Does Chile have craft beer?

Chile has over 400 microbreweries and the ‘parent’ yeast of lager beer was found in Patagonia. Chile is famous for its wine, yet the craft beer scene has been exploding since 2008.

When most people think of Latin American beer, a clear, bland, and multinational brew comes to mind. For years that has been a stereotype, and a correct one at that. In 2020 is that stereotype still holding water? The answer depends on where in Chile.

patagonian craft beers

Cerveza Bundor in Valdivia, Chile — Cerveza **Bundor** in Valdivia, Chile

An influx of German immigrants moved to Chile in the 19th century as part of a state-sponsored initiative to colonize southern Chile. Many of the beers today have a strong German influence, particularly those of Patagonia.

The Chilean Lake District (northern Patagonia) has over 40 microbreweries, including Kunstmann, which is the most famous.

In October of 2014, the local Union of breweries of Los Rios Region (UCR) was formed. This led to two partnerships with universities in Bavaria (Germany) that focus on the development of raw materials, specifically water for beer, cultivation of hops, and the development of regional yeast.

Beer from this region now carries a seal of origin and is known as ‘Cerveza Valdiviana.' This ensures you're getting a beer that was not only made in the Chilean Patagonia, but also from locally sourced ingredients.

The southern portion of Chile is known as a beer-culture, with the city of Valdivia commonly called the beer capital of Chile. More than 20 microcervecerias operate in Valdivia, including 3 breweries of award-winning beer. El Growler, Cerveza Bundor, and Cuello Negro combined for 9 of the 41 Chilean beers that medaled at the 2019 World Beer Awards.

Don’t know where or what “The Patagonia” is? If yes then great, if not check out this post from us.

Oldest lager in the world?

Araucaria araucana in center of the picture. Our Why Pedal Chile page has interesting info that is only found in Chile. Like the full description of this tree.

A 2017 NBC news release reported that Archaeologist Dr. Alberto Perez excavated ceramic pottery remains that contained “traces of a yeast called Saccharomyces eubayanus — known as the ‘lost parent’ of lager beer.” The article also noted, “that might mean they were doing so using the yeast S. eubayanus to make alcohol more than 200 years before lager production began in Bavaria in the 1400s.” This ceramic artifact was located in the very northern section of “La Patagonia” on the Chile/Argentina border.

The study also reported “they have been commonly associated with Nothofagus, as well as Araucaria araucana,” both of these trees are native only in the southern section of South America. An article from Popular Science says “The Patagonian species is what gives lager yeast its interesting cold-tolerant and sulfite-metabolizing characteristics--characteristics that manifest in the distinctive flavor and character of lager beer.” This region of the world is home to over 2500 plant species that are endemic and cold weathered. The Mapuche, the indigenous people of the region also happens to drink a type of beer called chicha or corn beer. The Chileans generally call it chicha morada (morado = purple), since the corn is purple. Could this Chicha actually be the very first lager on the planet?

Interesting fact: Ale yeast is about 5000 years older than lager yeast.

beer at the southern tip

In 1896 a German brewmaster opened a brewery in the remote town of Punta Arenas and gave it the name of Patagona. This brewery is the southernmost brewery in the world and is closer to Antarctica than the capital city of Santiago. In 1961 the brewery was sold, and renamed to Austral

Cervecería Austral is in the same location today as it was in 1896, which is right on the edge of the frigid Strait of Magellan and is the oldest continuously operated brewery in the country. The water source for all the beers of southern Patagonia is melted glacier water. Since water is the main ingredient in beer it has a huge impact on the overall flavor. The Austral Calafate is a hugely popular beer and uses the berries from the Magellan barberry, which is only found in the Southern Cone. The Calafate berry tastes like a flavor-enhanced blueberry.

Interesting note: Technically Austral Brewery is not the southernmost microbrewery since some small brewpubs in both Argentina and Chile are further south. However, it is a self-appointed title that has power due to the heritage and prestige of the Pataonga brand.

Best Beer in Latin America

The northern Patagonia of both Chile and Argentina has the best beer culture in all of Latin America. This region has a combined 80+ microbreweries with 100% locally sourced ingredients. This region was primarily settled by German immigrants, who brought their brewmaster skills with them. This region offers the perfect climate for the cultivation of all the ingredients, including the ‘parent’ yeast. Even hops grow here.

not much craft in the capital

Santiago is the capital city of Chile with a southern latitude equivalent to Los Angeles. The largest city in Chile sits at close to 2000 feet above sea level and is surrounded by numerous mountain ranges, including the Andes. Santiago has 50 times more people than Valdivia, yet has fewer total microbreweries. Three breweries medaled at the 2019 World Beer Awards, Kross, Quimera, and Jester for a total of 7 awards.

