Can Craft Beer survive the cost of living crisis?
Marx’s analysis of capitalism has several points which are relevant to the cost of living crisis and the current state of craft beer. Firstly that capitalism while promoting a free market ideology in fact tends towards monopoly. Secondly that it is a system based on crisis. In order for profit to be made there must regular clear outs of less efficient areas.
None of this helps if your favourite craft beer brewery or bar is struggling but given the wide impact of the cost of living crisis and the Government’s reluctance to do much to help SMEs there will unfortunately be trouble ahead.
I don’t know if Pete Brown had his copy of Capital Volume One to hand when he wrote about craft beer for the Sunday Times (4th December, paywalled but see photo above) but his article certainly constitutes what nineteenth century radicals would have called really useful knowledge about the state of craft beer.
While numbers of small independent brewers and bars are struggling what many would see as craft beer thrive. I refer of course to the likes of Camden Helles and Beavertown Neck Oil, owned by global brewers ABInBev and Heineken respectively. There is nothing wrong with these beers. Quite the opposite. They are brewed at state of the art breweries in North London (tofu and copies of the Guardian optional)but this is big business. It’s a world away from the quirky craft beer operations designed to meet local tastes and experimenting with new styles that is what many (even those drinking Helles and Neck Oil) associate with craft beer.
The developing crisis has been underlined in the last few days with news that Wild Beer has gone into administration and Twisted Wheel in Warrington has decided its uneconomic to continue.
There are always specifics in such matters. Wild Beer crowdfunded to help build a new brewery in 2017 and raised well in excess of £1m. The brewery has however not been built, or even started, and those who invested are very likely to lose their money. The beer remains excellent and often ground breaking but the finances have looked doubtful for a while. Meanwhile Twisted Wheel started just before COVID in early 2020 and might reasonably be placed in the category of hospitality start ups that however good just don’t make it.
However the wider picture is that if the economy was doing well and people had money to spend such difficulties could have been overcome.
Craft Beer can survive the cost of living crisis but as Pete Brown concludes, this winter it’s a case of use it or lose it. Of course for many struggling to get by that will be an issue in itself. Why not organise to get a pay rise too?
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