In the cosy corners of Australia’s bustling bottle shops, a controversy is brewing that’s leaving a bitter taste in the mouths of beer aficionados and independent brewers alike.
This tactic has caused confusion among consumers and sparked a heated debate about the ethics of marketing and the survival of local businesses.
The issue at hand? A practice known as ‘craft-washing,’ where large corporations cunningly disguise their mass-produced beers as quaint, artisanal offerings to lure in unsuspecting customers.
Jonny Bucknall, the founder of Freshwater Brewing Co. on Sydney’s Northern Beaches, has raised the alarm over this growing trend in Australia’s major liquor stores.
He’s observed a proliferation of beers adorned with vibrant colours and retro designs that give the impression of being locally owned when, in fact, they are nothing more than supermarket beers in indie clothing.
Bucknall expressed his concern that craft-washing contributes to several local businesses’ demise.
In the year leading up to February 2024, a staggering 20 independent breweries across Australia have shut their doors, a phenomenon Forbes has directly linked to the deceptive marketing practice.
The craft-washing strategy is simple yet effective.
Supermarket-owned brands like Coles Group’s Tinnies and Endeavour Group’s Zytho Brewing are given prime shelf space and visibility. At the same time, independent craft beers are pushed aside, making them harder for customers to find.
These private-label brands are often priced more competitively, appealing to budget-conscious shoppers, particularly during times of economic strain.
Bucknall points out that distribution is a critical factor in the beer industry, and few true independent breweries enjoy the luxury of nationwide stocking.
In contrast, supermarket brands benefit from automatic national distribution, which inadvertently builds consumer trust through familiarity. This gives faux craft beers a significant edge over their genuinely independent counterparts.
‘People are now consolidating their purchases, and they’re going direct to the bigger retailers, and then, surprise, surprise, bigger retailers’ brands are cheaper,’ Bucknall said.
The craft-washing phenomenon isn’t limited to supermarket brands. Many beloved craft labels, such as Stone & Wood, Little Creatures, and Balter, have been acquired by global giants like Lion and Asahi. This raises questions about the true meaning of ‘independent’ in today’s beer market.
Despite the challenges, Bucknall remains hopeful that there’s a growing global shift towards local and direct purchasing.
He encourages consumers to support local breweries, where they can find a diverse range of styles, fresher and better quality beer, and experience the passion that goes into brewing each batch.
Freshwater Brewing is taking matters into its own hands by launching an equity crowdfund, allowing everyday Australians to invest in the beer they love.
The funds raised will go towards opening a new bar, installing a canning line, and bolstering their community-first approach.
In response to the craft-washing controversy, Coles Liquor has stated that it is simplifying its beer range as part of a major rebrand and that it stocks a significant number of independent craft brews.
The company has also added the Independent Brewers Association seal to relevant products online to aid customer identification.
Endeavour Group has reported a significant growth in its craft beer range and maintains that its own Pinnacle Drinks products, which make up a small portion of the total craft beer range, are clearly labeled as such.
As consumers, we have the power to influence the market with our purchasing decisions. By choosing to support local breweries and demanding transparency from retailers, we can help ensure that the true artisans of the beer world receive the recognition and success they deserve.
So, the next time you find yourself navigating the colourful aisles of your local bottle shop, take a moment to read the labels and consider where your beer is really coming from.
Your choice could make all the difference to a small business striving to brew something genuinely world-class.
What are your thoughts on craft-washing? Have you encountered any disguised supermarket beers masquerading as craft brews? Share your experiences and join the conversation in the comments below.
Also read: Brisbane brewery wins big at Royal Queensland Beer Awards with stunning brew
