The pendulum is always moving in the beer industry and despite the outcries of disaster looming on the horizon, there is a glimmer of hope. It is true that the beer industry in Canada is declining but in 2022, the decrease was 1.5% which has been the norm over the last decade - up a percent, down .5 and so on. The Canadian beer industry has been relatively flat for quite some time and continues to sit around 21 million hectolitres. To provide some perspective, during the same time period - Germany shrunk by 4.5% and the USA market by 3%. So, in comparison, the sky is not falling in Canada.
However, the craft industry has shown many signs of change. There is more consolidation happening each year with brewers merging or acquiring others and that shift will continue over the next several years. All breweries in Canada must evaluate how they go to business and whether their focus needs to become more hyper-local. In addition, many craft breweries delineated from their beer portfolios and added RTD (ready to drink) beverages (including hard seltzers and other cocktails). This segment is and will continue to be dominated by global breweries and spirit companies. The hard-seltzer market in the U.S is in free-fall right now and it will move up north at some point. Pre-mixed cocktails are never going away but the competition for shelf space will become more intense. Globally, interesting things are happening. Several breweries are in full acquisition mode - Asahi being the most notable. They announced they are actively looking for breweries to acquire around the world and have recently acquired Octopi in Wisconsin. Asahi also notified the industry that it was closing the Meantime Brewery in the UK and had plans to move production down to the Fullers Brewery in London. A few years ago, Kirin Breweries bought both Bell and New Belgium in the U.S. Sapporo dumped Anchor last year and made Stone their focus. In Canada, Carlsberg purchased Waterloo Brewing and Royal Unibrew (Denmark) bought Amsterdam. One wonders what is next. Will Heineken find somewhere in the US and Canada to brew their beers? Shipping beer from overseas has become expensive but more importantly, beer brewed locally is more fresh and vibrant. The beer industry is a fascinating place and it is truly fun to watch the pendulum of change swing.
0 Comments
I knew that when I started in this industry, that I would encounter competition - on personal levels but also in educational programming. I believe competition is healthy and should be expected and we at Prud'homme Beer Certification have constantly adapted to a changing environment. It's true that my goal was always to provide the best beer education.
However, I draw the line at understanding my competition when it comes attached with a conflict of interest. To set the stage, please understand that I approached the largest beverage alcohol purchaser (LCBO) in Canada asking to be allowed to promote my programs to their staff. I was informed that they could not accommodate my request due to impartiality. They could not show favoritism to one supplier and I understood that. But now.... the Director of Beer for the LCBO has come out publicly and endorsed another program. In addition, this person is also the instructor of the course and these two things just reeks of conflict of interest. This is supposed to be a level playing field. And so, I would like to explain the differences between our programs. Their level 1 program is $495 for a 6 hour program. All of the learning materials are e-documents not hard copies. Prud'homme's Level 1 program is 12 hours of in-class learning for $500 and comes with a variety of support materials (printed copies) at no extra charge. Their level 2 program is $899 for 17 hours of classroom study accompanied by 11 hours of home study. Again, all documents are electronic. Prud'homme Beer Certification Level 2 is $900 but includes all printed materials and 30 hours of in-class study. I feel the necessity to advise everyone interested in learning more about beer to truly investigate which program will best satisfy their needs. This not an apples to apples comparison. This year, Prud'homme Beer Certification celebrates its 15th anniversary of providing the gold standard in beer education. We are proud to have produced over 14,000 Level 1 graduates, over 900 Level 2 grads, 250 Beer Sommeliers and 36 Master Beer Sommeliers. Well.... here goes nothing! I used to spend quite a bit of time writing my thoughts about the beer industry but then it just drifted off into the sunset. I miss sharing my posts and so I've decided to start it up again. Each week, I will be discussing various aspects of the beer industry and I urge you to comment. Let me know what topics you want me to focus on and don't be afraid to respond to my posts with your thoughts. Next week, I am going to discuss a recent issue that reared its ugly head. Stay tuned.
|
Roger MittagJust trying to make the beer industry a better place, one glass at a time. |