On the website of Amaracord, a craft brewery in the Italian town of Appechio, there is a graphic that proclaims, “Italians Do It Better“. They are, of course, referring to Italian craft beer. Whether Italian craft beer is better than that produced by craft brewers in other countries is, of course, a topic of debate. What I can say is that having visited Italy half-a-dozen times since 2013, the country does produce some excellent craft beer.

My most recent trip to Italy was just last month. I was there to visit the Gran Sasso Science Institute (GSSI) in L’Aquila where I made a presentation on craft beer at a workshop for PhD students and early career researchers. Part of my presentation addressed the issue of how craft breweries and craft beer are defined. Prior to my visit, I did quite a bit of research into the Italian craft beer industry, and discovered some interesting differences between how craft breweries and craft beer are defined in the United States and Italy respectively.

In the United States the generally accepted definition of a craft brewery is that provided by the Brewers Association (BA), a trade group representing the interests of craft brewers. According to the BA, to qualify as a craft, a brewery must meet three conditions:

• It must be small. Annual production cannot exceed 6 million barrels (7 million hectoliters).
• It must be independently owned. No more than 25 percent of the brewery can be owned or controlled (or equivalent economic interest) by a beverage alcohol industry member that is not itself a craft brewer.
• It must brew beer and have a license to do so from The Alcohol and Tobacco Tax and Trade Bureau (TTB).

This is the definition that is used by most academic researchers, including myself. Its widespread acceptance and usage are also reflective of the fact that there is no legal definition of a craft brewery in the United States.

One of the shortfalls of the BA definition, in my opinion, is that while it defines a craft beer producer (i.e., a brewery), it does not define craft beer. The closest that the BA gets to defining craft beer is that it is “generally made with traditional ingredients like malted barley; interesting and sometimes non-traditional ingredients are often added for distinctiveness“. This leads me to ponder the question – can a large multinational corporation like AB InBev produce craft beer? In the absence of a definition of craft beer, this is a difficult question to answer. It is, as I will show later, an important question.

As I was to discover from my research, the question of defining a craft brewery and craft beer has been addressed by the Italian government. In 2016, Italy’s lawmakers passed legislation that defined a craft brewery as follows:

• It must be small. Annual production cannot exceed 200,000 hectoliters (169,000 barrels).
• It must be legally and economically independent.
• It must be intellectually independent. A brewery cannot operate under license to use the intellectual property rights of others.
• It must be physically separate from other breweries. Each brewery must have its own distinct production space.

In addition to the above, the 2016 legislation defined two key characteristics of the product, craft beer. To qualify as craft, beer must be both unpasteurized and non-micro-filtered.

For several reasons, the Italian definition of craft brewery and craft beer is superior to what we have in the United States, First, it is a legal definition. Second, it defines the required characteristics of both the brewery and the beer.

While some may not be particularly interested in how craft brewery and craft beer are defined, or whether they are defined at all, I would suggest that having legal definitions of these two concepts is important.

In 2020, Byron Jackson and Mario Mena Jr. filed a class action lawsuit against the brewing giant AB InBev. At the center of the lawsuit was Veza Sur Brewing Co., which is located in Miami, FL. In patronizing the Veza Sur Brewing Co., and drinking their beer, Jackson and Mena Jr. believed that they were drinking craft beer brewed by a craft brewery. Upon discovering that Veza Sur was owned by AB In Bev, they filed a class action lawsuit. As the plaintiffs’ complaint stated:

“Defendants make and sell beer under the name Veza Sur. Veza Sur pretends to be a craft beer made in Miami and with Latin roots. In reality, it is simply another one of the dozens of brands made by the largest brewer in the world, Anheuser-Busch. It has no authentic Latin roots, and is not even made in Miami. Defendants’ misrepresentations have deceived the Plaintiffs who thought they were purchasing a craft beer that was made in Miami by a small brewery”.

For purposes of full disclosure, I was retained by the legal firm (Twig, Trade, & Tribunal) representing the plaintiffs as an expert witness in this case. In August 2021, the lawsuit was dismissed by U.S. district court judge in Miami, FL. In other words, it never went to trial.

In dismissing the case, Judge Beth Bloom stated that the “Brewer’s Association’s definition of craft beer is but one definition of a term that is otherwise widely used and well known in day-to-day conversation. However, what a certain individual might determine to qualify as “craft” beer is necessarily a subjective one, depending on the individual’s tastes and interests.”

Judge Bloom’s statement was recognition of the fact that there is no legal definition of what constitutes either a craft brewery or craft beer. Of course, the definitional issue was only one aspect of this lawsuit. And so, even if there was a legal definition of craft brewery and/or craft beer in the United States, this would not have guaranteed a successful outcome for the plaintiffs. Indeed, if you read Judge Bloom’s opinion, it is unlikely that a legal definition of craft brewery and/or craft beer would have resulted in a positive outcome for the plaintiffs.

While a legal definition of craft brewery and/or craft beer may not have helped the plaintiffs in their case against AB InBev, it did get me thinking about the issue of having a legal definition of either or both of these. If a legal definition did exist, as it does in Italy, it would certainly un-muddy what are currently some very muddy waters. For example, is Shock Top, a Belgian Wheat beer brewed by Anheuser Busch, a craft beer? Can a multinational corporation produce craft beer? Is Space Dust IPA, brewed by Elysian Brewing Company a craft beer? Is Elysian a craft brewery. Elysian Brewing Company was established in 1995 in Seattle, WA by Dave Buhler, Joe Bisacca, and Dick Cantwell. In 2015, AB InBev purchased Elysian Brewing Company, with the result that the latter lost its status as a craft brewery with the Brewers Association. All the above questions, in the absence of a legal definition, are difficult to answer.

While I was at Rome Airport, waiting to board my bus to L’Aquila, I decided to have a beer. I opted for a beer called Birra ichnusa. From its label, it looks like a craft beer. It is also unfiltered. Brewed on the Italian island of Sardinia, Birra Inchusa has been around since 1912. Despite its appearance (on at least three criteria), it does not meet the Italian government’s definition of a craft beer. First, since 1986, the brewery has been owned by Heineken. Second, the brewery produces over 400,000 hectoliters of beer annually (making it too large to qualify as craft). Third, the beer is pasteurized.

Whether we will ever have a legal definition of craft brewery and craft beer in the United States, I have no idea. If we did it would certainly bring clarity to a very unclear situation.