Craft Beer: More Costly. Better Value.

When spending more makes sense.


To borrow from Sam Calagione’s business philosophy in Brewing Up a Business, it strikes me that education has to be a very large component of the expansion of the craft beer movement beyond the realm of the enthusiast. One reason that the consumer needs to be educated is because craft beer costs more, on average, than industrial commodity beer. If the consumer merely sees “Beer 1” and “Beer 2,” and Beer 2 is cheaper, then the rational decision is to buy Beer 2. Aside from price, the consumer doesn’t know the difference between the two products. Beer is just beer.

The craft beer community must continue its efforts at education in order to give the consumer a reason to buy Beer 1 where Beer 1 is the pricier craft beer and Beer 2 is the industrial commodity beer. The question then becomes what sort of education is necessary, or desirable. Now let me stop here and acknowledge the fact that there are plenty of people who will never be ardent craft beer drinkers. That’s fine. I don’t judge them negatively. If they like to drink Bud Light that’s their business. All I will do is kindly tell them that I think there is beer out there that is a better value, even if it costs more. If they choose to inquire further, then I am more than willing to explain myself.

Also, I will acknowledge that for some, beer is merely a means to a drunken end. That’s also fine. As long you don’t hurt anybody but yourself I couldn’t care less. I will however advise you that there are cheaper and more efficient means to reach your desired result (read: clear liquor).

I suppose craft beer education for me comes down to a single concept: value. Every effort at education must be geared towards letting the consumer know why craft beer is a better value even though it’s more costly, perhaps even because it’s more costly (two italicized words in one sentence, eek!).

Why do I find craft beer more valuable than industrial commodity beer? First, craft beer has personality. I don’t just mean the hop-related pun names or the label art or the fact that the beer is generally more flavorful. What I mean is that there are people behind craft beer, rather than mega-corporations whose main goal is to raise their stock price. Where craft beer is your local restaurant whose owner cares about the food coming out of the kitchen, industrial beer is McDonald’s, a faceless entity churning out low-cost, low-flavor food designed more to make money than it is to satiate. In other words, part of the value of craft beer is knowing that my dollar is going to a person who cares about what they make.

Another portion of the value quotient is enjoyment. As I said above, if your enjoyment is derived solely from getting blitzed, there are better ways to “enjoy” (and they’re cheaper too). However, if you care about the contents of your glass and want to drink something that not only slakes your thirst, but dazzles your tastebuds, craft beer, almost regardless of cost, is a higher value proposition. Here’s how I explain it. Let’s take a six-pack of Budweiser and a six-pack of Deschutes Black Butte Porter. Each sixer contains 72 ounces of beer and roughly the same amount of alcohol (making degree of possible intoxication a nullity as far as decision-making goes). Let’s say Bud is on sale for $4.99 a six-pack and Black Butte is going for $8.99. I’m buying Black Butte every time because I derive greater value from Black Butte.

I will not enjoy a single ounce of that Bud sixer. Thus, every cent of that $4.99 is flushed down the drain as far as I’m concerned. However, I am virtually guaranteed to enjoy every ounce of my $8.99 sixer of Black Butte. Thus, it is a much better value. Beer is a luxury, not a necessity. No one needs to buy beer to live. So, if you’re going to spend money on beer, shouldn’t your dollar go farther? If thirst-quenching is the motive, buy a soda. If getting drunk is your motive, buy hard liquor. However, if your goal is to truly enjoy the beverage in your glass (and maybe catch a little buzz, which I willingly admit is quite pleasant) then your money is better spent on craft beer than industrial beer.

“But Alex,” you say, “I can get twice as much Bud as I can Black Butte.” I say, you’re missing the point. When drinking a beer with full flavor, satisfaction can come in a few ounces, rather than a few bottles. Greater enjoyment of the beer itself makes the beer a better value and also argues for more moderate consumption.

Let’s say you agree with me that craft beer tastes better, but you still can’t justify the cost. I would answer that good ingredients, and more of them, cost more money. You don’t expect to pay the price of a gourmet burger at McD’s. And why not? Because the components of the burger are of a lower quality and the labor to make the burger was cheaper and McD’s has no ambience and no personality. The same is true of your beer. Industrial beer is often made with one of the cheapest commodities there is in America: corn. The government subsidizes corn production to the point where farmers have no choice but to grow it. Since the price is artificially depressed, it makes a great substitute for barley; that is, if you don’t really care what your beer tastes like and you’re merely trying to capitalize on economies of scale.

Craft beer on the other hand, makes a point of using the best ingredients. Craft brewers must take this approach in order to ensure that their beer tastes good, because they can’t compete on price. Do some of them use corn occasionally? Sure. But they do so because it helps them achieve a certain flavor, not because they want to produce their product as cheaply as possible. They also generally use a helluvalot more hops than industrial brewers. Hops are expensive, but they contribute oodles of flavor and aroma in the hands of a talented brewer. Craft beer thus justifies its cost many times over.

So you say you can’t afford craft beer all the time and you want some booze in your life. That’s fine. Grab a handle of vodka. Take a few shots. Problem solved. Way cheaper per ounce of alcohol than buying industrial beer. However, if you aim to truly enjoy the product in your glass (and catch a little buzz), then buy craft beer (or fine spirits, which I also enjoy; pick your poison). You’ll spend more money, but you’ll get a better value.

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6 responses to “Craft Beer: More Costly. Better Value.

  1. All it takes is to meet/talk to a craft brewer to see the passion and hard work that goes into their products, you won’t think about craftbeer the same way again.

    Although I’ve been guilty at times, craft beer is not about quantity, it is about quality. If your goal is to get hammered, there are plenty of options.

    Great Job Alex

  2. Great post, Alex. This pretty much sums up the Craft Beer Drinker’s mentality.

  3. While I fully agree with your sentiment that craft beer is a more satisfying and enjoyable product, I take issue with your statement that adjuncts are used simply to save cost at the expense of flavor. Although corn and rice (which is used to a greater extent than corn to brew the ubiquitous American light lagers) is often (but not always) cheaper than barley, the additional processing costs associated with such adjuncts are significantly more than the cost of processing barley which results in net savings of negligible to none. The driving force behind industrial brewers’ use of such adjuncts IS flavor. Specifically, rice imparts a light color and flavor that is difficult to produce with barley only.
    It’s also important to note that the most significant costs to industrial brewers (by far) are not the cost of ingredients but rather the packaging and regulatory costs.

  4. My sentiments exactly. I think you bring up a lot of great points that even a casual craft beer drinker can agree on and may not have thought of before. I think that with the recent rise in organic products, more and more people are turning to quality, locally grown, artisal foods and beverages. ‘Quality over quantity’ is what I always say. I will pass this article on and hopefully open some more eyes. Cheers!

  5. Pingback: Craft Beer: Costs More. Totally Worth It. | BoozeNews

  6. You can also feel the difference when you have drank the Bud vs the Black Butte, because the megabreweries use filler like corn or rice, the beer produced tends to be very thin, whereas the barley, and the way they brew it makes it a “thicker” beer. When you drink the Bud, you feel very little, whereas with the Black Butte, you tend to feel full. It is the difference between short chain carbohydrates and long chain carbohydrates. If you drank the Black Butte, you might only need half a sandwich for dinner, whereas you need the full one when drinking Bud. Put it this way, if you are buying a pillow, while sawdust might work and would be cheap, down makes a much nicer pillow.

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