Did The Brewers Association Change Its Craft Beer Definition To Accommodate Boston Beer?

Boston, Did The Brewers Association Change Its Craft Beer Definition To Accommodate Boston Beer?

On Christmas Eve, Motley Fool a multimedia financial services company with stock analysts who watch the beer biz closely, published an article entitled Craft beer Definition Changed to Accommodate Boston Beer and it certainly didn’t pull any punches.

This from Motley Fool…

“If you needed any further proof of the difficult straits in which the craft beer industry finds itself, look no further than the latest change to the Brewers Association’s definition of craft beer. No longer must a brewery use the traditional ingredients that have laid at the heart of brewing for so long — now it just needs to make beer in some quantity. Otherwise pretty much anything goes.

“While the change reflects a desperate attempt by the craft beer industry’s trade group to keep Boston Beer in the fold as the leading craft brewer’s beer sales continue to tumble, when the definition no longer captures the essence of what brewing is about its right to question why they bother having a definition at all.”

Boston, Did The Brewers Association Change Its Craft Beer Definition To Accommodate Boston Beer?Clearly at issue is the Brewers Association’s (BA) recent change to its craft beer definition. And whether that change was directly related to Boston Beer (home to Sam Adams Beer but also to a full line of beverages including Twisted Tea and Truly Spiked & Sparkling hard seltzers) which might soon sell more non-beer beverages than it does its heritage beer brand.

The change in the BA’s definition removed the “traditional” pillar, which required a craft brewer to have “a majority of its total beverage alcohol volume in beers whose flavors derive from traditional or innovative brewing ingredients and their fermentation.”

That definition has been replaced with a simpler “brewer” pillar that requires a craft brewer to 1) be in possession of a TTB Brewer’s Notice and 2) make beer.

The primary takeaway of this update is that a brewers such as Boston Beer are no longer required to have a majority of its total beverage alcohol volume in beer.

Companies that produce across beverage alcohol categories can still be considered craft brewers even when they produce less beer than other products as long as they meet the other requirements: produce less than six million barrels (of beer globally) and remain independent.

Boston, Did The Brewers Association Change Its Craft Beer Definition To Accommodate Boston Beer?The Brewers Association maintains, “This move was not made because of Boston Beer, but the timing of evaluating and revising the definition is related to Boston Beer.”

The BA goes on to assert (and Motley Fool seems to suggest somewhat defensively), that “Boston Beer is not alone and other brewers will face a similar challenge in the years ahead, so keeping what’s arguably the most recognizable craft brewer within the fold lets it advocate more effectively on behalf of the industry.”

In its update announcement the Brewers Association added that “some 60 brewers were kept out of the organization because they primarily made wine and mead, and now they can be included.”

But clearly Motley Fool wasn’t buying the BA’s explanation that brewers other than the Boston-based brewery may face a similar challenges in the future…

“Ultimately, the Brewers Association’s protestations notwithstanding, this change was primarily about Boston Beer and its inability to actually sell beer.” 

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