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Revolution: Beer

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[WOBI World of Business Ideas] [TECHNOLOGY] [CONSUMERS, NEW TRENDS] [EVOLUTION] [SOPHISTICATION] [REVOLUTION ZOOM IN ON ORDINARY PRODUCTS] [BEER] >> It's one of the most traditional beverages in the world. It's also a global favorite with millions of fans. This low alcohol beverage is associated with kicking back, hanging out with friends, and having a good time. But it also has shaped the course of human history. Today, beer is more popular than ever. On this episode of Revolution, we'll talk about beer and explore a trend that has been growing for decades and is now literally exploding, the craft beer revolution. We'll meet different experts from this world, specialized journalists, craft beer brewers, sellers, and pioneers. Each will reveal the secrets behind this movement. >> My name is David Cichowicz. I own Good Beer in East Village, New York City, It's a craft beer shop. [David Cichowicz Founder Good Beer] We've got about 625-650 different bottles, 12 different rotating taps for growlers, in-house porters, tasting flights, pints, et cetera. [Ron Silberstein Founder and Brewmaster Thirsty Beer Brewing Company] >> I'm Ron Silberstein. I'm the owner and founding Brewmaster of Thirsty Bear Brewing Company. [Dane Brewer Magnolia] >> Hi. My name is Dane. I'm a brewer here at Magnolia. [Steve Hindy Founder and Chairman Brooklyn Brewery] >> My name is Steve Hindy. I'm the founder and chairman of Brooklyn Brewery. [Brendan Doble Brewmaster Thirsty Bear Brewing Company] >> Hello, my name is Brendan Doble. And I am the Brewmaster here at Thristy Bear Brewing Company. [Joshua Bernstein Beer Journalist] >> My name is Joshua M. Bernstein. And I get paid to write about what I drink. I feel very lucky that I've been able to chronicle the Craft Beer Revolution over the last decade. [Dave McLean Founder and Brewmaster Magnolia] >> Hello, I'm Dave McLean, Founder and Brewmaster of Magnolia Brewery. Welcome to Magnolia. >> These beer connoisseurs will answer some fundamental questions. What are the differences between industrialized beer and craft beer? Why are craft beer bars and small breweries growing so quickly all over the world? How is this revolution related to the growing foodie culture? And how is it affecting beer sales worldwide? This episode of Revolution will uncover the answers to all these questions and more. Let's go. And cheers! >> Beer, to me, is a story about people's passion, creativity, struggle, it's so much of a story of their lives on the line. >> Every beer is basically, to some degree, some kind of conversation between malt and the sweet and grainy products that come from, flavors that come from malt and hops, which are the herbal, aromatic, floral, citrus, all those things that come from hops. >> I think oftentimes when people think of beer, they think of something that's just cold and something that's fizzy. They think of beer as just being this very clear substance you drink a lot of, but beer, and if you think about how many different foods are out there, beer is much like that too. Beer can be hoppy, beer can be sour, beer can be really malty and sweet. So beer has a wide variety of flavors and potential. I mean, there's an incredibly sophisticated side of beer. >> I mean, I love beer. I think beer is a really fascinating beverage. >> For me, beer is something to celebrate every day. >> Beer represents, well, a lot now for me because it's my whole life. I make my living with beer. I spend 40 plus hours a week talking about it with people. I guess, for me, it represents my dream, my American dream. >> Beer has been around for thousands of years. Some say that its production originated with human agricultural development, others argue that the discovery of the grains fermentation was actually the reason why humans settled down and started to work the land. Whether beer came before or after farming, it's obvious that beer is a long-standing tradition. >> So apparently the first batch of beer was apparently made in Sumeria. >> It's so old. I mean, they say that... When I say they, I mean archeologists, social scientists, believe beer is the oldest fermented beverage and that comes from dating residue on, you know, clay containers from 10,000 plus years ago. >> From the hunter-gatherer to agrarian society where they started collecting grains and then they found that basically when the grain got wet from rain, and then dried, and they put it in a pot, sometimes it would bubble up, and instead of throwing it away, they consumed it. That is considered the first malt beverage ever made. And they would flavor that with figs and everything else. >> It's a very ancient beverage so there's an attraction of the old, that something that's had that kind of continuity. There's the mix of it to science, which is fascinating, but it's also an art. So it's this beautiful blend. It's artisan. It's something that is science and art. >> During the dark ages, beer also went through a gloomy period. >> The monks in Europe were able to maintain the traditions and they are the ones who basically kept the brewing traditions alive. 