macro v. micro

[Dr J]

I need to settle a good natured debate. In terms of production quantity, what is the difference between a macro brew and a micro brew?

[chazwicke]

Years ago (In the 80s) a Micro was any brewery that brewed under 12,000 bbls annually. When many smaller breweries eclipsed that quantity the term used was Craft Brewery. I do not know if there is an official cut off between any of these levels now be it Micro, Craft, Regional, or Macro.

[oakgrovebrew]

I don't know if there are certain "production levels" that classify a brewery but genenrally a micro would only produce enough beer to supply a small area (like a town or city)

[Richard English]

In the UK there is a legal difference between small and large breweries (we don't use the term macro and micro here). Smaller breweries are given certain tax concessions.

Being a government enactment it is obviously complex but essentially breweries producing 5,000 hectolitres (3,055 barrels) or less of beer annually may qualify for a reduced rate of half the main duty rate.

Those producing between 5,000 and 30,000 hectolitres (18,330 barrels) a year may qualify for a reduced rate of beer duty calculated according to their level of production.

This is a very welcome concession but, having been introduced only in the past couple of years, its effect has yet to be fully assessed.

[beer editor]

The Association of Brewers defines a microbrewery as a brewery that produces less than 15,000 barrels (17,600 HL) a year. A regional brewery is one that produces between 15,000 and 2,000,000 barrels. Larger than that is a macro.

But I think most of us would define the difference between micro and macro on other grounds. We are generally talking about all malt beers, but more under Belgian rules than German. Generally, we are talking about breweries that do not use high gravity brewing (which allows them to make more with their kettles, then introduce water later.

On the tax front, brewers that produce less than 2,000,000 barrels per year get a tax break on the first 60,000 they make.

Prosit,
Stan

[Richard English]

There is clearly a significant difference between that which the USA regards as small and that which the UK regards as small!

[SilkTork]

The Brakspear brewery claimed that the tax concessions were one of the reasons they decided to stop brewing. They felt they fell between two stools - too big to get the tax concessions, but too small to cope with the discounts demanded by the big pub chains such as Wetherspoons.

[Richard English]

Quote, "...too small to cope with the discounts demanded by the big pub chains such as Wetherspoons..."

I had heard that it was the discounts demanded by the supermarkets (for the sale fo their bottled beers) that was a contributory factor.

I can't claim to know about Wetherspoon's discount policy but I can say that, contrary to popular belief, JDW is far from being the largest Pubco in the UK. It's also noticeable that JDW takes the products of breweries far smaller than was Brakespear, breweries the same size as was Brakespear and breweries much larger than was Brakespear.

My own feeling is that the cost accountants realised they could earn far more money by selling a piece of prime real estate in the middle of one of the most expensive towns in England than they could even make from brewing.

Exactly the same thing happened to the, enormously popular, cinema in Henley. Although loved by all and a mecca for cinema organ enthusiasts its owner sold it to a supermarket chain for far more money than he could ever have made from the cinema had he lived to be 120!

Unfortunately it seems that almost everyone has his price - let's face it, if any one of you small brewers who post here were to be offered £100,000,000 by Anheuser Busch to sell your company and never to brew again - how long would you hesitate?