Original settlers in America used the native corn to make the first beers, which were all warm fermented ales. Brewing grew along the east coast as the population centers grew. Lagers were introduced to the American brewing scene in 1840 by John Wagner, who procured bottom fermenting lager yeast from Bavaria and began brewing in Philadelphia. During the middle of the 1800's millions of immigrants came to the U.S. Many came from Germany and Ireland, big beer drinking countries. The middle to late 1800's were a heyday for brewing in the U.S., and lager style beers made up the vast majority of the beer produced, and breweries began experimenting with adjuncts such as corn and rice to lighten the beers, and to hedge against any possible shortages of barley. While breweries in the east had the larger population centers and a solid head start, brewers in the Midwest eventually outpaced those in the east. In Milwaukee, men such as Frederick Pabst, Joseph Schlitz, Carl Best and Frederick Miller all became very influential in the brewing business. In St. Louis, Adolphus Busch married Eberhard Anheuser's daughter Lilly, and went into business with Anheuser; and, spurred on by friend Carl Conrad who had tasted the crisp lagers in the Czech town of Pilsn, began brewing Budweiser. The brewers in the Midwest are credited with a strong entrepreneurial spirit that advanced new technologies in brewing to help them ship their beers throughout the U.S. Midwestern brewers are credited with bringing such advances as artificial refrigeration, pasteurization, automated bottling lines and refrigerated rail cars to the U.S. brewing scene. They brought experienced European scientists into their state of the art labs to help advance brewing techniques. By 1910 there were 1498 breweries in the U.S.
However the late 1800's also saw a growing opposition to beer in the U.S. Starting around 1850, the temperance movement began in the United States when Maine passed a prohibition law. Within 5 years, 11 other states followed with their own prohibition laws. Over the next few decades various temperance organizations sprung up, and eventually coalesced into the Anti Saloon League (ASL) led by Wayne Wheeler. By 1902 the ASL had offices in 39 states and territories. The brewing industry did not take the movement seriously, and by 1909, 46 million Americans lived in dry territories. Unable, or unwilling to band together to fight the temperance movement, almost 500 breweries went out of business between 1909 and 1919. The U.S. Brewers Association finally reacted in 1913, sponsoring the National Association of Commerce and Labor, which was primarily made up of grain and hop farmers, glass and bottle cap manufacturers, wholesalers, retailers and saloon keepers. The organization turned to the National German-American Alliance, a group dedicated to preserving German culture, for help and support in fighting against the temperance movement. However, when the U.S. went to war against Germany in World War I, the association with this alliance actually hurt the Brewers Association.
Prohibition began in May of 1919. Some breweries were able to stay afloat by making things such as near beer, ice cream and other products. Organized crime began making alcoholic beverages, and a violent era ensued. Prohibition was repealed in 1932. By 1935 there were only 703 breweries in the U.S. Over the next 45 years beer consumption rose in the U.S., but the mass production of beer resulted in a consolidation of the number of breweries in America. By 1978 there were 89 breweries in the U.S., owned by less than 50 companies. The Midwestern breweries were able to take over the national market by mass producing beer cheaper than the smaller urban breweries. Mass advertising and television spread the word about such beers as Budweiser, Miller, Pabst and Schlitz, further entrenching them as top national producers, and leading to the reduction in the number of breweries overall. Light lager style beers ruled America.
Things began to change in the 1970's. Fritz Maytag bought the failing Anchor Brewery in San Francisco, and revived the traditional Anchor Steam Beer, a lager fermented in open vats at higher temperatures like an ale. Jack McAuliffe was intrigued by the beers he encountered in Scotland while in the Navy, and opened the New Albion Brewery in Sonoma, California upon his return to the U.S. in 1976. This is credited as being America's first "microbrewery." New Albion only lasted 4 years. Other early "microbrewers" were men such as William Newman, who opened the Newman Brewing Company in Albany, New York in 1979. Ken Grossman and Paul Camusi opened the Sierra Nevada Brewery in Chico, California 1982. On October 14th, 1978, Jimmy Carter repealed prohibition era legislation that outlawed the brewing of beer at home, and home brewing and subsequently the craft beer movement in the U.S. really began to take off.
According to the Huffington Post, as of December 13th, 2012, there were 2751 breweries operating in the U.S.
The Brewers Association was established by Charlie Papazian in 2005 through a merger of the Association of Brewers and the Brewer's Association of America. It is a not for profit trade group whose stated purpose is to "promote and protect small and independent American brewers, their craft beers and the community of brewing enthusiasts." The Brewers Association defines a craft brewery in 3 ways:
Small: Annual production is 6 million barrels or less.
