I have an enduring fascination with the intricate economics of the American craft brewing industry. This isn’t a well-kept secret, as regular readers of this column would know. In fact, it’s a subject that I consider to be of significant importance. While beer is undoubtedly a delightful beverage, it’s also a commercial product that represents the culmination of an extensive web of coordinated economic activities, ranging from agricultural logistics to light manufacturing, and much more. Essentially, beer is a tangible outcome of labor. For each freshly poured pint or that ice-cold stovepipe that eventually meets your lips, an intricate choreography involving workers spanning the country, managing the supply chain, and fitting within the brewery’s organizational structure is performed. Trust me, you don’t need to be an ardent advocate of market fundamentalism, à la Leonard Read’s famed “I, Pencil” essay, to appreciate the fruits of this collective effort.
Nonetheless, it’s equally imperative to focus not just on the broader industry’s marvels and the cultural contributions of the modern beer scene, but also on the underlying labor that enables all of this to transpire. Even within the craft brewing industry, which has historically positioned itself as a more progressive alternative to the cutthroat corporate macrobreweries, this remains a demanding task. But it’s one that we must undertake. There’s no guarantee that individual independent breweries are compensating their workforce fairly, nor can we assume that there are enough mechanisms in place to ensure that the “magic of the market” will compel lower-paying enterprises to enhance wages and benefits in order to stay competitive.
For markets, in this instance, the labor market within American brewing, to operate as the Milton Friedmans of the world advocate, it is imperative that prices accurately reflect the comprehensive and precise information regarding the goods and services being exchanged. This is precisely why I believe that anyone who has the capacity should closely scrutinize the Brewers Association’s recently released 2023 salary and benefits benchmarking reports.
In these reports, the spotlight falls on the labor aspects of the craft beer industry, shedding light on the pivotal issue of workers’ compensation and benefits. It’s a call for transparency and a crucial step towards ensuring that the economic forces within the craft brewing sector align with the principles of fairness and equitable treatment for all who contribute to the creation of this beloved beverage.