1700, they started industrializing it, and that is when they also started producing a smoke-free malt, which led to a clearer beer. Along with the invention of glass and then the hoppy. In America, World War II, and the consolidation of everything basically, and prohibition in 1918 to 1930 destroyed most of the brewing industry. When it came back in post-World War II in America, they were basically producing what was known as the lagers, the pilsners that we are used to. >> Since its early days, beer has been bringing people together and getting them to stay together. >> It's a very social thing. You bring people together in a pub or you bring people together in your living room, and you share beer, and that could be one reason. So there's a communal effect that makes you feel good. >> It seems like such a social beverage. It really ties, brings people together. It's a very democratic beverage. It seems like it aids in conversation and community. It's a really creative process to make it. It's got a great blend of art and science to it. >> The beer, originally, if you think back to the idea of beer gardens... Beer was a temperance beverage. There's a place you go, the beer garden, hang out with your family. Dad drinks some beers, play cards with friends, the kids playing around. Beer can be an incredibly healthy part of an everyday life and a family lifestyle. >> Beer has been bringing people together for ages. It was originally homemade, then it became widely industrialized. But some people never abandoned their tradition of home brewing. The American Craft Beer Movement can be traced back for decades to that practice. >> In 1965, in San Francisco, Fritz Maytag purchased Anchor Brewing Company, revitalized craft beer. In 1979, New Albion Brewing Company was opened up, followed by Mendocino, followed by Buffalo Bill's, and that was in the '80s. And then there was the Craft Brewing Revolution in the '80s, followed by a second movement in the late '90s of which Thirsty Bear is part of. And then the 2000s, mellowed out, and about three, four years ago, it blew up again. [+100 BILLION DOLLARS] >> The beer market moves more than 100 billion dollars annually in the United States. [CRAFT BEER] Craft beer has an 11 percent share of this market. Today, there are more than 2,500 small breweries across America. When we started, there were fewer than 40 breweries in all of the United States. So it's quite amazing what has happened. >> Yeah, I think craft here is exploding in America, but we haven't seen the beginning of the growth yet in other continents. So it's gonna be exciting. Hopefully, there's enough malts and enough hops to make everyone happy because demand is increasing. [OVERALL BEER MARKET] >> Overall, beer consumption increased 0.5 percent last year, [CRAFT BEER MARKET] but the craft beer market went up nearly 18 percent. Consumption of imported beer also rose, and exports of American craft beer also increased more than a third. Craft beer has an 11 percent share, but it represents nearly 20 percent of total beer revenue. This can be explained by the higher price for craft beer than regular beer. Better quality comes at a higher price. >> People want flavor, people want uniqueness, people don't want mass-produced, bland, cheap beer. They're willing to pay a little more for something that's special and something that's really well-made with a lot of flavor. >> The initial struggle was to get people over the sticker shock of paying [Andy Fish General Manager Manolia] that seven dollars for a 20-ounce pint of beer. Now I think more and more people get it, people know that you get what you paid for, that if you're paying top dollar, you're getting a superior product. >> It's more malt, more malt flavors, more yeast flavors, more hop flavors, sometimes more alcohol, sometimes not, so you're paying more 'cause you're getting more in return. >> It is so affordable that that it becomes, it's an everyday luxury and it's not something you have to say ''Oh, I've got to save up for this, like, expensive cocktail." You can go out and spend 20 dollars in the bar and have a world-class experience. >> This movement is not only happening in the West. All over the world, more and more people are discovering craft beer and changing their drinking habits. >> You know, everywhere I look right now, you know, South America, Scandinavia, England, New Zealand, Australia, even China, you're seeing places where this idea that people are kind of rebelling against the dominant paradigm of what beer was and they're going out and taking risks and trying new beers. >> I have a friend who is from Brazil. He lives in Rio and he owns two craft beer bars in Rio. >> Japanese, for example, are really big, are developing a taste for craft beer. South America is beginning to emerge. Mexico is trying to pop-up a lot more. And also on a separate note, there's a lot of young German brewers who are beginning, an older generation of German craft brewers, they've been to America, have been exposed to the stronger, more robust flavors and have gone back to their traditional homeland and started making more complex versions of their traditional beer style. In London, for example, I think there's 10-20 new breweries being opened up. So yes, I think it's going back and forth particularly between the European countries. But we're also inspiring a new generation that has never even gone there yet, which is South America, parts of Asia, probably even Central America also. >> Craft Beer Revolution is spreading around the world now. There are many young people starting breweries all over the world. And I think it's going to