BREWERS ASSOCIATION: CRAFT BREWING VOLUME HOPS 13 PERCENT

Total U.S. brewery count tops 2,000

Boulder, CO • March 26, 2012 —TheBrewers Association (BA), the trade association representing small and independent brewers, today released 2011 data on U.S. craft brewing¹. Craft brewers saw volume² rise 13 percent, with a 15 percent increase in retail sales from 2010 to 2011, representing a total barrel increase of 1.3 million.

In 2011, craft brewers represented 5.68 percent of volume of the U.S. beer market, up from 4.97 in 2010, with production reaching 11,468,152 barrels. Additionally, the BA estimates the actual dollar sales figure from craft brewers in 2011 was $8.7 billion, up from $7.6 billion in 2010. Increased retails sales represented 9.1 percent of the $95.5 billion dollar U.S. beer market³.

“While the overall beer market experienced a 1.32 percent volume decrease in 2011, craft brewing saw significant growth, surpassing five percent total market volume share for the first time,” said Paul Gatza, director, Brewers Association. “It’s becoming increasingly clear that with the variety of styles and flavors to choose from, Americans are developing a strong taste for high-quality, small-batch beer from independent brewers.”

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With 250 brewery openings and only 37 closings, the BA also reported that 1,989 breweries were operating in the U.S. in 2011—an 11 percent increase from the previous year. Small brewers employed approximately 103,585 workers in the U.S in 2011.

“We saw rapid growth in brewery openings last year, particularly with microbrewery start-ups, and these numbers are poised to rise even more in 2012,” added Gatza. “In February 2012, we already topped 2,000 operating breweries—a truly remarkable milestone. We look forward to even more success and the continued expansion of the craft beer market.”

Note: Numbers are preliminary. The Association will publish its full 2011 industry analysis in the May/June 2012 issue of The New Brewer, highlighting regional trends and sales by individual breweries. Additionally, a more extensive analysis will be released during the Craft Brewers Conference in San Diego, Calif., from May 2-5.

¹ The definition of a craft brewer as stated by the Brewers Association: An American craft brewer is small, independent, and traditional. Small: Annual production of beer less than 6 million barrels. Beer production is attributed to a brewer according to the rules of alternating proprietorships. Flavored malt beverages are not considered beer for purposes of this definition. Independent: Less than 25 percent of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member who is not themselves a craft brewer. Traditional: A brewer who has either an all malt flagship (the beer which represents the greatest volume among that brewers brands) or has at least 50 percent of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor.

² Volume by craft brewers represent total taxable production.

³The Brewers Association does not include flavored malt beverages in its beer data set.

Contact:

Abby Berman (on behalf of the Brewers Association)
abby@rosengrouppr.com
646.695.7044

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About the Brewers Association:

The Brewers Association is the not-for-profit trade association dedicated to small and independent American brewers, their craft beers and the community of brewing enthusiasts. The Brewers Association (BA) represents more than 70 percent of the brewing industry, and its members make more than 99 percent of the beer brewed in the U.S. The BA organizes events including the World Beer Cup®, Great American Beer Festival®, Craft Brewers Conference and BrewExpo America®, SAVOR℠: An American Craft Beer & Food Experienceand American Craft Beer Week. The BA publishes The New Brewer magazine and its Brewers Publications division is the largest publisher of contemporary and relevant brewing literature for today's craft brewers and homebrewers. Beer lovers are invited to learn more about the dynamic world of craft beer atCraftBeer.com and about homebrewing via the BA's American Homebrewers Association. Follow us on Twitter.

Why Craft Beer?

Nice little snipet on why craft beer from the Brewer's Association.

Can there be too many breweries?

Today we find ourselves in a brewing boom in the United States. The Bohemian has only been around for about 10 years (founded in and opened our doors in 2001) and we still feel like a new coming to this industry among others like Sierra Nevada who have hit 30 this past year. Now, we're not owned by deep pockets or some midwest corporation so our growth has been steady but humble all done with our own capital. No investors or outside partners. Just a mom & pop shop. Literally. The popularity of consumers switching from macro beers to craft beers is refreshing. But with this turn in popularity you start seeing dollar signs in peoples eyes. We find our selves in a funny situation asking the question; "Can there be too many breweries?"

Don't get us wrong. Competition is always good for business. And the more craft the merrier is what we like to say. As long as someone is drinking quality over quantity we're on the right track. Right? Today I read a press release by the Brewer's Association (below) and found an alarming number of breweries being planned for production. What does this mean? Is this sustainable? Is this the beer equivalent of the yogurt craze in the 90's and now the similar craze with frozen yogurt and berries? Will be be doomed to the same fate as wine? Is it a fad? Will big beer die? Will craft come out on top?

Realistically there are only so many beer drinkers out there. You can get new drinkers simply with the coming of age. With craft it's more like growing up and enjoying a beer rather than getting plowed off of beer. You also loose them due to age, diet and other personal reasons. Craft has been converting people to purchase a quality 6 pack over a cheap 12 pack. Drinking beer instead of wine with a meal. But what happens if you have too many choices (gulp - did I really say that?).

For the off premiss side of things think of it this way. I always equate craft beer to dairy or specifically milk. Sure beer won't go bad as fast as milk but it does have a limited shelf life and limited shelf space. If you go to a c-store you see maybe 7 or 10 brands of milk (in urban areas) including Soy. But typically you see 4 at the most. Now milk is something a lot of people drink. Babies all the way to the Elderly. The age window for a beer drinker is arguable much smaller. They also drink a lot more and more often. But yet you don't see 155 types of milk at the store. What happens with you get too many beer options? Sure, the bad beer will get weeded out eventually but after causing how much damage? But what happens to the large craft players do they feel the pinch as the macro breweries do right now? What about the small regional craft breweries? What about all breweries? Does everyone simply throw away half of their product because it expires on the shelf due to too many options and product not moving?

