Craft Beer, The Story of Craft Beer That Its Name Couldn't Tell

Craft beer. If you look up 'craft' in the dictionary, the first meaning is 'craftsmanship' and the second is 'skill, technique'.
However, the third meaning includes the verb meaning of 'to make handicrafts with one's hands'.

The third meaning likely had a significant influence on the background of craft beer being translated as 'suje-maekju' in Korea.

However, the meaning of "craft" in craft beer does not mean "made by hand." Its original meaning is closer to beer made to stand against the uniform beers of large corporations, embodying the brewer's personal philosophy and individuality.

Therefore, some people are dissatisfied with the translation 'handmade beer,' arguing that it distorts the original meaning.

‘If you look only at the words 'handmade,' or 'beer made by hand,' the actual claims that craft beer makes independence나 Creativity This is because only the marketing significance of the word "handmade" is shown, instead of the same core values.

Of course, choosing the already familiar word 'handmade' instead of the foreign term 'craft beer,' which is unfamiliar to the public, seems like a reasonable choice at first glance.

However, the real problem was that instead of choosing an easy and familiar word, what was contained within the word 'craft' Independence, experimental spirit, resistance to big-company beer It lies in the fact that the entire method of conveying the same meaning has been lost.

‘The image that comes to mind for someone encountering the four characters 'suje-yeoju' for the first time is, nine times out of ten, 'beer made directly by someone's hands.' In my opinion, this issue did not end with a simple disappointment in translation.

As will be discussed later, when the quality of products declined as the Korean craft beer market fell into the "four cans for 10,000 won" competition at convenience stores, the fact that consumers could not find an answer to the question, "So what is the difference between craft beer and regular beer?" ultimately stems from this point.

‘Because the word 'handmade' failed to convey the unique genre identity of craft beer, and as even the quality wavered, the reason for consumers to continue being curious about this beer disappeared.

The Brewing Association of America (BA) presents official criteria of 'small-scale, independent, and traditional,' but this definition alone is insufficient to capture the complex real-world cases.

I intend to discuss the complex meanings and history behind the term "craft beer," as well as why "handmade beer" has failed to properly resonate with consumers in the Korean market. In this article, I will share my thoughts on everything from the definition of craft beer to the changes in the Korean craft beer market.

What is craft beer?

in korea craft beerleading to Craft beerIt is a beer that is difficult to define in a single word. It is ambiguous whether the standard is what is contained in the glass or who brewed it.

There are official standards in the United States. The Brewers Association announced the definition of a craft brewer in 2007, and its core consisted of three points.

However, this definition is not perfect either.Joshua Bernstein, the author of *The Complete Beer Course*, went a step further and evaluated craft beer as follows. “It is virtually meaningless. It is a modifier just as useless as ‘artisanal’ or ‘handcrafted.’”

There is a reason why Bernstein went so far as to say this. This is because if you apply BA's three criteria to reality, you quickly encounter contradictions.

A representative example is Ballast Pointall. It is a brewery that started in the back room of a homebrew shop in San Diego and became an icon of the American craft beer scene with Sculpin IPA.

In 2015, Constellation Brands, a giant beverage company that owns Corona and Modelo, acquired this brewery for $1 billion. At that moment, according to the definition of BA, Ballast Point was no longer a 'craft brewer'.

However, the brewery Even after the acquisition, the same brewing team was making the same beer with the same recipe. Colby Chandler, a brewer who has worked at Ballast Point for over 20 years, said, “The same people are making the same beer. The only thing that has changed is that the facilities and equipment have improved.”.

The beer in the glass remains the same, but the beer that was craft until yesterday is no longer craft starting today simply because the ownership structure on paper has changed.

Goose IslandThe same goes for it. It is a brewery that started as a small brewpub in Chicago in 1988 and established itself as a pioneer of the American craft beer revolution. It also lost its craft status according to BA standards when it was acquired by AB InBev, the world's largest beer company, in 2011.

However, Goose Island's bourbon Bourbon County Stout is considered one of the most respected barrel-aged beers in the world, even after the acquisition. They brew over 50 styles, operate a dedicated barrel aging warehouse, and introduce experimental beers every year.

In terms of brewing philosophy and quality alone, it is more faithful to the spirit of craft than any independent brewery, but due to its ownership structure, it is effectively not considered craft.

Ultimately, these examples demonstrate one thing: the fundamental question of whether it is truly right to judge whether a beer is craft based on factors other than what is in the glass.

nevertheless Craft beerThere is a reason why the word is still valid. In the end This is because the word originated from an emphasis on quality. ‘The word 'craft' evokes 'handcraft,' serving to draw attention to quality rather than simply the small scale of the brewery.