succeed. I think it really is going to happen in every country in the world. >> So it's clear by now that craft beer is something special. Coming up, we'll dive into the differences between regular and craft beer and we'll discover the secrets of the production process. >> When it comes to basics, beer is beer and it has four simple ingredients, water, malt, yeast, and hops. But what is the difference between a regular mass-produced beer and a craft beer? What sets one apart from the other? >> Most big breweries, the international breweries, make a light lager beer. It's a good beer. It's a very consistent beer. But it's not a very flavorful beer or interesting beer. And they really have kind of made their products a commodity, you know, because they're not very different, they're all kind of similar. >> Every single Budweiser that goes out of a Budweiser brewery is a perfect and consistent product. However, it just doesn't happen to be the most interesting product. I mean, it's a very stable and consistent product. And that is very difficult to do. So I always get my hat off to the larger breweries because they do produce a quality product. >> Craft beer explores a rainbow of flavors. You know, from a very dark stout to, you know, a very light pilsner beer and everything in between, you know, amber lagers, amber ales, porters, just a rainbow of different flavors. And people are excited about that because it enriches their experience of beer. >> And so what we do is, like, we'll... We, as craft brewers, will basically up the ante a bit in terms of, like, say, alcohol percentage, specialty malt usage, amount of hops, hop [inaudible], and you'll wind up a little more of a complex beverage. >> Craft beer is usually a product of thorough experimentation. >> Wish I was brewing beer eventually every single weekend in a very deliberate way of having, ''Okay, I'm going to use this malt, this hops, and this yeast, and then I would only change one ingredient." And then I just got to understand at that time, which was a much simpler time with less choice and fewer ingredients, I got to understand the ingredients really well. What would be the difference if I changed one hop or if I changed the temperature of the mash, which is the temperature you have your malt soaking in hot water. And so I did a lot of experimentation. >> Craft beer is a part of a larger trend in the gastronomic world. >> I think the trend of craft beer is like a lot of trends in consumer products and, in particular, in food and drink. You know, people are looking for something more special than, you know, plain old American cheese or plain old American coffee or ice cream. They're looking for something a little more from their beer. >> And it's not just beer. It's food, it's everything. I've always thought that the Craft Beer Movement is directly tied to the foodie movement in America where people don't want processed... You know, like corporate made foods with artificial this and that. They want farm fresh, they want organic. >> I mean, there's an incredibly sophisticated side to beer. Oftentimes, it's like, here's your bottle of beer. But I think there's so much possibility for presentation. [Joshua Bernstein Beer Journalist] I mean, we're talking about the heady aroma. Think about it, you give someone, you bring out the bottle of beer and show them the appropriate glassware, importantly appropriate glassware and you have this great head, you put the bottle next to it, you open up and it's just this great possibility of potential for the same sort of pageantry that so many people tend to overlook. >> Beer is made from only four very simple ingredients. >> It's just, you know, barley water and hops, and yeast and, and it's awesome. And I think that they're completely absolutely tied together. When you start dealing with too many, you know, weird fillers and stuff, it's not good. I want to keep it as simple as possible. >> But what role does each one play in the production of this delicious beverage? Water is the body of beer and an integral part of it. The water has to be understood and controlled to ensure a high final quality. Its pH is a very important element. Malt is the soul of beer, as it contributes flavor, aroma, color, and body. It's a cereal grain, generally barley, but can also be wheat or oat, which has been partially germinated, then kilned or roasted. During the brewing process, starches are converted into fermentable sugars, providing food for yeast. Yeast feasts on sugar and expels alcohol, carbon dioxide, and flavor compounds during fermentation. The biggest difference in types of yeast is between lager yeast and ale yeast. This determines the names of the beer varieties. And last but not least, hops. Craft brewers use hops like chefs use spices. Hop vines produce pungent flowers that add aroma, flavor and bitterness to craft beer. Hop's bitterness balances malt's sweetness. They also act as a preservative. There are hundreds of hop varieties, each with their own bittering, flavoring, and aromatic properties. They provide floral, citrusy, piny, fruity, earthy, and spicy qualities to the beer. We already have the four ingredients. Now let's look at the process of making a beer. The four ingredients go through milling, mashing, boiling, fermenting, maturing. Let's discover the secret about this meticulous process. >> Hi, my name is Dane. I'm a brewer here at Magnolia. First, we'll start