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Brewers Association

2008 Stewardship Report

Brewers Associat ion 2008 Stewardship Report2 www.beertown.org

One of the Brewers Association’s goals is to be a transparent organization. This stewardship report serves as a summary of Brewers Association board, committee, staff and member activities related to the Brewers Association in the calendar year 2008. The Brewers Association is a 501(c)(6) not-for-profi t trade association.

OUR PURPOSETo promote and protect small and independent American brew-ers, their craft beers and the community of brewing enthusiasts.

OUR MISSIONBy 2013, America’s craft brewers will have more than fi ve per-cent market share, will be recognized as making the best beer in the world, will be able to obtain the ingredients and materials needed and will be politically infl uential enough to secure fair legislative and regulatory treatment for craft brewers.

As American Craft Brewers, our commitment to quality, vitality and diversity will continue to invigorate our country’s impressive brewing culture. Consumers will understand and support craft beer from true craft brewers. Our efforts will not only aid existing craft brewers, but also those who would come after, ensuring the continuing contribution of new ideas and individuals committed to a living and active beer culture.

OUR CORE VALUES AND BELIEFSAt the Brewers Association we believe in:

Promoting and celebrating the small, independent and • traditional culture of American craft brewers. Vigorously defending our industry.• Supporting and encouraging the responsible enjoyment • of beer.Providing stewardship for 10,000 years of brewing history.• Educating brewers and consumers about the diversity, • fl avor and quality of beer.Improving the economic health of American craft brewers.• Working to build a community of brewers and brewing • enthusiasts to provide them with a unifi ed voice.Promoting ethical and legal trade practices.• Building relationships and collaborating with our industry • partners.Fostering transparency within our own organization.•

Governance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3Brewers Association (Professional Membership & Membership Education) . . . . . . . . . . . . . . . . . . . . . 4-8Government Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-9Craft Beer Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10Great American Beer FestivalSM . . . . . . . . . . . . . . . . . . .11Savor: An American Craft Beer & Food Experience . . .11Allied Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12Brewers Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . .12American Homebrewers Association® . . . . . . . . . . . 13-14Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15Upcoming Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16

TABLE OF CONTENTS

Charlie PapazianPresident

Tom ClarkFinance Director

Tim SloanInformation Technology

Director

Ryan FarrellAccounting Clerk

Robert PeaseVice President

Kristi SwitzerBrewers Publications

Director

Gary GlassAmerican Homebrewers

Association DirectorKathyn Porter

AHA Membership Coordinator

Janis GrossAHA Project Coordinator

Jill ReddingZymurgy Editor

Mark SnyderSpecial Projects Coordinator

Katie BrownMembership Services Lead

George MylerWarehouse Shipping Manager

Chris WilliamsMembership Services

Paul GatzaBrewers Association

Director

Erin GlassBA Membership Coordinator

Pete JohnsonPrograms Manager

Jill ReddingThe New Brewer Editor

Andy SparhawkCraft Beer Program

Coordinator

Julia HerzCraft Beer Program

Director

Nancy JohnsonEvents Director

Chris SwerseyCompetition Manager

Bradley LathamEvents Coordinator

Robin PanzerEvents Registrar

GABF Contract Staff

Julie KorowotnySenior Designer/

Web Designer

Allison SeymourMagazine Art Director

Kerry FannonGraphic Designer

Stephanie JohnsonGraphics/Production

Director

Cindy JonesSales & Marketing

DirectorMeghan Storey

Marketing Coordinator

Chris PryorBusiness Development

Manager for Advertising & Sponsorship

Stephanie HuttonAdvertising & Sponsorship

Coordinator

Lindsay HustedWeb Architect

OUR STAFF

Cover Photo ©2009 Jupiter Images

Brewers Associat ion 2008 Stewardship Report 3www.beertown.org

GOVERNANCE

Board of Directors ElectionsEligible brewery members of the Brewers Association elected two packaging brewery board members, two pub brew-• ery members and appointed one (of two) at-large positions in December 2008. AHA governing committee members selected one of their membership-elected representatives in 2008. Approxi-• mately one-third of board seats are up for election each year.

John Bryant, Odell Brewing Company (CO)• Sam Calagione, Dogfi sh Head Brewery (DE)• Dick Cantwell, Elysian Brewing Company (WA)• Vinnie Cilurzo, Russian River Brewing Company (CA)• Richard Doyle, Harpoon Brewery (MA)• Mark Edelson, Iron Hill Brewery & Restaurant (DE) • Gary Fish, Deschutes Brewery (OR)• Chris Graham, Beer, Beer & More Beer (CA), AHA • Representative

Ken Grossman, Sierra Nevada (CA)• Kim Jordan, New Belgium Brewing Company (CO)• Greg Koch, Stone Brewing Co. (CA)• Jim Koch, Boston Beer Co. (MA)• Nick Matt, Matt Brewing Company (NY)• Randy Mosher, Randy Mosher Design (IL), AHA • RepresentativeZac Triemert, Upstream Brewing Company (NE), • Lucky Bucket Brewing Company (NE)