Ultimately, craft beer refers to beer that originates from the brewer's own passion and philosophy, rather than the marketing department of a large corporation.

What is the difference between craft beer and regular beer?

Craft beer and big-brand beer differ fundamentally in their brewing methods.

First, craft brewers High Gravity BrewingWe do not use high-gravity brewing. High-gravity brewing is a mass production method in which beer is brewed to a high alcohol content and then mixed with water just before packaging to increase its volume.

For example, if you add 501 TP3T of water to beer made with an alcohol content of 7.51 TP3T, it becomes 51 TP3T beer, and this saves one-third of the brewing space.

Second, Purpose of using adjunctsThis is different. Large beer companies use auxiliary ingredients like corn or rice to lighten the body of the beer and lower production costs.

The cheapest beers in the United States contain up to 501 TP3T of admixtures, the maximum allowed by law. On the other hand, when craft brewers use admixtures, it is for the purpose of producing a specific flavor—that is, it reflects the brewer's intention.

division	Big company beer	Craft beer
Brewing Philosophy	Cost reduction, mass production efficiency	The brewer's individuality and creative recipes
High Gravity Brewing	universally used	Not in use
Use of auxiliary ingredients	Purpose of cost reduction and body weight reduction	Intentional use, such as flavor creation
Beer style	Focus on a minority flavor profile	Pursuing diverse styles and flavors
independence	Affiliate or affiliate of a global company	Principle of independent operation (external stake less than 251 TP 3 T)

Differences in brewing philosophy and manufacturing methods ultimately mean that the taste differs when poured into a glass. If mass-market beers are products with their flavors smoothed out to be palatable to everyone, craft beer is a beer that retains the unique character intended by the brewer.

There are surprisingly diverse styles of beer.

From American Pale Ale with a splendid burst of citrus and pine aromas, to the even more bitter and intense IPA, to Stout with chocolate and coffee notes rising from roasted malt, to Weizen, a German wheat beer characterized by the fragrance of banana and clove, and even the golden Pilsner born in Pilsen, Czech Republic.

If you look at the beer style chart, dozens of styles occupy distinct categories based solely on the combination of bitterness intensity and alcohol content.

Large corporate beers remain at just one point within this broad spectrum: the American Adjunct Lager, a pale lager style made by adding auxiliary ingredients like corn or rice to create a light body.

Cass, Hite, Budweiser, and Heineken are all essentially variations of this single style, despite their detailed differences. Craft beer explores this entire spectrum.

Although they share the same name, 'beer,' a can of Cass and a glass of Imperial Stout aged in bourbon barrels are, in fact, closer to completely different beverages. Demonstrating that difference firsthand is the reason craft beer exists.

“The misunderstanding caused by the translation ”craft beer”

In Korea, craft beer is commonly '‘craft beer’It is called [name]. If you translate the Chinese characters literally, it means 'handmade beer'.

This is where the misunderstanding begins. In the Korean language, the word 'suje' strongly carries the nuance of "something made directly by human hands rather than by a machine.".

So, when many people hear the term "craft beer," they think, "Ah, beer made directly at the shop?" or "Is it made by hand without using machines?".

However, the meaning of the English word 'craft' is much broader than 'handmade'. The etymology of 'craft' was a word meaning 'force' in Old English, but over time it came to mean "skill, art, dexterity, and a profession requiring special skills.".

In modern English, "craft" refers to work that requires skilled techniques, and "craftsman" is translated as "artisan.".

in other words, Craft beerThe original meaning of the term is not "handmade beer," but rather closer to "beer containing the skill and philosophy of an artisan." To this, the meanings of "experimental spirit, innovation, and a challenge to the existing order" are added. The essence of craft brewing is being a leader, not a follower.

In fact, the craft beer movement in the United States began as a kind of cultural rebellion against the homogenization of big-company beers.

Nevertheless, there is no choice but to write “craft beer”

Despite the clear limitations of translation, it is difficult to replace the term 'handmade beer' in Korea. Using 'craft beer' as is still unfamiliar to the general consumer, while 'artisan beer' sounds too grandiose. Expressions like 'independent beer' or 'small-scale beer' also fail to fully capture the spirit of craft.

In the domestic market, craft beer is already commonly understood as “products made by small and medium-sized breweries, excluding the three major conglomerates and imported beers.” While not perfect, both consumers and the industry generally accept this definition.

The Birth of Craft Beer — The Beer Revolution That Began in the United States

To understand why craft beer emerged, you must first understand how the major beer markets, including the United States, converged into a single style.

As recently as the 19th century, the United States possessed a diverse lager culture brought by German immigrants. However, following the implementation of Prohibition in 1920, the number of breweries dropped from approximately 2,000 to 750, and the surviving breweries endured decades of war and the Great Depression. Price competitionEntered into corporate integration.

