Economics of beer

Beer is shaped by political and economic forces. Historically, what has been a typical beer varies across societies. At its basic level, beer is fermented grain. But on a practical level, how a beer is made is subject to many variables. While some styles of beers depend on technology like modern light lagers depends on carefully controlled malting and powerful chilling, other styles were developed or influenced from tax laws or government policies.

For example, the Belgian Wit beer was created partly from how its production was taxed. Taxes were calculated from the amount of malted grain so thrifty brewers used some un-malted grain to save money.

Many countries tax beer by alcohol level. Germany has tax brackets that define beer. Einfachbiers (translated "simple beers") have an alcohol level of about 1%. Similarly, schankbiers have an alcohol level of 0.5 - 2.6%. Very few beers fall into this category. Many more beers are vollbiers (translated "full beers") with between 3 and 5.3% alcohol. Finally, starkbiers (translated "strong beers") have alcohol level over 5%.

A common myth is that IPAs (Indian Pale Ales) were made hoppier and more alcoholic to survive a long sea voyage. That explanation is unlikely to be the reason. Instead, IPAs were likely based on a style of beers, called October beers, that were brewed for aging. Other styles of beer, some much lighter, were also exported to India. What seems to be the reason that IPAs became established was that England taxed exported beers differently than domestic beers. Beers were taxed by their quantity of grain, except if the beer was exported. At the beginning all beers were of similar strength but exported beers remained at that level while domestic beers gradually weakened as taxes rose.