The growth of the non-alcoholic beer, wine, and spirits industry the last 5 years in the US has been nothing short of astounding. From bland tasting, to bad tasting, few options the industry has grown to many restaurants having multiple craft options and major breweries like Heineken and Corona introducing non-alcoholic options of their core beers that are nearly indistinguishable from the original. Athletic Brewing, a craft brewery devoted only to non-alcoholic beer, has grown into one of the largest independent craft breweries in the US. Others have exploded onto the scene, with national distribution in under a year or two. Many of these “breweries” however, don’t have a physical facility or taproom, and many of them share common addresses for production.
What is interesting though, is that many of these who are contracted out are some of the best entrants into the industry as a whole. Contracting can mean different methods, however most are usually alcohol-removal; vacuum distillation/separation or membrane filtration. Even multiple major breweries are not produced in their own breweries but in contract breweries who have large-scale dealcoholization equipment and experience. The breweries own experiences with recipes allows this to happen and the contract brewers’ experience with the removal process, pasteurization, and packaging safety reduce risk.
Contract brewing, by some, might be seen as an easy way without truly creating a craft beverage. Sure, for purists, this view can hold. At this point, however, the NA sector is in its infancy and the cost of equipment is seen as a major barrier of entry to a sector that needs to grow. While there are methods to produce NA beer that don’t require specialized equipment, they still can require a lot of time to perfect recipes and a whole set of brewing equipment. So contract brewing can open doors to more quality brands in the sector before the smaller, niche, craft brewers start to produce their own NA beers (even larger ones who are not yet doing it, cough, cough New Belgium Brewing..)
Seeing is believing and good quality contract brews, alongside fast-growing NA breweries who brew without creating alcohol (Athletic, GO Brewing, and others), can help smaller breweries come around to producing their own. This is especially true if they have access to low cost de-alcoholization like what is provided through ABV Technology’s* hub-spoke model, or if they are aware of and able to create NA brews on their existing equipment without extra equipment.[1]
People might look down on contract brewing as a whole, thinking it is an easy way to stick a label on a mass-produced craft beer. However, for non-alcoholic beer it will likely continue to play an important role in the industry visibility and growth, including enabling the start and scale of many new craft entrants to the sector. Contract brewing is an essential part to a rapidly growing industry that will enable more creativity and smaller craft brewing later in my opinion.
Added Point – Recently Japanese Giant, Asahi, aquired Octopi Brewing. Octopi is the largest contract brewer in the Midwest and responsible for brewing a growing number of NA brands who have national reach. They also have their own brand, Untitled Art, whose NA beer line is considered one of the better in the industry by many. According to articles, they plan to produce multiple Asahi products there, while continuing to produce their lineup of contract brews. Let’s hope this continues for the sake of those brands.
Links about the purchase by Asahi
*A different, and interesting, contract type model is the hub-spoke model employed by breweries using ABV Technology’s Equalizer machine. This is a vacuum separation machine where it produces equal parts non-alcoholic beer and alcoholic base for hard seltzer. This allows breweries to produce two products from one. While the machines are lower cost compared to some, not every brewery can afford or has the space to host one. What they’ve done is a hub-spoke model where larger breweries host machines and provide outsourcing services to other breweries. Captain Lawrence in New York, Two Brothers in Chicago, Eastern Market Brewing in Michigan, and ABV’s own setup in Minneapolis are just a few areas where machines are located. As little as one barrel of beer can be sent for dealcoholizing, allowing the piloting of smaller quantities.
[1] Food safety is an issue. pH to control risks for botulism in NA beer is important. Pasteurization is also important when distributing widely, which can be seen as a barrier to entry. This is potentially mitigated by partnering with a contract brewer who has pasteurization services.