Brewers Association Board of Directors / February 2008 - February 2009

Government Affairs Committee

Nick Matt• , FX Matt Brewing Co. (NY), ChairJohn Bryant• , Odell Brewing Company (CO)John Carlson• , Colorado Brewers Guild (CO)Rich Doyle• , Harpoon Brewery (MA)Gary Fish• , Deschutes Brewery (OR)Tim Herzog• , Flying Bison Brewing Co. (NY)Steve Hindy• , Brooklyn Brewery (NY)Kim Jordan• , New Belgium Brewing Company (CO)Martin Kelly• , Magic Hat Brewing Company (VT)Greg Koch• , Stone Brewing Co. (CA)Jim Koch• , Boston Beer Co. (MA) Tom McCormick• , California Small Brewers Assn. (CA)Gene Muller• , Flying Fish Brewing Co. (NJ)Staff Liaisons: • Paul Gatza, Pete Johnson, Charlie Papazian, Bob Pease

American Homebrewers Association Governing Committee

Chris P. Frey• , ChairDavid Logsdon• , Vice ChairSusan Ruud• , SecretaryDrew Beechum• Denny Conn• Chris Graham• Harold Gulbransen• David Houseman• Bob Kauffman• Randy Mosher• Jeff Renner• Curt Stock•

Gordon Strong• Roxanne Westendorf• Jamil Zainasheff• Staff Liaisons: • Gary Glass, Janis Gross, Kathryn PorterMembers Emeritus: • Fred Eckhardt, Ray Daniels

Events CommitteeGreg Koch• , Stone Brewing Co. (CA), Chair Steve Bradt• , Free State Brewing Co. (KS), Vice ChairChris Black• , Falling Rock Taphouse (CO)Fred Bueltman• , New Holland Brewing Co. (MI)Sam Calagione• , Dogfi sh Head Craft Brewery (DE)Jeff Mendel• (CO)Eddie Miller• , Priority Brands Beverage, (CO)Garrett Oliver• , Brooklyn Brewery (NY)Staff Liaisons: • Nancy Johnson, Bradley Latham, Robin Panzer, Charlie Papazian, Bob Pease

Communications CommitteeDick Cantwell• , Elysian Brewing Company (WA), ChairFred Czuba• , Saxco Pacifi c Coast, LLC (CA)Gary Fish• , Deschutes Brewery (OR)Stan Hieronymus• , Beer Travelers & Labinsky Steve Hindy• , Brooklyn Brewery (NY)David Logsdon• , Wyeast Laboratories, Inc. (OR)Randy Mosher, Randy Mosher Design (IL)

Greg Noonan• , Vermont Pub and Brewery (VT)Susan Ruud• Staff Liaisons: • Paul Gatza, Gary Glass, Nancy Johnson, Cindy Jones, Charlie Papazian, Bob Pease, Jill Redding

Governance CommitteeKim Jordan• , New BelgiumBrewing Co. (CO), ChairSteve Bradt• , Free State Brewing Co., LLC (KS)Gary Fish• , Deschutes Brewery (OR)

Public Relations & Marketing Committee

Kim Jordan• , New Belgium Brewing Co. (CO), ChairVinnie Cilurzo• , Russian River Brewing Co. (CA)Tomme Arthur,• Port Brewing Co./Pizza Port (CA)Scott Barnum• , Pyramid Brewery (WA)John Bryant• , Odell Brewing Company (CO)Sam Calagione• , Dogfi sh Head Brewery (DE)Larry Chase• , Granite City Food & Brewery (IA)John Cochran• , Terrapin Beer Company (GA)Steve Hindy• , Brooklyn Brewery (NY)Jack Joyce• , Rogue Ales Brewers (OR)Brett Joyce• , Rogue Ales Brewers (OR)Chris Justema• , Cascade Lakes Brewing Company (OR)

Greg Koch• , Stone Brewing Co. (CA)Jim Koch, Boston Beer Co. (MA)Chris Lennert• , Left Hand Brewing Co. (CO)Liz Melby• , Harpoon Brewery (MA)Randy Mosher• , Randy Mosher Design (IL)Alan Newman• , Magic Hat Brewing Co. (VT)Greg Owsley• , New Belgium Brewing Co. (CO)Jeremy Ragonese• , Boulevard Brewing Co. (MO)Hugh Sisson• , Clipper City Brewing Co. (MD) Mark Stutrud• , Summit Brewing Co. (MN)Michelle Sullivan• , Boston Beer (MA)Mike Vitale• , Brooklyn Brewery (NY)Brock Wagner• , Saint Arnold Brewing Co. (TX)Eric Warner• , Flying Dog Brewery (CO)Staff Liaisons: • Paul Gatza, Julie Herz, Bob Pease, Charlie Papazian