Independent: Less than 25% of the brewery is owned or controlled by an alcoholic beverage industry member who is not themselves a craft brewer.
Traditional: A brewer who has either an all malt flagship (the beer which represents the greatest volume among that brewers brands) or has at least 50% of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor.
The Brewers Association is headquartered in Boulder, Colorado, and sponsors the Great American Beer Festival, considered by most to be the largest and most important festival featuring only American beer. The Brewers Association works toward distinguishing craft brewers from the large corporate breweries that are trying to gain market share by imitating the craft movement. The Brewers Association is currently supporting a bill in the House of Representatives called H.R. 494, the small brewers and expanding work force act:
Under current federal law, brewers making less than 2 million barrels annually pay $7 per barrel on the first 60,000 barrels they brew, and $18 per barrel on every barrel thereafter. The Small BREW Act would create a new rate structure that reflects the evolution of the craft brewing industry. The rate for the smallest brewers and brewpubs would be $3.50 on the first 60,000 barrels. For production between 60,001 and 2 million barrels the rate would be $16 per barrel. Any brewer that exceeds 2 million barrels (about 1 percent of the U.S. beer market) would begin paying the full $18 rate. Breweries with an annual production of 6 million barrels or less would qualify for these tax rates. (Source: Brewers Association press release of 2/7/2013).
On the other side of the beer business in America are the large domestic breweries, mostly now owned by corporations. Two major corporations now control well over half of the market share of beer sold in the U.S. They are Anheuser Busch/InBev, and Miller/Coors. According to Bloomberg Businessweek, ABI controls about 48% of the current U.S. beer market, while CNN reports that Miller/Coors controls another 29%.
ABI was created in 2008, when InBev, makers of European brands such as Becks, Bass and Stella Artois successfully completed a hostile takeover of Anheuser-Busch. The company is run by Brazilian born Carlos Brito, whose first order of business was to consolidate these worldwide breweries, and to cut corners wherever possible. Beck's and Bass are now brewed in the U.S. InBev has consolidated the buying of their ingredients such as hops and beechwood for aging, and many question whether the beers they currently produce taste the same as the original versions. Currently InBev is trying to buy out Mexico's Grupo Modelo, brewers of Modelo, Corona and Pacifico. The U.S. Justice Department has filed an anti-trust suit to prevent the sale, claiming that if it goes through, InBev and Miller Coors would control between 75% and 80% of the beer sold in the U.S. Many believe that InBev would next turn its sights on acquiring Miller/Coors.
The competition between the large brewers and the small craft brewers has led to a blurring of the lines between the two. Many breweries that began as small craft breweries, such as Leinenkugel, Goose Island and Kona are now owned by the corporate giants, and those beers are not necessarily brewed in their original hometown breweries anymore. The big breweries have also branched out by opening smaller brew houses that produce beers that imitate the smaller craft beers, in an effort to regain some of the market share that the craft brewers have been steadily chipping away at. Coors has A.C. Golden, which produces Blue Moon and Colorado Native. Anheuser Busch/Inbev produces Shocktop and has been coming out with newer craft style beers under the Budweiser label. This has led to a campaign by the Brewers Association to call attention to the trend, which they call Craft vs. Crafty.
But the surge of new breweries and beers continues to be driven by the small craft brewer and home brewers. At the other end of the spectrum of the large corporate breweries are the nanobreweries. These are basically one step up from home brewers, with very small production ability, usually around 10 gallon batches, brewed in garages and basements for the enjoyment of very few local neighbors. Of course these nanobrewers dream big, hoping to one day duplicate the success of the craft brewers before them. Did you know that Sam Calagione, founder of the highly successful Dogfish Head brewery started as a nanobrewer?
Chip Bartsch
Beer Buyer
West Vail Liquor Mart
Much of the information on the history of beer in the U.S. comes from the fantastic book, The Oxford Companion to Beer, edited by Garrett Oliver.
Other sources include:
The Brewer's Association web site: www.brewersassociation.org/
Bloomberg Businessweek - The Plot to Destroy America's Beer: www.businessweek.com/articles/2012-10-25/the-plot-to-destroy-americas-beer
CNN - Bud, Corona don't mix, Justice says: www.cnn.com/2013/01/31/us/justice-beer
Slate - How nanobreweries are revolutionizing the American beer industry: http://www.slate.com/articles/business/drink/2012/12/nanobrewing_how_tiny_beer_making_operations_are_changing_the_industry.html
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