up there. That's where our mill is and all of our grain. [Dane Brewer Magnolia] That is where we crack the grains, [Dane Brewer Magnolia] we expose all the starches, [Dane Brewer Magnolia] and then it is carried up through that corkscrew to our grist case, [Dane Brewer Magnolia] where we'll mash in the next day. We'll mash in below in the mash tun, mash and lauter tun. We'll mix the crushed grain called grist with hot water. That is called mash. That's mash tun, and that's where all those starches will be broken down by enzymes into simple sugars, creating the food necessary for the yeast. We will essentially filter that wort, the sugar water, the wort. We'll filter that out and collect it into the kettle where we'll boil it. That's the bigger, taller tank on the left here. During boil, we will add hops for a different flavor, some aroma, kind of the balancing act of the malt. It's the bittering aspect. So that's where we add our hops, we'll cool it down, and then we'll move around the corner into the fermentation tanks. So follow me. From there, we'll let it ferment, we'll add our yeast, we'll let it ferment for about a week-and-a-half, then depending on the beer, we'll add dry hops to the top of the tanks for IPA and our pale ale. Here we have two bright tanks. We have our 60 barrel and our 30 barrel to the left. Again, this is where things will get clarified and they'll get carbonated. So once we pull some of those off, we'll carbonate it, and then it's ready for this machine over here, the keg filler. That's that. Once it's in kegs, it goes upstairs, and then pulled through the taps for you guys to enjoy. >> This process changes according to the variety of beer. >> Process depends on the beer, different yeast strains require different lengths of time in fermenters. Our typical IPA is gonna be fermenting for about a week-and-a-half, then we'll dry hop it for five days. So now we're above a little over two weeks, and then we need to get it cooled, clarified, and carbonated. So we're looking at about a three-week process from here to there in the restaurant for our IPA. >> I think, you know, when you brew beer in contrast to when you're making food, we make either 465 or 920 gallons at a time, 15 or 30 barrels at once. So you can't mess up. You mess up a huge amount of money and product goes literally down the drain. You want to sell it fresh, fresh product always besets the unique nature of a brewery restaurant. >> For every beer, the process is very carefully looked after. But what really defines a flawless beer? How can it be described? >> I say free of defect and by that I mean the numbers are correct in terms of like, ABV, SRM, IBU, so the color, the alcohol content, the bitterness, always good things, consistently... Also, and more importantly, the beers are balanced and they do not have basically any defect, and by that I mean, there's things like, diacetyl, acetaldehyde, they're not oxidized, so the beer is fresh, it's perfumy and fragrant in the correct way. >> Now that we have a clear idea of how craft beer is produced and finished off, we'll go deeper into understanding its very unique characteristics. Coming up, we'll discover many more things about craft beer. Beer is a very complex beverage with diverse qualities. When it comes to the way we experience the quality of the beer, there are countless elements that contribute to the final product. Our senses are the doors through which we perceive these elements. Appearance is how the beer looks, the visual aesthetics. It can be filtered or unfiltered. It can have thick or thin foam. Now feel is the first contact of the beverage in our mouth. It's determined by its body, carbonation, creaminess, warmth, and astringency. Among other elements, the aroma reveals the information that our nose gets. Hops, malt, and yeast add aromatic qualities and vary in degrees. The enticing aromas of malt, bread, fruit, flowers, spice, pine, citrus prime our senses to enjoy the beverage. Finally, there's flavor. It's nothing less than a combination of taste, aroma, sensation, and experience. Craft beer has a very wide array of flavors, sweet, malty, bitter, bready, spicy, sour, fruity, nutty, roasted, and even chocolate. These perception elements reflect a product with very unique characteristics. Sensations relate to temperature, texture, body, acidity, and carbonation, and many other qualities. Beer can be hot or cold, thin or heavy, still or sparkling. The roast acidity, carbonation, and the amount and kind of hops determine its intensity. Taste elements are defined by if it's sweet, sour, or bitter, and the percentage of alcohol that it has. Flavor elements are a combination of taste and volatile compounds. >> I think it should be balanced, it should be drinkable, that is to say, it shouldn't be like super high in alcohol, but balanced, easy drinking, and just delicious, you know, it should just taste good. It should be appealing. And then it should have no adjuncts or nonsense in it. It should just be barley water, hops, and yeast. >> We are now ready to see how these elements display into the different beer types. One of the most distinguishing features of craft beer is the amount of varieties there are. Beer varieties include dark lagers, wheat beers, pilsners, and pale lagers, pale ales, India pale ales, brown ales, stouts, strong ales, wild and sour beers, and specialty beers among many others. The colors