Export Development Program Committee

Brett Joyce• , Rogue Ales (OR), ChairSam Calagione• , Dogfi sh Head Craft Brewery (DE)Mattson Davis• , Kona Brewery LLC (HI)Bruce Forsley• , Shipyard Brewing Co. (ME)Dan Gordon• , Gordon Biersch Brewing Co. (CA)Ken Grossman• , Sierra Nevada Brewing Co. (CA)Adam Lambert, Rogue Ales (OR)

Fred Mendes• , Boston Beer Co. (MA)Eric Rosenberg• , Bryant Christie, Inc., (WA) Eric Wallace• , Left Hand Brewing Co. (CO)Eric Warner• , Flying Dog Brewery (CO)Staff Liaisons: • Charlie Papazian, Bob Pease, Mark Snyder

Technical Committee Ken Grossman• , SierraNevada Brewing Co. (CA), ChairRob Gerrity• , Sierra Nevada Brewing Co. (CA)Kim Jordan• , New Belgium Brewing Co. (CO)Charles Kyle• , Sierra Nevada Brewing Co. (CA)John Mallett• , Bell’s Brewery, Inc. (MI)Matt Meadows• , New Belgium Brewing Co. (CO)John Pinkerton• , Moon River Brewing Co. (GA)Zac Triemert• , Lucky Bucket Brewing Co. (NE)Neil Witte• , Boulevard Brewing Co. (MO)Staff Liaisons: • Paul Gatza, Tim Sloan

Finance Committee Mark Edelson• , Iron Hill Brewery & Restaurant (DE), ChairSteve Bradt• , Free State Brewing Co. (KS)Brock Wagner• , Saint Arnold Brewing Co. (TX)John Bryant• , Odell Brewing Co. (CO)Staff Liaison: • Tom Clark


BREWERS ASSOCIATION(Professional Membership & Membership Education)

As of December 31, 2008, 48 of the 50 largest craft brewers were Brewers Association members.

Annual membership mailing included member window sticker, North American Brewery Update, Craft Brewing Fact Sheet and Craft Brewers Conference preliminary information.

Membership DevelopmentU.S. operating breweries that are members of the Brewers Association grew from 888 to 995 in 2008. The percentage of U.S. operating breweries that are part of the BA grew from 61% to 67%.

The New Brewer Produced six bi-monthly issues focused on technical brewing, government affairs, operational, marketing and management features. The communications committee developed a The New Brewer content and sponsorship subcommittee to discuss the long-term magazine direction.

2008 Advertising Revenue + 3% over 2007Circulation: 3,964 (11% increase from 2007)

Brewers Association Forum3,216 participants (3.3% increase from 2007)

Beer Industry StatisticsThis year, 1,089 breweries responded to the Beer Industry Production Survey. In 2008, the craft beer industry showed 5.8% growth on 8.6 million barrels to grow to 4.04% market share by volume.

American Craft Brewer: An American craft brewer is small, independent and traditional.

Small: Annual production of beer less than 2 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 defi nition.

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 fl agship (the beer that represents the greatest volume among that brewer’s brands) or has at least 50% of its volume in either all malt beers or in beers that use adjuncts to enhance rather than lighten fl avor.

Wholesalers - 103

Retailers - 124

Allied Trade Members - 242

Individual Members - 272

Brewery Members - 1,222

Bre

wer

s Ass

ociation Professional M

embership

1,963 Total Structure as of December 31, 2

008


Here are some concepts related to American craft brewers. Craft brewers are smaller brewers. Small brewers are defi ned as those who qualify for the Tax and Trade Bureau’s small • brewers excise tax differential by producing less than 2 million barrels annually.The hallmark of craft brewers is innovation. Craft brewers interpret historic styles with unique twists and develop • new styles that have no precedent. Craft brewers generally make beer with traditional ingredients like malted barley; interesting and sometimes non-traditional ingredients are often added for distinctiveness.Craft brewers tend to be very involved in their communities through philanthropy, product donations, volunteerism • and sponsorship of events. Craft brewers have distinctive, individualistic approaches to connecting with their customers. • Craft brewers maintain integrity by what they brew and their general independence, free from a substantial interest • by a non-craft brewer. The majority of Americans live within ten miles of a craft brewer.•

State Brewers AssociationsStaff communicated with, and provided support for, state brewers associations on a variety of state legislative activities. BA staff held state association leaders meetings at GABF and CBC and organized the “Keep It Local Across America” dedicated state guilds area at GABF.

Pete Johnson represented the BA and spoke at the Michigan Brewers Guild Winter Meeting in Detroit and the organizing meetings of the North Carolina Brewers Guild in Greensboro, NC and the Massachusetts Brewers Guild in Haverhill, MA.

There are 33 active state brewers associations/guilds in the U.S. BA supported state association legislative efforts in California, Maine, New York and Vermont, and assisted other state organizations on a variety of issues.

Power Hour Professional E-Conference SeriesThe Brewers Association presented hour-long educational seminars in 2008 for members, featuring guests: Dan Wandel (Information Resources, Inc.), Ian Ward (Brewers Supply Group) and Charlie Tull (Tax and Trade Bureau).

