidly growing segment.

By InvestSMART · 17 Dec 2012

By InvestSMART ·
17 Dec 2012

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A SUDDENLY public debate over craft beer versus "faux craft" brands made by multinational conglomerates could portend bigger battles to come in the rapidly growing segment.

In a biting opening salvo, a trade group for America's craft brewers has accused Anheuser-Busch InBev and other major manufacturers of "deliberately attempting to blur the lines between their crafty, craft-like beers and true craft beers from today's small and independent brewers".

"We call for transparency in brand ownership and for information to be clearly presented in a way that allows beer drinkers to make an informed choice about who brewed the beer they are drinking," the Colorado-based Brewers Association said.

The group singled out Blue Moon and the Shock Top line.

Those popular beers are owned and produced by, respectively, SABMiller, the same company that makes Miller Lite, and AB-InBev, the Belgium-based purveyor of the ubiquitous Budweiser and Bud Light.

"You would not know that from looking at the labels," said Julia Herz, craft beer director for the Brewers Association. Ms Herz has called for manufacturers to be more transparent in their labelling.

The debate got off to a brisk start on Twitter, with the hashtag #CraftVsCrafty, and beyond.

In Australia, Lion Nathan owns beer brands such as Knappstein Reserve Lager and James Squire that could spark similar "craft versus crafty" debate.

Carlton & United Breweries owns Matilda Bay, which produces Bohemian Pilsner. It is described as a "hand-crafted" beer.

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Frequently Asked Questions about this Article…

What sparked the recent craft beer versus "faux craft" debate?

A trade group for America’s craft brewers, the Brewers Association, accused large manufacturers of blurring the lines between small independent craft beers and craft-like brands made by multinationals. The dispute, which called out brands and labeling practices, quickly spread on social media under the hashtag #CraftVsCrafty.

Which big beer companies and brands were named in the article?

The article mentions Anheuser-Busch InBev (AB‑InBev) — maker of Budweiser and Bud Light and owner of Shock Top — and SABMiller, which owns Blue Moon and produces Miller Lite. It also references Australian groups Lion Nathan (owners of Knappstein Reserve Lager and James Squire) and Carlton & United Breweries (owner of Matilda Bay, producer of Bohemian Pilsner).

What is the Brewers Association asking for regarding beer labels and brand ownership?

The Colorado‑based Brewers Association is calling for transparency in brand ownership and clearer labeling so beer drinkers can make informed choices about who brewed the beer they are drinking. Craft beer director Julia Herz has specifically urged manufacturers to be more transparent on labels.

Why should everyday investors care about the craft vs crafty beer debate?

The article suggests the debate could foreshadow bigger battles in the rapidly growing craft beer segment. For investors, controversies over brand authenticity and labeling can affect consumer perception, brand value and marketing strategies — factors that may influence company reputations and sales over time.

Which brands did the Brewers Association single out and what was the concern?

The Brewers Association singled out Blue Moon and the Shock Top line. The concern was that ownership by large conglomerates (SABMiller for Blue Moon and AB‑InBev for Shock Top) is not obvious from the labels, potentially misleading consumers about whether a beer is an independent craft product.

Did consumers react to the debate, and how was it expressed?

Yes — the debate gained momentum on social media, especially Twitter, where participants used the hashtag #CraftVsCrafty to discuss and argue over the differences between true craft brewers and craft-like brands owned by multinational companies.

Could a similar craft versus crafty debate happen in Australia?

The article notes that similar debate could arise in Australia, pointing to brands owned by Lion Nathan (like Knappstein Reserve Lager and James Squire) and Carlton & United Breweries (Matilda Bay’s Bohemian Pilsner) that might prompt questions about authenticity and labeling.

What should investors watch next in the craft beer sector related to this issue?

Investors should monitor calls for labeling transparency, public sentiment (including social media trends like #CraftVsCrafty), and how large brewers respond on brand ownership and marketing. These developments can influence consumer trust, competitive dynamics in the craft segment, and potential regulatory or industry-led labeling changes.