The History of the Beer and Brewing Industry
eBook - ePub

The History of the Beer and Brewing Industry

  1. 234 pages
  2. English
  3. ePUB (mobile friendly)
  4. Available on iOS & Android
eBook - ePub

The History of the Beer and Brewing Industry

About this book

Beer is widely defined as the result of the brewing process which has been refined and improved over centuries. Beer is the drink of the masses – it is bought by consumers whose income, wealth, education, and ethnic background vary substantially, something which can be seen by taking a look at the range of customers in any pub, inn, or bar. But why has beer became so pervasive? What are the historical factors which make beer and the brewing industry so prominent? How has the brewing industry developed to become one of the most powerful global generators of output and revenue?

This book answers these and other related questions by exploring the history of the beer and brewing industry at a global level. Contributors investigate a number of aspects, such as the role of geographical origin in branding; mergers, acquisitions, and corporate governance (UK, European and US perspectives); national and international political economy; taxation and regulation (including historical and contemporary practice); national and international trade flows and distribution networks; and historical trends in the commercialisation of beer. The chapters in this book were originally published as online articles in Business History.

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Information

Publisher
Routledge
Year
2018
eBook ISBN
9781317213055
A taste for temperance: how American beer got to be so bland
Ranjit S. Dighe
Department of Economics, State University of New York at Oswego, NY, USA
This article examines the historical origins of bland American beer. The US was not strongly associated with a particular beer type until German immigrants popularised lager beer. Lager, refreshing and mildly intoxicating, met the demands of America’s growing working class. Over time, American lager became lighter and blander. This article emphasises America’s uncommonly strong temperance movement, which put the industry on the defensive. Brewers pushed their product as ‘the beverage of moderation,’ and consumers sought out light, relatively non-intoxicating beers. The recent ‘craft beer revolution’ is explained as a backlash aided by a changing consumer culture and improved information technology.

