Ian Foster, Sculpture Hospitality Regional Director California
Five years ago, you would find only the big brewers’brands dominating the taps at almost every bar in the U.S. The draught beer was almost identical anywhere you went: Bud, Miller, Coors Light, Guinness, and maybe a craft selection such as Samuel Adams or Sierra Nevada Pale Ale.
Things are very different today. Many bars are expanding their draught beer selection, by adding as many as 30, 40 or even 50 taps. There is also a movement away from the big brands toward local craft brewers. In fact, many consumers won’t even buy craft beers if the brewer has been bought by the big brewers (Miller, Coors or AB InBev) or if the craft brewer is not considered local enough.
This same trend is beginning to happen with liquor too. While Beefeater, Bombay and Tanqueray gins were carried by most bars five years ago, now we are seeing an influx of locally made “craft-gins” such as Few, Leatherbee, St. George Terroir and dozens of others. In fact, there are now 152 craft brewers and 17 craft distillers in San Diego alone.
The great thing about local brands is that they are difficult to find in liquor stores, so the consumer is not as familiar with the price point, and they generally carry a premium image. This allows the crafty bar owner to charge a premium price for the product. The best example of this is Tito’s Vodka, the first “craft vodka” to gain monster market-share. Consumers happily pay premium prices for Tito’s even though the wholesale cost is about the same as Absolut.
Footnote by Peter Nelson, Sculpture Hospitality Managing Director New Zealand, Australia, and Pacific Islands
The move by consumers towards craft brands is not just a North American trend. There has been a massive growth in craft breweries and local distilleries in both New Zealand and Australia during the last five years.