Topics covered in 2008 included: Year End 2007 Sales Recap• Malt – Understanding Today’s Challenges, Meeting Future Needs• IRI Mid-Year 2008 Sales Numbers• Federal Trade Practice Law and Regulations•

Craft Brewers Conference More than 2,000 attendees of the Craft Brewers Conference in San Diego in April networked and attended some of the 40 seminars and the keynote session featuring Richard Doyle of Harpoon Brewery.

The Brewers Association members meeting drew record attendance and featured board of director committee reports, member commentary and questions and answers.

Vinnie Cilurzo was awarded the Russell Schehrer Award for Innovation in Craft Brewing. Dr. Michael Lewis was presented with the Brewers Association Recognition Award. John Carlson was presented with the F.X. Matt Defense of the Small Brewing Industry Award.

Photos ©2009 Jason E. Kaplan


BREWERS ASSOCIATION(Professional Membership & Membership Education)

San-Diego-area members served as exceptional hosts, and even created a California Brewers Pavilion which housed over 100 local beers for attendees to try during the conference.

Draught Beer Quality ManualThe technical committee created a working group of craft, small, large and foreign brewers to develop a manual for draught beer line cleaning, system design and specifi cations, gas dispense, proper serving and glassware cleaning. Manual development continues into 2009, with launch in April 2009.

Export Development ProgramIn 2008 the Brewers Association received $387,000 from two USDA programs to promote the export of American Craft Beer:

$322,000 from the Market Access Program1. $65,000 from the Emerging Markets Program 2.

The Brewers Association’s Export Development Program (EDP) objectives have remained constant since the program’s inception in 2003. Objectives include:

Educating international trade and media about the quality and • diversity of products offered by the US craft beer industry and about the US craft beer culture.Informing member breweries about opportunities for their • products in key international target markets.Complementing industry’s own efforts to increase international distribution for US craft beer.•

In each of these areas, 2008 was a banner year for the EDP. The following are details related to our activities and success toward each objective.

Educating International TradeIn 2008, the BA participated in four international trade shows (FoodEx Japan, Great British Beer Festival, Salone del Gusto/Slow Food Italy, and Stockholm Beer and Whisky Festival Sweden) and three international seminars (Stockholm Beer and Whisky Festival Sweden, Craft Beer School China and Brau Germany Seminars). Through each of these events, the BA and its members’ products gained exposure to trade and media contacts and, in some cases, to local consumers. The BA’s educational tastings/seminars demonstrated the quality and diversity of American craft beer

Each of these activities is discussed in further detail below:Foodex Japan – • The BA participated in FoodEx Japan, which is Japan’s largest exhibition for food and beverage products with over 2,400 exhibitors and over 90,000 visitors. Twenty-six breweries submitted beer for the event, with a total of 72 brands displayed and poured. Stockholm Beer and Whisky Festival – • The BA coordinated the presence of 98 different beer brands from 20 EDP members at the Brewers Association/Oliver Twist Pub booth at the Stockholm Beer and Whisky Festival. The BA also conducted educational seminars using beer & food for the festival attendees. Salone Del Gusto – • Charlie Papazian and Nancy Johnson led a delegation of EDP members to the Salone del Gusto fair in Turin, Italy. Great British Beer Festival – • The EDP funded a US craft beer presence at the Great British Beer Festival (GBBF) Bières Sans Frontières (Beers Without Borders) stand.


US Embassy Opening Celebration – • EDP members helped to celebrate the opening of the new US Embassy in Berlin with American Craft Beer.Craft Beer School – China – • The BA hosted two educational seminars on American Craft Beer and American Craft Beer styles for Chinese importers, distributors, retailers, media and government offi cials in Shanghai and Beijing using members’ beers. The BA received excellent press coverage in Chinese publications.Brau Germany Seminars – partnership with Hop Growers of America – • Charlie Papazian attended the Brau Beviale conference and trade show in Nurnberg, Germany.

Informing Member BreweriesCraft Brewers Conference Speakers with LeAnne Rhee and Josh Weiner – • At the 2008 Craft Brewers Conference, the BA’s EDP offered presentations on Canada and China. Great American Beer Festival Seminar with Dan Ihrelius and Jim Araneta – • At the 2008 Great American Beer Festival, the BA’s EDP offered presentations on the Philippines and on Sweden.

Complementing Industry Export/Marketing EffortsInternational Beer Competitions – • In 2008, the BA participated in three international beer competitions (Stockholm Beer and Whisky Festival Sweden, European Beer Star Germany and the Australian International Beer Awards Australia). BA EDP members won numerous awards and will be honored with an awards ceremony at the Craft Brewers Conference in Boston on April 23, 2009.