Introduction

Americans drink bland beer. Whether that is a good or a bad thing is subjective; one person’s ‘insipid’ is another’s ‘refreshing’. But compared with traditional beer-drinking countries like England, Germany, and Belgium, America is notable for the lightness, paleness, and relatively un-hopped character of its beer. A prominent importer said ‘the American palate tends to go for “less challenging” beers, when compared to the world level of bitterness and body’.1 Even before 1900, Americans drank a domesticated version of Bohemian pilsner beers, with corn or rice adjuncts to lighten the taste. It is widely believed that American beer has become blander and weaker since then, especially with the rise of light beers, a top brand of which ‘has been described as “wet air” and “the nearest thing to nothing in a glass”.’2 The beer industry in the second half of the twentieth century is typically associated with increased concentration, advertising, and homogeneity. Today, despite the much-vaunted ‘craft beer revolution’, light beers still account for more than half the American market and craft beers are only about 10%.3 This article examines how the distinctively bland American beer came to be.
Upscale beer drinkers often attribute the blandness of most American beer to sinister forces such as monopolistic corporations that manipulate a gullible public with slick advertising campaigns, cost-minimising measures such as the addition of tasteless adjuncts, and the displacement of small, quality brewers due to Prohibition and predatory competition from the big brewers. Historians tend to find these explanations unsatisfying. Table 1 shows that America’s dominant beer styles and their alcohol content have not changed a great deal since 1880. What did change was the beer’s composition, with traditional malt and hops content falling, and the availability of alternatives like ales and porters, which fell to near-zero before rising dramatically in the late twentieth century.
Table 1. American beer styles and strength, 1607–present.
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Note: * Beer strength is in terms of alcohol by volume (ABV). Earlier figures given in terms of alcohol by weight have been converted to ABV by multiplying by 1.25.
Maureen Ogle agrees that, relative to European beers, American beer started off bland and became even more so during the twentieth century and emphasises consumer sovereignty.4 Anheuser-Busch, Pabst, and the other top brewers of the late nineteenth century pioneered a product that was uniquely suited to American tastes. In addition to having a high-protein diet that did not require additional nourishment from the grains in beer, Americans tended to drink faster, without food, and in more social settings. The American way of drinking demanded a lighter, less-filling beer. Ogle points out that Anheuser-Busch’s use of rice adjuncts in its Budweiser lager actually made it more costly to produce at the time. No inferior good, it sold for a higher price than other beers and won the top prize at a Paris competition against 100 other beers and ales.5 The blanding down of beer in the twentieth century was similarly a response to demand, in Ogle’s view. The national palate, ‘since the 1920s, had gravitated toward the sugary and the bland, both of which can be seen as hallmarks of a modernising society’. The rise of bland processed foods was a market signal for the brewers to make their products even easier to drink. Miller High Life was a classic example.
The homogeneity of American beers prior to 1990 is something that Ogle says less about. It is a puzzle that in an affluent, growing economy famous for its high beer consumption and its consumerism in general, the selection of beer was so limited. While craft and high-end imported beers may be a niche market, this is a niche in the largest economy in the world, and the explosive growth of that market since the late 1980s suggests that its potential may have been ignored in earlier decades. Amy Mittelman says the niche is not new: ‘Some three to fifteen percent of the American beer-drinking public didn’t and still doesn’t like drinking Bud, Schlitz, Miller, or Pabst,’ she writes.6 That 3–15% range is roughly the combined share of craft beers and imports of total beer sales over the past century. Until recently that share was less than 5%, so it seems that the public’s demand for something other than American adjunct pilsners not only can fluctuate a lot but fell sharply and stayed at a very low level for a long time. The shrinking of that niche, and its subsequent expanding in the past quarter-century, still need an explanation.
David Y. Choi and Martin H. Stack say the lack of variety in the American beer market reflected a ‘sub-optimal equilibrium’ in which non-generic-tasting beers were not demanded because consumers were ‘no longer familiar with the full range of what beer is and can be’.7 Therefore, such beers were not supplied. Consumers’ lack of familiarity with different beer style was a ‘behavioral lock-in’ due to such factors as Prohibition, competition from soft drinks, refrigeration and packaged beer, and the demand for consistency and national brands. Citing Paul Krugman, they compare the situation to the state of English food for most of the twentieth century.8 Despite rising affluence, the English did not demand better food because they had forgotten what good food tasted like.9
Regarding the recent surge in craft beers, the academic literature is slim next to the vast popular literature. Glenn R. Carroll, Anand Swaminathan, and Carroll and Swaminathan have applied the ecological concept of resource partitioning theory to explain the rise of microbreweries as a natural and endogenous outcome of the growing concentration of the industry.10 As the biggest mass brewers drove other mass brewers and regional brewers out of business with their superior scale economies and marketed to the middle with an ever more homogenous product, they opened up space for fringe and specialty producers. The industry’s consolidation was a century-long trend, however, so this theory is hard pressed to explain why craft brewing took off when it did. Swaminathan’s paper also considers niche formation theory, in which exogenous forces like changing consumer tastes and new technology lead to the entry of new firms.11 State-level regressions indicate that consumer tastes, as proxied by consumption of imported beer, were more important than industry concentration in explaining the launching of microbreweries. What, then, explains changing consumer tastes and the widening of that niche? Ogle seems to give most of the credit to the high-profile pioneers of craft and home brewing, while also noting the cultural context of environmentalism, food purity concerns, and distrust of big business.12 Craft brewers and brewpubs market themselves as well as their products, appealing to people’s non-gustatory tastes for adventure, non-conformity, and artisanship. Carroll and Swaminathan have noted this marketing strategy,13 and Jill J. McCluskey and Sanatan Shreay have linked beer preferences to identity economics, in which individuals’ conceptions of themselves influence the utility they derive from particular products.14 Wes Flack, and Steven M. Schnell and Joseph F. Reese argue that a growing ‘neolocal craving’ for locally produced goods and foods helps explain the craft beer explosion.15 Craft beer names and labels tend to be heavy on geography, as if to appeal to this neolocalism.
This article focuses primarily on the brewers and what they said about their product, particularly in trade journals such as Western Brewery, American Brewer, and Modern Brewery Age, as well as a tabulation of the nearly 1300 brewery profiles in the Western Brewer’s 1903 publication One Hundred Years of Brewing. A consistent theme in their communications is that beer is a temperance beverage, consumed for different reasons and deserving different treatment from intoxicating drinks like whiskey and rum. The brewers emphasised the low alcohol content of their product and claimed that it was not only refreshing but non-intoxicating. They treated the prohibition movement as a real threat, even decades after repeal, and constantly sought to reassure the public and policymakers that beer was ‘the beverage of moderation’. This line of argument and the desire of most of the public for an easy-drinking light beer were mutually reinforcing and made for beer that was weak in alcohol content and taste. Until the late twentieth century, nearly all other developments affecting the supply and demand for beer also tended to keep American beer weak or make it weaker.

From colonial times to 1850

The first beer consumed by British colonists in North America was a dark beer, similar to porter or stout and about 6% alcohol, which they had brought over from England. Beer was a staple of the British diet at the time – ‘small beer’ for family dining, ‘strong beer’ for social occasions – partly because the water was undrinkable. Adam Smith (1776) noted that ‘in the country, many middling and almost all rich and great families brew their own be...

Table of contents

  1. Cover
  2. Half Title
  3. Title Page
  4. Copyright Page
  5. Table of Contents
  6. Citation Information
  7. Introduction: Beer, brewing, and business history
  8. 1. A taste for temperance: how American beer got to be so bland
  9. 2. How beer created Belgium (and the Netherlands): the contribution of beer taxes to war finance during the Dutch Revolt
  10. 3. Vertical and financial ownership: Competition policy and the evolution of the UK pub market
  11. 4. Vertical monopoly power, profit and risk: The British beer industry, c.1970–c.2004
  12. 5. Happy hour followed by hangover: financing the UK brewery industry, 1880–1913
  13. 6. From reviving tradition to fostering innovation and changing marketing: the evolution of micro-brewing in the UK and US, 1980–2012
  14. 7. Death and re-birth of Alabama beer
  15. 8. New identities from remnants of the past: an examination of the history of beer brewing in Ontario and the recent emergence of craft breweries
  16. Index

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Yes, you can access The History of the Beer and Brewing Industry by Ignazio Cabras, David Higgins, Ignazio Cabras,David Higgins in PDF and/or ePUB format, as well as other popular books in Business & Business General. We have over 1.5 million books available in our catalogue for you to explore.