Expansion
and Consolidation
In 1950, the top 5 brewing companies (by barrel
output) had only 24% of the market share. That number increased
to 32% in 1960, 49% in 1970, 75% in 1980 and a staggering 91% in
1990. Likewise, their annual barrel output was on the rise: 20.6
million barrels in 1950, 28.6 million in 1960, 60 million in
1970, 131 million in 1980 and 201 million in 1990. How did it
happen? Expansion and consolidation.
In 1934, the brewers returned to brewing. The
large regional breweries still dominated their markets, but
Anheuser-Busch and the big Milwaukee brands began gaining ground
in the South and West. The war effort surrounding World War II
had a great impact on the brewing industry. Advancements in
technology also had an effect on the brewing industry as beer
was brewed on a scale and to a precision previously unachieved.
Beer was also canned for the first time, and new interstate
highways and railroads criss-crossed the country making it quick
and easy to ship beer almost anywhere. However, instead of
shipping the beer to distant markets, the megabreweries decided
to either build satellite breweries in the regional markets
themselves or simply consolidating the local regional breweries
into their national brewing conglomerates. By 1980, fewer than
50 breweries existed in America.
A bleak time in American brewing history, just
about the only thing available on tap or in a bottle was a pale
lager with very little flavor or character of any kind. In an
effort to make brewing less expensive, the megabreweries were
now brewing with cheap adjuncts such as corn and rice. Many
beer-drinkers, dissatisfied with the state of affairs at their
local bar, embarked on yet another revolution that would forever
alter the face of the brewing industry.