range from a pale straw yellow to medium amber, all the way to a very dark black beer. The color of the beer is defined by the variety of malt and its degree of roasting. >> So we have such a variety of beers from super hoppy [Ron Silberstein Founder and Brewmaster Thirsty Brewing Company] to lagers, cast condition to barrel age, from nitrogen conditions, [Ron Silberstein Founder and Brewmaster Thirsty Brewing Company] stouts and ESPs to a Panda Bear, [Ron Silberstein Founder and Brewmaster Thirsty Brewing Company] which is light ale infused with whole organic cocoa nibs and vanilla beans. So the style and complexity of beers we're doing, right now we have Imperial IPA we call White Cloud, 'cause it's a whipped beer or a Belgian yeast white beer, but it's a double IPA, it's a marriage of two styles. We have a rye IPA, which is, again, a very unique grain, a spicy grain rye, but made with a very hoppy IPA. But often, our two specialty beers can be barrel age, where we use different yeast like brettanomyces, lactobacillus to sour or to add very interesting character to the beer, an oak barrel character. >> Our first beer was Brooklyn Lager. [Steve Hindy Founder and Chairman Brooklyn Brewery] It's still our best selling beer. It's about half our production. But it's very interesting. To sell in this craft beer segment, you have to keep exciting your customer. In the autumn, we have an Oktoberfest, we have the Pumpkin Ale, we have the Brooklyn Black Chocolate Stout, we have the winter ale, it's very important to have something new to excite your customers. We also make a special beer in draft every quarter. So every three months, we have a different draft beer that is sold to the bars and restaurants. >> We are talking about a lot of beer. The numbers in this market are stimulating. There are nearly 3,500 breweries in the US. Most of them are craft breweries. Less than 10 years ago, that number was barely 1,500. The increase in the amount of barrels produced is even more impressive. It has almost tripled, going from 8.5 million in 2008 to more than 22 million in 2014. Small brewing companies employ more than 115,000 people. >> When I started out doing it, you know, we had maybe 1,000 breweries in the US, and now there's more than 2,500 and growing with another, like, 1,500 in planning, if not more. People are drinking fewer 24 packs of beer and they're drinking more, you know, more IPAs, more imperial stouts, more special beers, beers that are... They're not buying by the case anymore. And so I think once we start seeing numbers go up to 15 percent of the US market, 20 percent of the US market, you're gonna see some serious change right now. You're gonna see craft beer over at baseball stadiums, at football stadiums, you're gonna see craft beer everywhere. So you're seeing this type of integration of craft beer and beer in general into our daily life. >> Talking about integration, there is an entire science to how beer should be combined with food, the science of pairing. >> There's three basic principles of pairing, and that's cut, compare, and contrast, the three Cs in there. Cut would be, you know, what you're gonna have, say, if you have like, fish and chips or something that's a little bit heavy, you'd maybe go for a crisp, comparing would be looking for likeminded flavors. So if you have, for example, if you're having a chocolate cake, you'd maybe have a chocolaty stout. So you're looking for echoes and marriages in the flavors. Then contrast is kind of the most complex one. And so with contrast what you're doing is looking to kind of fill-in-the-blanks, like, for example, IPAs, like, a bitter IPA and carrot cake are this really excellent pairing. You wouldn't think about that. But, you know, they just work so well together. And then another one would be stouts and oysters. So these are things that are not really, intuitively, but they're kind of, serve you the idea that they're kind of like filling the blanks of one another. You have these scrubbing bubbles that kind of like, if you're having a burger or having fries, kind of take away the fat on there and get it away. You have like, beers pair great with, like, really stinky blue cheese. There's really endless possibilities in flavors, with beer to find the right pairing. >> That depends on the beer. But you could pair just about any food with the right beer. I would say one of my favorite things would be like a spicy Indian food with like a nice IPA or Saison, I think that works really, really well. Pilsners and burgers are great. [Dave McLean Founder and Brewmaster Magnolia] >> I think the real strength of beer and food [Dave McLean Founder and Brewmaster Magnolia] is that beer goes really well with a lot of foods. Beer lends itself nicely for pairing, because it's a cooked product, because it has complexity from that, from having multiple ingredients kind of talk to each other and tell a story together. >> We need to develop more food and beer pairings, understanding that beer is more than just something that goes with pizza and barbeque, but has a range of flavors that can accompany any cuisine. So I think we need to work on that a lot more. >> The beer industry is unlike any other industry and that everyone wants everyone to succeed [Andy Fish General Manager Magnolia] and we feel like there's this deep love for beer, [Andy Fish General Manager Magnolia] and everybody loves beer, that there's sort