Advertisements in Key Trade PublicationsLCBO • Food and Drink Magazine – advertisement in Holiday editionAlt om Whisky• magazine in Sweden

SuccessesUltimately, sales and distribution are the best measures to determine the success of the EDP. While the BA is just now completing its survey regarding annual exports, we already know that exports in 2008 increased considerably over 2007. As a result of EDP efforts, members achieved new or expanded distribution throughout Europe, Canada, Japan, China and the Philippines. We expect the same in 2009 despite the worsening global economy.

For more information on the Brewers Association Export Development Program, please contact Mark Snyder at [email protected]


GOVERNMENT AFFAIRS

LegislativeAmerican Craft Beer Week

The Brewers Association held an American Craft Beer Week reception for members • of Congress and staffers in the Agricultural Committee Room in the Longworth House Offi ce Building.

House Small Brewers CaucusThe Brewers Association worked with co-chairs Peter DeFazio (D-OR) and • Greg Walden (R-OR) on issues relating to excise taxes, Tax & Trade Bureau and homebrew shipping.House Small Brewers Caucus staff met with BA Board members and staff prior to the • American Craft Beer Week reception for an educational presentation and discussion of the raw ingredient challenges faced by small brewers.At the request of the Caucus, BA staff provided educational and industry news items • for posting on the Caucus web site.

Regulatory/Tax and Trade Bureau (TTB) TTB Notice of Proposed Rule Making (#73) on Alcohol Beverage Labeling and Advertising

Brewers Association submitted comments on the proposed rule, relying in large part • on member responses to a survey of potential economic impacts to small breweries.Comments focused on the preferred use of a linear depiction of serving facts rather • than a panel format as the least fi nancially impactful to small brewers.

“Strong Ale Warning” MeetingFollowing TTB warnings to member brewers for the use of the term on web sites, BA • staff met with TTB Assistant Administrator Bill Foster in an attempt to explain that in most cases the phrase actually imparts valuable information to consumers, helping them in making responsible choices.

TTB ExpoBA staff attended the fi rst ever regulator-industry event comprised of informational/educational seminars.•

Allergens Working GroupBA Director Paul Gatza represented the Brewers Association as part of an alcohol industry working group that convenes • regularly to discuss and formulate all-alcohol-industry policy (where there is common ground) and recommendations for TTB and FDA actions related to allergens.

Support Your Local BreweryThe Brewers Association launched the Support Your Local Brewery network in February 2007. Support Your Local Brewery is a communication network that informs beer enthusiasts about issues that impact small brewers, and organizes grassroots activity to defend the interests of small brewers. The network is designed for quick mobilization when issues arise. Partners such as BA brewery members, American Homebrewers Association members and Beer Advocate allow for extended reach beyond the direct email list of Support Your Local Brewery. The network grew to more than 29,000 direct contacts and almost 600,000 indirect contacts by the end of 2008.

2008 Support Your Local Brewery Issue AlertsAlabama• : Beer Activists contacted about efforts to raise the allowable ABV content in beer and legalize home brewing.


California• : The Support Your Local Brewery network was mobilized to contact legislators on a bill seeking to expand the limits on what a brewer can give away to a retailer, putting small brewers at a distinct disadvantage.Delaware• : Responding to a call to action to oppose an almost 50% increase in the state excise tax on beer, wine and spirits, Beer Activists help defeat the measure in the state Senate.Maine• : Network members helped repeal increased alcohol taxes through a ballot initiative. New York• : The network was activated in support of a proposal to effect a change in the state franchise law so that any small brewer who is less than 5% of a wholesaler’s business would have the ability to terminate a relationship with a wholesaler providing they pay fair compensation to that wholesaler. After passing the legislature, the Governor vetoed the bill.Utah• : Beer Activists contacted about efforts to legalize home brewing.Vermont• : Network members were contacted to show their support for legislation seeking to raise the allowable alcohol content of beer. The bill was duly passed and signed into law.

National Beer Wholesalers Association (NBWA)/Brewers Joint Legislative ConferenceApproximately two dozen BA members attended, making Capitol Hill offi ce visits to discuss issues of importance to • craft brewers.A reception featuring BA members’ craft beer was held. Attendees included Brewers Association staff, craft brewers, • NBWA executives, members of Congress and staff.

Elected Offi cials Brewery Visits ProgramAll brewery members were supplied with contact information and background material. BA members were encouraged • to invite their federal and state representatives for relationship-building visits to their breweries.

Capitol Hill TastingAnnual educational tasting event for Congress held in December in cooperation with the National Beer Wholesalers • Association.32 BA member breweries provided beer and a representative to pour and talk about their beer with more than 500 • attendees.


CRAFT BEER PROGRAM

Seasonal Beer Throughout the YearNewly launched in 2008, this Web site dedicated to seasonal and special release craft beers has generated a lot of attention. As of April 2009, close to 1,000 postings, direct from brewery members, have been added to the database. National media attention on the Web site was received from media outlets including The Associated Press, Food & Wine Magazine and others.

