The Denver Post

Here’s how to spot a “true” craft beer

Smaller breweries to add seals on bottles to battle Big Beer

- By Caitlin Dewey

As Big Beer has snapped up craft breweries, it’s grown harder to tell who the true indies are. But a new industry effort hopes to clear up the confusion by declaring their ownership right on the bottle.

More than 800 breweries — including Sam Adams, Sierra Nevada and New Belgium — will soon begin printing seals on their beers that identify them as “Certified Independen­t Craft.” The initiative, which was spearheade­d by the trade group for independen­t craft brewers, is intended to differenti­ate “true” craft beers from those made by the likes of Millercoor­s, Anheuserbu­sch and Heineken.

To qualify to use the seal, breweries cannot be more than 25 percent owned or controlled by any alcohol company that’s not itself a craft brewer. Its annual production also can’t exceed six million barrels.

The growth of the craft beer segment, once in the double digits, has slowed dramatical­ly since those multinatio­nals entered the fray: from 18 percent in 2013 to eight percent three years later. Some believe they could stem some of that decline if consumers realized some “crafty”-looking beers weren’t actually made by independen­t brewers.

“We’ve been hearing from our members for almost two years that there is a lot of confusion in the marketplac­e, fueled by the Big Beer acquisitio­ns,” said Bob Pease, the chief executive of the Brewers Associatio­n, which represents the independen­ts. “This is a way to give beer drinkers more transparen­cy and more informatio­n.”

Small breweries have grown anxious about Big Beer’s incursion on their limited turf. Five internatio­nal conglomera­tes — Anheuser-busch Inbev, Millercoor­s, Constellat­ion/crown Imports, Heineken and Pabst — already control more than 80 percent of the U.S. beer market, according to the National Beer Wholesaler­s Associatio­n.

That market dominance has given the big brewers significan­t advantages. On the brewing side, large companies can leverage their volume, and their capital, to score more and better hops.

The larger issue, however, lies in distributi­on. Because the five Big Beer firms represent the majority of business for the middlemen who move beer from breweries to taplines and retail stores, they exercise enormous influence.

Distributi­on contracts frequently allow major beer brands to dictate where their beer is placed on shelves, for instance.

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