Specialty Food Magazine

SPRING 2015

Specialty Food Magazine is the leading publication for retailers, manufacturers and foodservice professionals in the specialty food trade. It provides news, trends and business-building insights that help readers keep their businesses competitive.

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"We're seeing products that imitate or mimic craft but aren't," says Jensen of the spirits industry. For such products that appear to be artisanally made but in fact come from large-scale producers, the craft is in the marketing—not the bottle. "You have to be careful when you brand beverages as craft," warns retailer Mulvihill, noting that customers are vigilant with research. "If it's not craft, don't call it craft." Trends Fueling Sales "The drivers of growth are probably similar for both craft beer and craft spirits," says Fahey. The development of the American palate has led to the rise of the farm-to-table food movement. "People are much more interested in flavors and the provenance of what they are eating and drinking," notes the master cicerone (the organization's top tier of certification), "and that plays well with craft beer and spirits." More than 700 craft distilleries were in operation in 2014, according to the Distilled Spirits Council, up from just 92 in 2010. President Peter Cressy cited the growth of small distillers as responsible for generating interest in the spirits category. The U.S. Treasury's Alcohol and Tobacco Tax and Trade Bureau estimates that amount will climb beyond 1,000 by the end of this year. Craft beer's ascent is driven by demand for fuller f lavors and for local products, says Bart Watson, Ph.D., chief economist for the Brewers Association. The demand trends are similar for craft distilling, he adds, but that industry is a few years behind craft beer. The number of craft breweries has exploded over the past few decades, now at 3,200-plus operations. Craft beer volume is burgeoning as well, up 11 percent last year, enjoying five consecutive years of double-digit growth, the Brewers Association reports. In contrast, during that same time period, domestic pre- mium beer sales and volume have been trend- ing f lat to down. The Brewers Association's goal is for craft to capture 20 percent of the total beer market by 2020. "I don't think people will say, 'I liked these interesting and favorful beers, but I really want to go back to drinking Budweiser exclusively.'" 24 ❘ SPECIALTY FOOD MAGAZINE specialtyfood.com

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