Brew Year’s Eve: April 7, 2008142 breweries signed up and participated in the celebration of the 75th anniversary of beer being back, close to eight months before the offi cial repeal of Prohibition in December of 1933.

American Craft Beer Week: May 12 to 18, 2009A record 180 breweries signed up in 2008 to participate and support this annual program.

SAVOR – An American Craft Beer & Food ExperienceFor this fi rst year event, the Brewers Association Craft Beer Program division generated national and international media coverage for SAVOR. Selling out its inaugural year, SAVOR quickly established itself as the premier beer and food pairing event in the U.S.

Great American Beer FestivalSM

Over 100 media representatives attended the festival. The Craft Beer Program also organized a strategic craft beer and food pairing luncheon for media. Public relations efforts from the Craft Beer Program utilized the festival as a powerful vehicle to help spread the word about craft brewers and the Brewers Association.

Beer Journalism AwardsIn the 5th and fi nal year of the program, a record 146 entries from journalists were received. This program recognized three journalists for their world-class coverage of American Craft Beer.

On- and Off-Premise Sell SheetThis document, available free to our members, highlights the strength of craft beer sales in the marketplace and is a tool members use when selling to retailers and restaurants.

Media Database for Brewery MembersThis Craft Beer Program offers media lists to our brewery members in order to assist them with more effective outreach to the media.

In 2008, the Craft Beer Program worked to increase market share for American craft beer through media relations and member programs. The BA gained national and international media attention for craft brewers from several major media outlets including: The Associated Press, Food & Wine Magazine, Newsweek.com, New York Times, Wine Enthusiast and thousands of newspapers and Internet sites. The division coordinated the following Craft Beer Programs for BA Members:

Celebrate BeerCelebrate BeerCelebrate Beer

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Seasonal BeerTHROUGHOUT THE YEARwww.SeasonalBeerandFood.org

an american craft beer & food experience

(savor)


EVENTS


Attendance for the 2008 Great American Beer Festival was more than 46,000. Judges evaluated 2,902 beers from 472 breweries entered in the competition in 75 categories. The public had the opportunity to sample 2,052 beers on the festival fl oor.

Small Brewing Company and Small Brewing Company Brewer of the Year Ale Smith Brewing Co. Brewing Team

Mid-Size Brewing Company and Mid-Size Brewing Company Brewer of the Year Pyramid Breweries, Inc., Simon Pesch & Tom Bleigh

Large Brewing Company and Large Brewing Company Brewer of the Year Anheuser-Busch, Inc., Brewer, Doug Muhleman

Small Brewpub and Small Brewpub Brewer of the Year Rock Bottom Brewing Team

Large Brewpub and Large Brewpub Brewer of the Year Redwood Brewing Company, Bill Wamby

SAVOR: An American Craft Beer and Food ExperienceSAVOR was created to raise the image of craft beer and specifi cally to produce a BA event focused on craft beer and food pairings. Additional goals were to create a small, high-end event to generate mainstream media interest. The inaugural event, held in Washington, D.C. in May 2008, was a success with tickets selling out in advance. This year’s Savor takes place May 30, 2009 at National Building Museum in Washington, D.C.

an american craft beer & food experience

(savor)

Photos ©2009 Jason E. Kaplan

Photos ©2009 Eddia Arrossi


OUR ALLIED TRADE PARTNERS

BREWERS PUBLICATIONS

Contributions to the Brewers AssociationThe Allied Trade contributes signifi cant fi nancial support and technical expertise to the Brewers Association.

Membership dues in the Brewers Association.• Advertising in • The New Brewer, Zymurgy, Craft Brewers Conference, Great American Beer Festival and National Homebrewers Conference programs.Sponsorship of Great American Beer Festival, World Beer Cup, Craft Brewers Conference and American Homebrewers • Association (AHA) National Homebrewers Conference, AHA National Homebrew Competition and several other programs and services.Participation in technical forums, Power Hour presentations, Craft Brewers Conference seminars and technical content • of magazines.Helping brewers to make better beer and better manage their companies.•

BrewExpo America®

North America’s largest beer industry trade show.• More than 160 exhibitors at BrewExpo America, providing direct customer access to products, demonstrations and • representatives.Held in conjunction with the Craft Brewers Conference.•

Brewers Publications (BP) supports the mission of the Brewers Association by publishing books of enduring value for amateur and professional brewers as well as titles that promote understanding and appreciation of American craft beer by consumers.

BP had a record year in 2008, thanks to strong sales of previously published titles and the release of one book, Michael Jackson’s Great Beers of Belgium. Strong sales during December 2008 netted BP the biggest month on record with over $96,000 in inventory being sold.

Overall sales continued to be led by John Palmer’s How to Brew, published in 2006 and in its third printing. The sale of this title grew 43% from the prior year. Six BP titles hit the top 101 on NBN’s list of overall sales to Amazon – How to Brew by John Palmer (13), Designing Great Beers by Ray Daniels (38), Radical Brewing by Randy Mosher (56), Brew Like a Monk by Stan Hieronymus (89), Brewing Classic Styles by John Palmer and Jamil Zainasheff (90) and The Compleat Meadmaker by Ken Schramm (101).