To lower costs, the proportion of auxiliary ingredients like corn and rice gradually increased, and large brewing companies converted all the beers from the small breweries they acquired into the same pale lager. By the late 1970s, fewer than 50 breweries remained in the United States, and almost all of them were optimized for cost reduction with the same taste. American Advent Lagerwas producing.

The first rebellion against this standardization took place in 1965. Anchor Brewingacquired Fritz MaytagThis was the case, and the legalization of homebrewing in 1978 ignited the passion of hobby brewers.

They revived styles such as ale, stout, and IPA that large corporations had abandoned, proving through beer their declaration to “make it differently.” This marked the beginning of the craft beer movement.

The History and Trajectory of Korean Craft Beer

The history of Korean beer began in 1876 when Sapporo Beer first set foot on Korean soil as Japanese goods were imported duty-free through the Treaty of Ganghwa.

Later, in 1933, Dai Nippon Beer established Chosun Beer Co., Ltd. in Yeongdeungpo, and in the same year, Kirin Beer also established Showa Kirin Beer. These two companies are the predecessors of the current Hite Beer and OB Beer.

Even after liberation, the Korean beer market was dominated by a duopoly of OB and Hite for decades. Consumer choices were extremely limited, and most beers were lagers with similar flavors.

in korea craft beerIt first appeared in 2002. Ahead of the Korea-Japan World Cup, the government eased various regulations, and a small-scale beer manufacturing license was introduced into the Liquor Tax Act. At the time, it was called 'house beer,' and it was a form where only the place where it was brewed could sell the beer directly.

Curiosity about the new beer was explosive and spread from Seoul to the provinces, resulting in the establishment of 115 small breweries in 2005.

This period is commonly referred to as the "first generation of craft beer," during which most brewers produced German-style beer. Golden Pilsner, aromatic Weizen, and dark Dunkel—the three types known as "Pilbadung"—were the mainstream.

However, the initial enthusiasm quickly cooled. The number of breweries dropped to 58 by 2013. The biggest reason was regulations that made external distribution impossible. Since beer could only be sold at the place of production, there were limitations to the profit structure, and a shortage of professional brewers led to a decline in the consistency of beer quality.

Change came in 2014. With the revision of the Liquor Tax Act, external distribution by small-scale breweries was permitted. From this point on, the 'second generation of craft beer' emerged.

Brewers who had honed their skills abroad and returned, or breweries directly operated by foreigners, also emerged. Going beyond 'Philbadung,' they began introducing various styles to Korea, such as American Pale Ale, IPA, and Belgian beer.

The Revision of the Liquor Tax Act and the Era of Convenience Store Craft Beer

The biggest turning point in the history of Korean craft beer was 2020. In this year, the basis for imposing excise tax on beer became price-based Ad valorem taxBased on shipment volume Specific taxIt changed to.

Under the existing ad valorem tax system, small-scale breweries were at a disadvantage. This was because mass production was difficult, resulting in high manufacturing costs, and taxes were applied high in proportion to those costs.

On the other hand, imported beer had a relative advantage as taxes were levied based on the lower price at the time of customs clearance. This was the structural reason why the so-called '4 cans for 10,000 won' promotion was only possible with imported beer.

With the switch to a volume-based tax system, domestic craft beer also gained price competitiveness. Investors expected the craft beer market to become a gold mine, and small breweries expanded their production facilities. Promotions offering four cans of craft beer for 10,000 won also began at convenience stores.

The COVID-19 pandemic added fuel to the fire. As pubs and restaurants closed due to business restrictions, the entertainment market contracted, while the home consumption market centered on convenience stores and supermarkets exploded.

As the culture of drinking at home and drinking alone has taken root, craft beer, which fills the refrigerated sections of convenience stores, has been a hot topic day after day. According to the Korea Craft Beer Association, the size of the craft beer market, which was 9.3 billion won in 2013, grew to 152 billion won in 2021.

In particular, 'Gompyo Wheat Beer,' launched in 2020 by Sevenbroi in partnership with convenience store chain CU and Daehan Flour Mills, became a phenomenal hit. Following this, toothpaste, shoe polish, and various food brands rushed to collaborate with beer.

The craft beer market, which was worth only 16 billion won in 2014, grew explosively, reaching approximately 200 billion won in 2021. However, cracks were already forming behind this growth.

Why Did Korean Craft Beer Decline After COVID-19?

[Image insertion location: Inside an empty craft beer pub]

As of 2024, the reality of the Korean craft beer market is harsh. The Korean beer market is estimated to be worth approximately 3.2 trillion won in sales in 2024. Of this, convenience store craft beer accounts for about 55 billion won, while the remaining small-scale importers and craft beers amount to only about 65 billion won.

