Tuesday, May 10, 2011

Beer News - Big Brewer Battles - All along the Mexican Front

To go along with the theme from my post about the battle for Illinois, here is another example of how economies of scale can seriously limit the craft brewing industry and how craft brewers just keep inventing their way out of it.

This story reported in Bloomberg Businessweek () tells about the battle for the souls of beer lovers in Mexico. Mexico is a land dominated by two companies, which control nearly 100% of the domestic market for beer.

There is a movement, however, to liberate the souls of beer lovers in Mexico from the bland flavors of Corona and Dos Equis. It is called “Por la Cerveza Libre,” of “For the Liberated Beer.” The craft brewers in Mexico City and other metro areas have been using social media to open craft-beer friendly bars and stores.

This is a prime example of why I feel that a level playing field with the big boys is not necessarily a bad thing. While it makes it a lot harder to gain market share, it requires that small brewers be inventive and cooperative to educate their customers and increase awareness and love for craft beer. I believe having to overcome the bigger breweries on the playing field is the reason that craft beer lovers are so passionate about craft beer in the United States. I believe one of the reasons that craft beer has gained such a large share of the market in the United States is precisely because they were the underdogs for so long. Everyone loves an underdog. Everyone loves beer. It’s a match made in heaven.

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