The overall strength of the Brewers Publications catalog is supported by the fact that over a quarter of the books on the Amazon Beer Bestseller list at any one time are from Brewers Publications.

Rounding out the year in December, the division published the 2009-2010 Brewers’ Resource Directory. This advertising-supported, bi-annual reference publication was distributed to all BA Brewery, Wholesaler and Allied Trade Members in January 2009.

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2003 2004 2005 2006 20082007

$200,000

$300,000

$400,000

$500,000

$700,000

$600,000

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Year

Dollars

BP Book Sales Revenue 2003-2008


AMERICAN HOMEBREWERS ASSOCIATION®

Membership fi nished the year at the highest level since 1998, up more than 10% over 2008. Membership was at 17,316 at the end of the year.

AHA RalliesAHA Rallies are an effective membership generator

for the AHA. These rallies are hosted by BA member breweries; current AHA members get in free, while non-members get in for the price of a discounted AHA membership. In 2008, the AHA held 15 rallies across the country, bringing in 545 memberships, 73% of which were new memberships.

Zymurgy®

The Brewers Association produced six issues of Zymurgy magazine in 2008. Circulation fi nished the year at over 20,000 copies per issue, which is more than 2,000 copies per issue over 2007 year-end circulation. Distribution includes AHA members, BA Brewery and Allied Trade Members, and newsstands and homebrew supply shops.

TechTalkTechTalk, a daily email forum for AHA members, grew to 13,027 participants in 2008. This forum is one of the most popular member benefi ts, regularly receiving more than 40 posts per day.

AHA National Homebrew CompetitionThe 2008 AHA National Homebrew Competition had another record year with 5,643 entries from 1,307 homebrewers, representing an increase of more than 500 entries. The competition is annually the largest beer competition in the world.

AHA National Homebrewers ConferenceThe 2008 AHA National Homebrewers Conference held in June in Cincinnati, OH drew 950 attendees. There were 16 educational presentations, highlighted by keynote speaker Jim Koch of Boston Beer Co., that were available for attendees. The National Homebrewers Conference is the only event of its kind, drawing hundreds of homebrewers from across the nation and around the world to learn, share ideas, homebrew and to have fun.

The 2009 conference is scheduled for June 18-20 in Oakland, CA. Ken Grossman of Sierra Nevada Brewing Co. is the scheduled keynote speaker.

AHA Governing CommitteeThe AHA Governing Committee is made up of 15 members elected by the AHA membership. Two Governing Committee members are selected from the group to serve as the AHA representatives on the Brewers Association Board of Directors.

December2006

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3000

6000

9000

12000

15000

December2005

Membership

18000

Dececcembbembembeer2006

December2007

11,724

17,316

Deccembbembembeer2007

December2008

15,727

December2007

7,574

13,027

Dec bember December2008

11,332

December2006

5,771

0

2000

4000

6000

8000

December2005

TechTalk Participants

10000

12000

14000



Brewers Association Pub Discount ProgramAt the end of 2008, there were 388 participating BA-member breweries/pubs offer discounts on food, beer, and/or merchandise to card-carrying AHA members. The AHA markets those participating breweries and pubs in Zymurgy and on www.beertown.org.

Great American Beer Festival Pro-Am CompetitionThe 2008 Great American Beer Festival held the third annual GABF Pro-Am Competition, in which Brewers Association member breweries entered commercial versions of award-winning AHA member homebrew recipes. The competition was another great success with 58 entries submitted. All of the entered beers were also featured on the festival fl oor at the GABF Pro-Am Booth, which was very popular with festival attendees.

Government AffairsIn 2008, the AHA worked with AHA members in Utah and Alabama on legislation to legalize homebrewing in those states. The AHA is working with the BA Government Affairs Committee and the House Small Brewers Caucus on legislation regarding shipment of homebrew for competitions. AHA members also play a signifi cant grassroots role in supporting the craft beer industry. AHA members have demonstrated a desire to get involved to help protect consumer access to beers made by craft brewers and form the foundation of the Support Your Local Brewery network.

Other AHA ProgramsRetail Membership Sales Program—allows homebrew supply shops to sell AHA memberships. The program • generated 337 memberships in 2008. In December 2007, the AHA launched pre-paid AHA membership cards to be sold through retailers.Liaison “Evang-Ale-ist” Program—50 AHA member representatives from around the US and Canada help to promote • the AHA and generate AHA memberships. AHA Liaisons brought in 123 membership years in 2008.Big Brew—A simultaneous world-wide brewing event held on the fi rst Saturday of May to celebrate National • Homebrew Day.Mead Day—A simultaneous meadmaking event held on the fi rst Saturday of August.• Teach a Friend to Homebrew Day—a day to train new homebrewers on the fi rst Saturday of November.• AHA/BJCP Sanctioned Competition Program—the AHA and Beer Judge Certifi cation Program work together on a • joint program to sanction and promote homebrew competitions.AHA Clubs Program—the AHA maintains a database of registered homebrew clubs, and organizes six Club-Only • Competitions each year. The AHA also awards the annual AHA Homebrew Club of the Year Award.