The future looks to hold a lot of beer. Hopefully good, no - great beer. Until then we watch the growth with optimism and caution.

BA release below:

BREWERS ASSOCIATION REPORTS 2011 MID-YEAR GROWTH FOR U.S. CRAFT BREWERS

Dollar growth up 15% in first six months of 2011; U.S. sees rapid growth in breweries in planning

Boulder, CO • August 8, 2011 - The Brewers Association, the trade association representing the majority of U.S. brewing companies, has released strong mid-year numbers for America's small and independent craft brewers¹. Dollar sales were up 15 percent in the first half of 2011, excluding brewers who left the craft segment in 2010². Volume of craft brewed beer sold grew 14 percent for the first six months in 2011, compared to 9 percent growth in the first half of 2010.

Barrels sold by craft brewers for the first half of the year are an estimated 5.1 million barrels. Despite many challenges, the mid-year numbers show signs of continued growth for craft breweries. The industry currently provides an estimated 100,000 jobs, contributing significantly to the U.S. economy.

"Craft brewers continue to innovate and brew beers of excellent quality," noted Paul Gatza, director of the Brewers Association. "America's beer drinkers are rapidly switching to craft because of the variety of flavors they are discovering. And they are connecting with small and independent craft brewers as companies they choose to support."

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The U.S. now boasts 1,790 breweries—an increase of 165 additional breweries since June 2010. The Brewers Association also tracks breweries in planning as an indicator of potential new entrants into the craft category, and lists 725 breweries in planning today compared to 389 a year ago. Additionally, the count of craft brewers was at 1,740 as of June 30, 2011.

"There is a growing interest in establishing new breweries," Gatza added. "It seems like every day we are hearing about a brewery in planning. Will they all make it? No, but many will if they produce high-quality, interesting craft beers and can get them to market through self-distribution and beer wholesalers and beer retailers."

¹ The definition of a craft brewer as stated by the Brewers Association: An American craft brewer is small, independent, and traditional. Small: Annual production of beer less than 6 million barrels. Beer production is attributed to a brewer according to the rules of alternating proprietorships. Flavored malt beverages are not considered beer for purposes of this definition. Independent: Less than 25% of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member who is not themselves a craft brewer. Traditional: A brewer who has either an all malt flagship (the beer which represents the greatest volume among that brewers brands) or has at least 50% of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor.

² Three former craft brewing companies left the segment in the second half of 2010 when transitions led them to no longer meet the Brewers Association's definition of independence.

Contact

Paul Gatza, Director
paul@brewersassociation.org, 303.447.0816 x122

Julia Herz, Craft Beer Program Director
julia@brewersassociation.org, 303.447.0816 x113

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The Brewers Association is the not-for-profit trade association dedicated to small and independent American brewers, their craft beers and the community of brewing enthusiasts. The Brewers Association (BA) represents more than 70 percent of the brewing industry, and its members make more than 99 percent of the beer brewed in the U.S. The BA organizes events including the World Beer Cup®, Great American Beer Festival®, Craft Brewers Conference and BrewExpo America®, SAVOR: An American Craft Beer & Food Experience and American Craft Beer Week. The BA publishes The New Brewermagazine and its Brewers Publications division is the largest publisher of contemporary and relevant brewing literature for today's craft brewers and homebrewers.

Beer lovers are invited to learn more about the dynamic world of craft beer at CraftBeer.com and about homebrewing via the BA's American Homebrewers Association. Follow us on Twitter.

11 Percent Volume Growth For U.S. Craft Brewers In 2010

Brewers Association Reports 11 Percent Volume Growth For U.S. Craft Brewers In 2010

Total U.S. brewery count climbs to its highest level since 1900

Boulder, CO • March 21, 2011—The Brewers Association, the trade association representing the majority of U.S. brewing companies, today released 2010 data on the U.S. craft brewing industry. Small and independent craft brewers saw volume increase 11 percent and retail sales dollars increase 12 percent over 2009, representing a growth of over 1 million barrels (31 gallons per U.S. barrel), equal to more than 14 million new craft cases.

New Year's Resolutions from BA

Ten New Year's Resolutions for Beer Lovers

By Meghan Storey

We all know our usual New Year's resolutions aren't always particularly exciting. They normally involve things like losing weight, or breaking a bad habit. While those types of resolutions are important, this list is much more fun. Expand your love and knowlege of craft beer in the new year. Add one of these resolutions (they're in no particular order) to your list and get ready for 2011!

10. Introduce someone to craft beer.

9. Try at least one new beer a month.

8. Participate in an American Craft Beer Week event. (May 16 - 22, 2011)

7. Host or attend a beer tasting. We even have a video to help you!

6. Cook with craft beer! We're adding new recipes to CraftBeer.com all the time. Don't forget to add your favorite recipes to the recipe section—it might be featured on the home page!

5. Give craft beer or brewery gear as a present.

4. Learn more about your favorite beverage; read a book on beer or brewing. Find tons of resources at the Brewers Association Beer Enthusiast Store.

3. Experience a beer festival.

2. Plan a side-trip to a brewery on your next vacation.

1. Bring craft beer to a housewarming or dinner party.

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Meghan Storey, the Brewers Association's Web Editor, has been lucky enough to work in the world of craft beer for the past three years. She holds a degree in Print Journalism from the University of Mississippi, and has recently relocated to Nashville, TN. She loves to introduce friends to new craft beers and food pairings. Since beginning work on CraftBeer.com she can be found adding beer to just about everything she cooks.