Santiago is a classic Latin America megacity that still drinks the traditional lager style beers. The city is seeing greater demand for better beers, but compared to the rest of Chile, the beer culture is decades behind.

Seaport City of Valparaíso

In 2003, Valpo’s Historic Quarter was declared a UNESCO World Heritage site because “the colonial city of Valparaíso presents an excellent example of late 19th-century urban and architectural development in Latin America.” Valparaiso has over a dozen microbreweries just in the historic district alone.

In 2011 Copa Cervezas de América was started and is now the most important beer contest in Latin America. This week-long international event is great for sharing brewing knowledge and encourages the craft beer culture in Latin American. Daniel Trivelli, President of Copa Cervezas de América says “Sales of craft beer in Latin America are growing at between 20% and 40% a year, depending on which country ” and “here in Chile, sales are growing at 25%.”

Interesting info: It’s incorrectly believed that Andrew Blest established Chile’s first-ever brewery in 1825 in Valparaiso. La Chimba in Santiago was serving beer in 1822 and is referenced in numerous journals and periodicals of the time.

One of my favorite spots to drink a beer in Valdivia.

What about IPa

Most countries in Latin America have a hard time growing hops with climates that are generally too hot for growing. As a result, most brewers have to import hops from the US or Germany.

Things in Central and South America tend to be slower, and fresh produce can sit on the docks for weeks, which deteriorates the quality of the produce, and the final product. IPAs are not common, and on the rare chance that you happen to find one, after a couple of sips, you will wish you hadn’t. However, things are quite a bit different in Patagonia. This region offers an ideal climate to grow hops, and beers brewed in this region are able to use locally grown and fresh ones. Finding a great IPA in Valdivia, Osorno, Puerto Montt, or Bariloche is quite easy, with the most challenging decision being which one to select.

The microbrewery El Growler in Valdivia offers a handful of IPAs with hops grown right on the property. At the 2019 Word Beer Awards, El Growler took home 4 medals, 3 of which were for IPAs. The only other Chilean breweries to medal with IPAs were Cerveza Bundor*, and Cerveceria Coiron both also located in Patagonia. Is that a coincidence? I think not.

*Bundor is actually located on the street right behind El Growler in Valdivia. Both are on my top five list of best breweries in Chile.

Barriers to great beer

The general consensus amongst cicerones (beer experts) is that most of South & Central America is 20 years behind the artisanal beer scene of the United States, with specific countries even further behind. However, the making of a craft beer culture is more than just about the product. This brings us to the question of will the craft beer scene ever catch up?

This post focuses on Chile, and in certain regions within Chile, namely Valdivia, and Patagonia the answer is the beer quality(beer culture) is fairly similar. For the rest of Latin America minus a few exceptions in Brazil and Argentina’s Patagonia the answer is maybe never.

Let look at a 2 barriers that have to be overcome in-order to bridge the gap to better beer.

Cold chain system - Many parts of the world don’t have refrigerated trucks or temperate controlled warehouses. Beer is perishable and if not stored and transported properly the quality suffers. Getting a good quality beer at the brewery only to find that same beer tastes awful from the liquor store happens all over South America. Chile has one of the better cold chain systems specific to Latin America but not compared to the U.S. or Europe.
Taxes - Chile doesn’t have any special taxes on craft beer or products with a higher volume of alcohol. However, many countries do, and overcoming this barrier generally comes in the form of passing the costs off to the consumer. If craft beer becomes a status symbol, as it has in certain countries, the ability to ever create a true beer culture is impossible.

final thought

The Lakes District of Chile has the best beer in Latin America (along with Argentinian Lake District). This region is abundant with natural beer resources, such as abundant sources of clean fresh-water, hops, and barley. This region was settled primarily by Europeans who brought their beer culture with them and it has allowed to flourish over the last 170 years in the perfect beer environment.

Jesse - Director of Pedal Chile. Jesse lives in the Patagonia and is an avid snowboarder, mountain biker, and reader of mostly non-fiction. Jesse has a Master of Science in Health and Human Performance and enjoys all forms of outdoor recreation. My favorite beer? Belgian style.