Tuesday, March 10, 2009

Beer, Consumer Choice and Free Society: The American Model


A striking quote for Beer- "Beer is proof that God loves us and wants us to be happy"-Benjamin Franklin

Video from Reason TV,



Quoted from Reason TV

``In 1920, the National Prohibition Act destroyed the beer industry in the United States, putting some 1,500 breweries out of business. When the "noble experiment" was repealed in 1933, beer lovers rejoiced, and the beer industry staggered back to its feet. The industry had lost much of its diversity, however, and the emergence of national brands in the 1950s and 1960s led to industry consolidation and fewer choices for American beer drinkers. By 1980, there were less than 50 breweries in the U.S.

``By the 1980s, American beer had an international reputation as weak and watery as a case of Hamm's. Most breweries only produced American-style lagers, a light and inexpensive style of beer typically made with rice or corn adjuncts in addition to barley, hops, yeast and water.

``What American beer lovers didn’t know at the time was that a revolution was imminent. In 1979, a clerical error in the 21st Amendment was corrected, and for the first time in nearly 50 years it became legal to brew small batches of beer at home. Home brewers who had little interest in cutting costs or making beer with mass appeal began brewing big, flavorful beers in a wide range of styles. Many of these home brewers decided to turn their passion into small businesses, and microbreweries began popping up all over the country.

``Today, although mainstream beers still dominate the market, more than 14,00 breweries in the U.S. produce more styles of beer than anywhere else in the world, and American beers routinely dominate international beer competitions.

``So the next time you’re at your favorite brewpub, hold your glass up high and celebrate the American beer revolution."

Lesson: Industry liberalization promotes competition, which provides consumers with the best choices at the most reasonable prices, and societal satisfaction.

Unfortunately for the Philippines, the microbrewery industry is still at an infancy...I only know of two.

Hat Tip Mark Perry

No comments:

Post a Comment