EducationHomebrewers play a key role in educating the public about locally produced beer and beer styles. They are the most knowledgeable craft beer enthusiasts.


FINANCIALS

2008 2007

ACTUAL ACTUAL

REVENUE:

ADVER. & SPONS. REVENUE 1,123,007 1,057,717

BOOK/MERCH. SALES 931,939 800,733

MEMBERSHIP REVENUE 1,282,966 1,097,835

EVENT REVENUE 3,367,969 2,215,741

GOV’T GRANT FUNDING 342,380 244,357

ALL OTHER REVENUE 125,457 173,412

TOTAL REVENUE $7,173,718 $5,589,795

EXPENSES:

GEN. OFFICE/ADMIN. EXP. -230,707 -149,089

DEPREC. & AMORT. -43,393 -58,205

SALARIES & BENEFITS -2,009,848 -1,750,471

INSURANCE & LEGAL -141,701 -144,516

RENT EXPENSE -124,663 -117,692

EVENT OPERATIONS -1,489,258 -904,625

SALES & MARKETING -348,042 -306,737

PRINTING -243,373 -253,371

POSTAGE & SHIPPING -287,195 -220,883

COST OF GOODS SOLD -298,663 -252,116

TRAVEL -365,067 -197,006

OUTSIDE SERVICES -491,582 -437,782

ALL OTHER EXPENSES -245,296 -182,865

TOTAL EXPENSES ($6,318,790) ($4,975,358)

NET SURPLUS $854,928 $614,437

ASSETS: 12/31/08 12/31/07

CASH $9,460 $47,942

RESERVES $2,831,419 $1,921,027

ACCOUNTS REC. $583,986 $403,073

INVENTORY $303,401 $301,490

PREPAID EXPENSES/OTHER $76,749 $88,477

TOTAL CURRENT ASSETS: $3,805,015 $2,762,009

LONG-TERM ASSETS $13,268 $15,061

FIXED ASSETS $126,877 $136,479

TOTAL ASSETS: $3,945,159 $2,913,549

LIABILITIES: 12/31/08 12/31/07

ACCOUNTS PAYABLE $289,077 $158,262

DEFERRED DEPOSITS $1,106,470 $1,082,542

OTHER $101,320 $79,381

TOTAL CURRENT LIAB. $1,496,867 $1,320,185

RETAINED EARNINGS $1,593,364 $978,928

CURRENT YR. EARNINGS $854,928 $614,437

TOTAL LIABILITIES: $3,945,159 $2,913,549

2008 FINANCIAL STATEMENT (Consolidated) December 31st, 2008 abbv. Balance Sheet

UPCOMING EVENTS

Brewers Association736 Pearl Street • Boulder, CO 80302 USA1.888.822.6273 (US and Canada only) • +1.303.447.0816 • FAX +1.303.447.2825www.beertown.org • [email protected]


2009

Membership RalliesStone Brewing and World Bistro & Gardens• March 21, 2009 / Escondido, CAUpland Brewing Company• New Belgium Brewing Co.• April 3, 2009 / Fort Collins, CO

National Homebrew Competition - First RoundMarch 25 – April 8, 2009 / National

National Homebrew Day (Big Brew)May 2, 2009 / Worldwide

National Homebrewers ConferenceJune 18-20, 2009 / Oakland, CA

Mead DayAugust 1, 2009 / National

Teach a Friend to Homebrew Day November 7, 2009 / National

2010

National Homebrew CompetitionApril 2010

National Homebrew Day (Big Brew)May 1, 2010 / Worldwide

National Homebrewers ConferenceJune 2010

Mead DayAugust 7, 2010 / National

Teach a Friend to Homebrew Day November 6, 2010 / National

BREWERS ASSOCIATION PROFESSIONAL DIVISION

2009

NBWA/Brewers Joint Legislative ConferenceMarch 29-April 1, 2009 / Washington, DC

Craft Brewers Conference & BrewExpo AmericaApril 21-24, 2009 / Boston, MA

American Craft Beer WeekMay 11-17, 2009

Savor: An American Craft Beer and Food ExperienceMay 30, 2009 / Washington, DC


September 24-26, 2009 / Denver, CO

2010

Craft Brewers Conference & BrewExpo America®

April 7-10, 2010 / Chicago, IL

World Beer Cup® Gala Awards DinnerApril 10, 2010 / Chicago, IL

NBWA/Brewers Joint Legislative ConferenceApril 18-21, 2010 / Washington, DC

American Craft Beer WeekMay 17-23, 2010


September 16-18, 2010 / Denver, CO

brewers association 2008 stewardship report... brewers association 2008 stewardship report 5 here...

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