'Gateway' brands mark a crafty new chapter in Melbourne's beer wars
The theory of gateway drugs is that "soft" such as marijuana can lead to "hard" such as heroin. But what about gateway beers?
This is the somewhat cruel tag given to the corporate craft brands made and owned by the two giant Australian (but foreign-owned) brewing multinationals churning out the stuff that clogs every bottle store: Little Creatures, James Squire, Matilda Bay and White Rabbit.
Yet in the latest chapter of Melbourne's 150-year-old beer wars, the booming independent craft sector has branded them "faux craft" and "gateways" which might end up backfiring on the big beer companies by leading punters to the booming independent sector.
Mainstream beer sales (which includes VB, Carlton Draught, Tooheys) have plummeted to WWII levels while craft beer is up 20 per cent a year. One independent brewery a week opens in Melbourne, often in outer suburban areas in old factories and warehouses. But Carlton United Breweries and Lion, the big brewers, have managed to regain control of the craft market by buying brands and making their own.
In industry jargon these brands are "sessionable" and "easy-drinking" meaning "craft-considerers" will not be put off by very strong beer or beer with an unusual taste.
The latest moves are Lion's XXXX Golden Ale and Tooheys Darling Golden Ale. These were made because Lion did very well with their James Squire One Fifty Lashes Pale Ale, a drop which "resonated strongly with the beer drinking public," according to Melbourne beer consultant Kirrily Waldhorn, whose company name is Beer Diva. "It is non-confrontational but still a little step up in flavour and quality."
Craft beer entrepreneur Trevor Birk, from Bendigo, a regional city he is trying to turn into the artisan beer centre of the entire known universe, says they are typical "faux-craft" but may "gateway" drinkers in the highly competitive market toward true independents such as Holgate (of Woodend) or Bridge Road (of Beechworth).
CUB have just released Lazy Yak to try and "gateway" drinkers into their own popular Fat Yak, their thinking being that those who give it a go have "developing" palates. The company also has a Peroni Piccola in a 250ml bottle which looks like one of those fancy imported mineral waters. It is being marketed as "unisex."
Supermarket chains Woolworths and Coles have launched their own "craft" brands Gage Roads and Steamrail. And the Australian Competition and Consumer Commission has elevated to a "priority" allegations that the CUB and Lion have used unorthodox methods to win and keep pub tap contracts over rival craft brewers. The draught beer market is worth $2.5 billion a year.
It's the artisan independent breweries that are risk of being squeezed out. They have a four per cent market share. Australia has 300 independents; Victoria has 53. The Craft Beer Industry Association's Peta Fielding, from Burleigh Brewing in Queensland, says her members are "a bright spot in Australian small business."
At least six new boutique brewers expect to open in Melbourne within the next two months. Dan Dainton, a former brewer for James Squire and Holgate, is about to start making his own range called Dainton Brewing from a former car yard in Carrum Downs, including a double stout – "a very big powerful beer," he says.
In Cheltenham, Dereck Hales of Bad Shepherd beer has joined forces with Gardenvale's Wolf of the Willows in a brewery and American food restaurant amongst factories and gyms. In Dandenong South Callum Reeves and his brother Nat Reeves are converting an old factory into their bespoke Kaiju Brewery, named after a Japanese anime monster. They will be making niche beers as strong as 11 per cent.
Beer journalist James Atkinson, the editor of Australian Brews News, says it seems a new boutique brewer opens every week. He says it could turn into a back to the future scenario with Melbourne and regional Victorian cities reverting to how they were 100 years ago. "Every local area could have its own local brewery," he says.
CUB's head of brands, Tim Ovadia, thanks the independents for "forcing us to lift our game." He calls it a battle for "share of throat" and that the crafty beer boom is riding on the wave created by food culture which emphasises regionality and presentation – "the culinary carpet ride," he says.
