Economist says iPhones may challenge craft beer industry

A chief economist with a craft brewing association says local brewers don't need to worry about competition from the recreational cannabis market, but the rise of smart phones may threaten the industry. 

Bart Watson, of the United States-based Brewers Association, told 1310 NEWS' The Rick Gibbons Show that as people spend more time socializing through their iPhones, they may go to community gathering spaces like pubs and breweries less. Watson said smart phones are changing the way people socialize and therefore competing directly with the ultimate social lubricant — beer.  

“The iPhone both as a tool to order things as well as something that changes how people interact socially certainly poses one of the many challenges that any entertainment industry is going to face going forward,” said Watson. 

Watson said there are many similar trends in the craft beer market in Canada and the United States as the two countries have a comparable number of breweries per capita. 

In the states that have legalized recreational marijuana, Watson said cannabis has not had a negative impact on the beer industry. If anything, he said states that have legalized recreational marijuana have seen better beer trends than those that have not. 

The real threat for craft beer is the iPhone, he said. 

As smart phone usage increases, Watson said breweries will need to adapt to figure out how their products fit in with the changes that are going on in society. He said the craft beer industry will also need to find new ways to get potential customers to engage with their products.

Watson said many beer companies are getting smarter about how they use digital marketing. 

“So I don't think it's all negative, but it's big challenge because we're seeing a whole generation is interacting socially very different,” he said. “With pubs and breweries as community gathering spaces, are going to lose traffic unless they update what they're offering.”

Listen to the full interview: