Here in the United States we are going through a renaissance in beer.  The craft beer craze is sweeping the nation, but that doesn’t necessarily hold true for the rest of the world.  In South Korea, for example, the country is limited (for the most part) to one of two brewing companies.

The problem for South Korean boozers is that their national market is a cramped duopoly. Hite-Jinro and Oriental Brewery (OB) have nearly 100% of it. Their beers are hard to tell apart; their prices, even harder. At five out of five shops visited by The Economist, their main brands all cost precisely 1,850 won ($1.70) per 330ml can.

 

Until 2011, regulations required all brewers to have enough capacity to brew well over 1m litres at a time. This in effect kept all but Hite and OB from bringing foamy goodness to the masses. Smaller producers were allowed to sell their beer only on their own premises.

This is just the type of thing that we’re trying to prevent here at Indy Beers.  But even in the face of this duopoly, there is hope.

However, only a handful of small brewers have risen to the challenge. One of them, Craftworks Brewing Company, is owned by a Canadian, Dan Vroon. Mr Vroon’s pub in Seoul is packed every night. But several hurdles still make it hard for him to sell his pilsners, stouts and pale ales more widely, he says.

Of Course, this hope comes at a cost.

Brewers are taxed heavily if they deliver their own beer. Craftworks’ unpasteurized brews must be kept chilled from the vat to the tap, which creates a problem. Cold distribution is a tiny, pricey niche. This is because the big boys don’t use it: their beers have their tasty, bureaucrat-bothering bacteria removed at the brewery. They can thus be delivered warm and then chilled in the pub.

 

Punitive tariffs prevent brewing experimentation. The Korean taxman treats malt, hops and yeast as beer ingredients, which are subject to low import duties. Anything else you might put in the brew is deemed an agricultural import, and thus a threat to the nation’s farmers. “Speciality grains like oats aren’t on the approved list, so we must pay more than 500% if we want to use them,” says Park Chul, another frustrated brewer.

 

Those who do not qualify for a wholesale licence have it even worse. Though they sell only through their own pubs, government inspectors place meters on their vats. These can become contaminated, causing costly stoppages. “It’s enough to drive you to drink,” sighs Mr Vroon.

So next time you’re out at the pub having a great craft beer from an independent brewer, remember, not everyone in the world who has access to beer gets good beer.

Source: http://www.economist.com/

Big beer is getting the squeeze from big restaurants.   No longer is big beer the dominate tap handle at your local chain restaurant, instead these establishments are increasingly turning to craft beers for their beer selections.

More signs that American culinary tastes are changing, or perhaps becoming more diverse: 15 Chipotle Mexican Grill (CMG +2.24%) restaurants in Chicago have begun to sell locally-made “craft beers” on a trial basis, theChicago Tribune reports.

 

Earlier this year, the pasta restaurant chain Noodles & Co. announced a similar policy, offering its customers craft beers and upscale wines.

 

American craft brews are a big growth business. The Brewers Association reports dollar sales for the country’s small and independent craft brewers were up 14% in the first half of 2012, while the volume of craft brewed beer sold rose 12% in that same time period. Oh, and the number of total breweries in the U.S. is currently at a 125-year high.

 

“Generally, most craft brewers are continuing to see strong growth in production, sales, brewing capacity and employment, which is to be celebrated during challenged times for many of today’s small businesses,” said Brewers Association Director Paul Gatza in a statement. “Plus, it’s a fact that beer drinkers are responding to the quality and diversity created by small American brewing companies. India pale ales, seasonal beers, Belgian-inspired ales and a range of specialty beers are just a few of the beer styles that are growing rapidly.”

 

Industry experts say the trend of national chain restaurants selling local beer brands is hardly shocking news.

 

“I would say it’s not surprising as all, given the growing popularity and the enthusiasm and the passion that’s being driven by the craft beer segment in the United States,” says Eric Shepard, executive editor at Beer Marketer’s Insights, which covers the beer industry. “It’s still only 6% of the total volume, but seems to grow under a lot more of that in terms of the passion and media coverage.”

 

Shepard points towards the so-called “locavore” movement — where consumers prefer food, beverages and produce grown regionally — as a model for the national restaurant chains to consider.

 

“I think some of the other restaurant chains have already adopted this to a certain extent,” he said, “where they give a certain amount of freedom to their franchisees to choose based on where they are and the local tastes and food as well. That they would do that in beer as well just makes a whole lot of sense.”

 

But nothing is simple, and that’s certainly true when you talk about defining what exactly is a craft beer.

 

The big brewers are creating their own craft beers — such as Blue Moon, produced by MillerCoors (TAP +1.23%) or Shock Top from Anheuser Busch (BUD +2.57%). “They see where the growth in the industry is and it’s been fairly explosive in crafts over the last four or five years,” says Shepard. “And they want to play in that space as well. Ultimately the consumer will sort all of this out.”

Source:  http://money.msn.com/