OB Beer and Hite Jinro still hold 701 TP3T of the market.

Jeju Beer, the first in the industry to be listed on the KOSPI, changed its name to 'Hanul & Jeju' and added semiconductor manufacturing and waste treatment to its business portfolio. This effectively amounts to abandoning the beer business.

Sevenbroi, which once dreamed of listing on the KOSPI with its Gompyo Wheat Beer, saw its revenue drop from 32 billion won in 2022 to 8.4 billion won in 2024. With an operating loss of 9 billion won and a net loss of 17 billion won, the very existence of the company is at risk.

OB Beer eventually withdrew its craft beer collaboration brand 'Korea Brewers Collective (KBC),' launched in 2021, and Lotte Chilsung also ceased operations of its dedicated craft beer factory. Convenience stores are also no longer releasing new craft beer products.

Why did it collapse so quickly? Of course, there are external factors. Rising raw material costs due to the Russia-Ukraine war, the shift in alcohol trends toward whiskey and highball, and the overall economic downturn and reduced consumption. However, these macroeconomic factors alone cannot explain the rapid decline of craft beer.

A market that failed to live up to the reputation of craft beer

The most fundamental problem is, The difference between the name "craft beer" and regular beer has not been clearly imprinted in consumers' minds.The point is that.

As convenience stores have become the central distribution channel, a ceiling on supply prices has been set to align with the pricing policy of "4 cans for 11,000 to 12,000 won." Meeting this price makes it difficult to produce high-quality, distinctive beers.

As a result, instead of beers that could showcase the unique characteristics of the brewery, only collaboration beers that could meet the supply price ended up flooding the market.

This clashes head-on with the spirit of craft beer. As we have seen, the essence of craft beer is the brewer's recipe and philosophy—the very spirit that emphasizes that ideas should come from the brewer, not the marketing department.

However, the reality of craft beer in Korean convenience stores was the exact opposite. Package design and brand collaborations were more important than the taste and aroma of the beer, and supply conditions from convenience stores took precedence over the brewer's philosophy.

Among small breweries, controversy arose over whether the convenience store "four cans for 10,000 won" collaboration beer was truly craft beer. Ultimately, from the consumer's perspective, craft beer and regular beer were simply canned beers that could be purchased at similar prices at convenience stores.

‘Although it bears the label 'handmade,' it was difficult to perceive the special experience or difference in quality guaranteed by that name. When Gompyo Wheat Beer and Cass were placed side by side on convenience store shelves, the difference between the two for consumers was merely the packaging design, not a difference in brewing philosophy.

This phenomenon has actually already been experienced in the United States. When the craft beer boom took off, large corporations in the U.S. disguised themselves as small breweries—the so-called ‘Stealth beers’It is said that [something] appeared.

They were packaged to look like microbreweries, but in reality, they were products made by large corporations or beers from companies established purely for business purposes to jump on the bandwagon. These stealth beers eroded consumer trust and ultimately contributed to the loss of meaning in the term 'microbrewing' itself.

A surprisingly similar phenomenon occurred in the era of craft beer in Korean convenience stores. Collaboration beers featuring only characters, produced via OEM contract manufacturing without a craft beer license or in-house brewing facilities, filled convenience store refrigerators.

From a consumer's perspective, there was no way to distinguish whether beers like Gompyo or Malpyo were craft beers, mass-produced brands, or merely marketing products. It was the moment when the label "handmade" ceased to be a guarantee of quality and was reduced to a marketing label on convenience store shelves.

The landscape of the craft beer industry is currently chaotic. Brewing companies that were once valued at hundreds of billions while pursuing IPOs have entered rehabilitation proceedings, and even first-generation breweries over 20 years old are downsizing their beer businesses and launching highball brands.

Since the conversion cost from craft beer production facilities to highball production facilities is low, everyone is jumping into the RTD highball market. If beer doesn't work, it's highball; if highball doesn't work, it's makgeolli. The desperate struggle to keep up with trends continues.

However, perhaps this is an inevitable process. The dropout of those who jumped into the craft beer market based solely on business potential is the bursting of the bubble, not the end of the industry.

The United States also underwent severe restructuring following the craft beer boom of the 1990s, during which hundreds of breweries closed down, but the breweries that survived became the foundation of American craft beer today.

Korean craft beer may also be going through the midst of growing pains right now. Breweries that are sincere about the beer itself rather than following trends, and those that can tell their own story in a glass rather than focusing on convenience store prices, will be the ones to weather this winter.

And only then might the term "craft beer" come to have its proper meaning in Korea as well.