of enough for everyone. It's this really interesting and really cool kind of thing. >> You know, I think, one of the most important lessons [Steve Hindy Founder and Chairman Brooklyn Brewery] that I've learnt about business is you have to learn from other people and you have to trust other people who have experience. >> The really interesting thing in my opinion about the craft beer industry is that is how communal the industry is, it's less competitive and really more collaborative. You'll... We feature other breweries guest beers all the time, we try to feature as many local guest beers as we possibly can to encourage people to try our favorite great beers that we might not necessarily make. >> This sense of collective support is also prominent in the larger craft beer community. The consumers, they feel emotionally attached to their craft breweries and want to support them. [Joshua Bernstein Beer Journalist] >> The best way possible that people are supporting their local breweries [Joshua Bernstein Beer Journalist] as kind of they do their local sports teams, that beer becomes a sense of pride, [Joshua Bernstein Beer Journalist] and that people want to support the things that are made locally. >> People, more and more, are looking for local products, locally produced products, locally identified products. People are, I think, looking for a richer experience from a lot of consumer products. >> It's very exciting and it brings people back, like, the connection that this is done by real people, and taprooms, breweries become these, really, community centers and these meeting places. I used to meet consumers who were very, "I drink this beer, this is my beer, I'm gonna drink this till the day I die." I think consumers these days are far more promiscuous, they want to try different beers, they're also willing to take risks and they're willing to try unique interesting off-beat beers. So you can take more risks and your consumer and the drinkers will travel along with you to the outer fringes of flavor. It's hard for the breweries to keep people interested over and over and over again because, you know, the market used to be bread and butter, like, stock up your supermarket cart with like two 24 packs of beer and, like, make your money, go to the next. And that's not the case anymore. I mean, there are so many beers in the shelves and how do you attract people's attention. So I think that's a big challenge on there right now. So I think people always want the next thing to talk about, the next thing to try. So you're watching people buying single beers, not buying, like, one bomber of a beer, and not buying a case anymore. >> I like when people tell me that they drink Bud Light [David Cichowicz Founder Good Beer] because then I can get them onto something that they're gonna like even more. A lot of times people won't do that, they're embarrassed to say that they drink that kind of stuff, so they'd go like, "Oh, I like lots of stuff, you know, I'm really wide open, whatever." >> Craft beer consumers are open to learning and becoming experts. Coming up next, we'll learn more about them. Also, we'll get into the marketing challenges and the outlook for the future. [CONSUMERS, NEW TRENDS] [REVOLUTION ZOOM IN ON ORDINARY PRODUCTS] [BEER] >> The Craft beer world is constantly evolving and a lot of changes are taking place. If we talk about gender, what is actually happening in the real world is shattering very strong preconceptions. >> One of the biggest surprises I had when I opened the store is before I opened the doors, I thought it would be like 90 percent men. And then I found that... And I thought the women that came will be dragged by their boyfriends or husbands. So I thought they'd be there just because they had to go. And then I found girls coming in by themselves, young women, young attractive, well-dressed, well-heeled women drinking beer. >> I think, oftentimes, beer gets portrayed as a very masculine pursuit, that it's a very male-dominated world, but I mean, I think, that is such a disservice, because, you know, there are tons and tons and tons of really excellent female brewers out there. A lot of the biggest beer geeks I know are women. >> There's women that know tons about beer, which, you know, is definitely not what I thought. Before I opened I thought it would be a small minority of them that were really into it, but it's a lot, I mean, they've got to be 40 percent of my clientele, is what I might sell. It's cool, it's really cool. [Dave McLean Founder and Brewmaster Magnolia] >> It's not all that masculine. [Dave McLean Founder and Brewmaster Magnolia] We have a really diverse crowd of people that comes in here and it's got... It's an amazingly complex beverage with a lot of potential to enjoy it and a lot of different applications and occasions. Sometimes that's, you know, very choreographed and, you know, multi-course beer dinner. Other times, it's the backyard barbeque, grilling or something like that. >> I think with a beer geek, it is what... I think, a beer geek, in the best way possible, a beer geek is someone that gets really excited about trying new beers, that gets excited about going to the bar and looking down the list and saying, "Oh, I want to try that." >> I think that people love to come to the gastropub setting, because they like to get nerdy about beer, they like to kind of sit and sip and taste and talk about what you might pick