Commentary: Trouble brewing for craft beer market as Singapore’s Archipelago bows out

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Brewing,Food & Drinks

The shutdown of Singapore brewery Archipelago reflects economic struggles in the industry and difficulties appealing to the choosy craft beer customer, says Christian Barker.

Composite photo of Archipelago Brewery in Tuas and a bottle of its Singapore Blond Ale SINGAPORE: Local craft beer brewery Archipelago has fallen victim to what some commentators are calling the “beerpocalypse”. It was announced in June that the brand, owned by Asia Pacific Breweries Singapore, willEstablished in 1933, Archipelago is Singapore’s second-oldest brewery, originally situated near Alexandra Brickworks.

Rising interest rates are also impacting brewers who have borrowed to fund their business or acquire property, while cost-of-living pressures are decreasing demand. With diminished discretionary spending, people are simply going to the bar less, and may find mainstream beer at S$15 per six-pack more appealing than niche ales costing S$15 per pint or more.

“People think, why should I drink that craft beer, when they are plenty of perfectly viable, independent craft beer alternatives the market has to offer?” In this country, we drink less than our regional neighbours. By APB’s estimates, annual per capita consumption of beer in Singapore is around 24L, compared to an average of 50L in Cambodia or Thailand, and 60L in Vietnam.

However, in recent years, more of Archipelago’s brews seem designed to look European or Australian . Even the Singapore Blonde Ale,This is ironic given the success Tiger has had in the international market by leaning into its Singaporean origins. Learning from its big brother in this regard could have been an area where Archipelago benefitted, rather than suffered, from its corporate associations.

 

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