out of it and what someone else might. [Ron Silberstein, Founder and Brewmaster Thirsty Bear brewing Company] >> We get all ages, to be honest. We'll get people, I mean, kids come in here and eat food but we'll get young people in their 20s to beer geeks and all that in their 40s, 50s, 60s. Whether you're an artist, a scientist, a lawyer, a bus driver, a teacher, everyone drinks beer. It's something that everyone shares. And I think I like that social lubricant that it is, you know, along with the food, and to provide a space where people could enjoy themselves and all that, that just seemed very enticing. >> I'm also just seeing how savvy people are getting. And of course my sample is New York City, Manhattan, for the most part, I mean, I get foreigners, I get tourists, and stuff like that, but they are very tuned in anyway. Because they are reading about the stuff online, they are getting some stuff in their country. >> When it comes to the consumer trends, there is a big one that is remarkable to many. >> One of the biggest surprises I've seen in craft brewing [Brendan Doble, Brewmaster Thirsty Bear Brewing Company] as an American craft brewer, and this is basically a comment on the American palette, is that the Americans have embraced sour beer, and that is quite surprising considering the stereotype of Americans, like, really enjoying sweet. We've kind of been raised on sugar in a way and we drink a lot of Coca-Cola, you know, we think we like sweet beers or sweet flavors. When I opened the store and I used to have Cantillon and Drie Fonteinen, sour beers sitting in the fridge, just sitting, no one would buy them. Now, just a few years later, if a get a case of Cantillon and I post it, it's gone within an hour. People will leave their desks at their job when they see that post, and they will run down here to buy it. And it used to just sit there, it's like, it shows how much the palette has changed. The sour beer is not for everyone, it's definitely, you know, you kind of have to build your palette up to it. >> I've been watching craft brewers coming back around and they're making really fantastic full-flavored lagers with drummed up little bit maybe, like, a bit more hoppiness, a bit more bitterness, a bit more full-flavored, different ingredients, and so it's making people rethink this idea of lagers. And also the fact that people are really embracing old fashioned styles of beer again, that you're watching people really diving into the history books. And that to me is what has been really surprising for me that people want... They're going, coming back down from the alcohol ladder, they're climbing back down. They want flavor but they want to drink several beers in a session. >> So that is something that has been changed a lot is we've doubled our hop usage for our beer. There has been an increase in hoppings. And I think that people nowadays want more hop in their beer. >> There's a trend towards bigger, bigger, bigger, bigger beers and people are doing IPAs, is hands down India Pale Ales. The bitter, hoppy, high-alcohol beers are hands down the biggest sellers within the craft beer segment. >> Other current trends include using whiskey, wine, and cognac barrels to ferment the beer, dry hopping with Indian Pale Ales varieties and low alcohol varieties that make it possible to drink more beers. >> People are just very interested in just different ingredients in beers now, trying to find something straight from the farm, maybe a fruit, maybe a pear, maybe... I don't know why I said that, maybe a squash or a pumpkin or different grains, gluten-free beers. You know, people are experimenting with everything. >> The gluten-free started growing so much, it became very difficult when someone's like... "Do you have any gluten-free?" Then we're like "Yeah, Sure." And then we have to run through the whole store and show them all of it. So one of my employees had suggested, why don't we just put them all together along with the cider, and that way it will just go, there they are right there, when you point, it's so much easier. >> Marketing plays a very important role, in the craft beer industry where budgets are not so huge, it takes some creativity. >> I think everybody that pours their life and passion into craft brewing, typically understands that and tries to promote it a different way, which is based on its flavor characteristics and how to enjoy it. >> I stood in front of the place while the construction crew was building it out all day, and as people walked by they are like what's going on in here, I would tell them what it was. So I was just telling the neighborhood what was going to happen in a couple of months when this place was opened. So there was a lot of word of mouth. I originally started out not having a website at all. The website was strictly a redirect to Facebook. So that got us to have, you know, over I think 3,000 followers in the first year alone, because if you wanted to know what was on tap, if you wanted to know when events were, you had to follow us on Facebook. I did that deliberately because I wanted there to be a huge social media following. I figured, if you only gave people the option of Facebook and Twitter, they were going to have to follow. >> So I think, any smart brewery worth its salt, when you open up, you have to have a very active Twitter feed, a very active Instagram, you know, Facebook is important as well, but I'm seeing a lot of the big activity... Facebook is good for talking about releases, I think, talking about events, you know, Twitter is great for news and interaction and Instagram is great for sharing. >> Marketing is important because there's still a tremendous amount of lack of knowledge on behalf of the consumer. Most people, when they look at a beer, they'll judge the beer by its color, and say, "Oh, that's much too strong for me," even though it's, say, 4 percent alcohol. So there are, like I said, over 100 different styles of beer to choose from, and that leads to a tremendous amount of education opportunities on our behalf to say try this. So yes, we have out work cut out for us, and yes, it is going to require some more advertising and marketing. >> These strategies among other things have driven market growth. >> Craft beer now is 10 percent of the US market. I'm very confident that it'll be 30 percent in the next few decades. >> It's definitely becoming... Craft is definitely growing exponentially. It's a huge deal. Every week, every month, the big guys lose market share and the small guys gain a little bit. So that's really good. >> A growing trend in the craft beer segment is caring for the environment, and searching for a more ecological way of doing things. This is the case of Thirsty Bear, which is the only certified organic brewery in San Francisco. >> Organic for me is a statement about the environment. In other words, any soil that is cultivated organically is gonna to be healthier. >> What are other challenges and perspectives in the craft beer market? >> The biggest challenge is getting the rare specialty beers that your customers want and getting enough of them to make them happy, it's impossible, you know, it's a task that you cannot ever make people happy because there's too much demand and not enough supply. That's the nature of the beer though, you know, a craft beer, small batch stuff is literally very, very small, but the more that the demand grows, which it does every year, and the supply is not keeping up with that, just not enough of it to go around. So that's always very frustrating, but you have to do what you can, talk to the suppliers, try to, like, you know, get them to prioritize you. It's tough, there is no easy way around. It's not like the brewery is just going to make more for you. >> Keeping up with demand, everyone of these tanks is consumed in roughly 30 days. So it's a costly producing beer. We brew a lot, a lot of beer. >> Craft beer is going a really good place and as long as we make good beer and keep connecting with our customers and really don't lose sight of any of the fundamentals of running a good business, I don't see anything that's a major threat. I do think the biggest concern of all right now is that Magnolia and all of our peers continue to make really, really good beer. Because I think that the last thing we want to have happen is all this growth that's happening, more and more people are flocking to craft beer as a beverage they want to try and drink, and make part of their lives. And if the quality isn't good, people will start to dismiss it, they're like, "Nah, that's not so great, I don't like that." So it behooves all of us to make sure that, you know, we're all making the best beer we can, because that's the one thing that you could probably lose customers, more than anything else. >> So yes, craft beer is for everyone. And that's what's going to happen in the future. I mean, eventually once people have an introduction to craft beer, it's more than likely they're gonna stick with it because it's like, we all grew up eating Wonder Bread, but then artisan bread starts showing up, why go back to Wonder Bread? >> We export to more than 20 countries. The biggest is Sweden. We're the biggest imported beer now in Sweden and we're growing very, very rapidly. We are just partnering with Carlsberg to build a brewery in Stockholm. We also sell a lot of beer in the UK, and that market is growing very quickly for us. So the export business for us is a very exciting business. >> It's gonna be a good future, but I think I'd like to open another one at some point. But I want to just like, kind of, see how things shake out at the market for the next, like, couple of years. I talk to my customers a lot. There's so many smart people that come in here, my staff, we all talk about beer, read stuff online. So you're always learning new things. I feel like I learn something new all the time. I never feel like I know a lot about beer. I always feel like there's always so much more to learn, to try things. >> You'll see that people will just basically constantly drink what we consider a better product, in terms of these artisan products. I don't think you can stop it. And yes, everyone should drink craft beer. >> We are not sure if everyone will end up drinking craft beer, but one thing is irrefutable, this artisanal beverage is conquering new palettes and starting a real revolution among those who enjoy the ritual of relaxing and having a cool delicious beer. [Beer] [CONSUMERS, NEW TRENDS] [REVOLUTION ZOOM IN ON ORDINARY PRODUCTS] [WOBI World of Business Ideas]

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Duration: 48 minutes and 12 seconds
Country: Andorra
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Posted by: wobi on Aug 17, 2016

Revolution: Beer

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