craft beer industry update · 2018-04-05 · beer production is attributed to the rules of...
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Craft Beer Industry Update
Damon ScottTechnical Brewing Projects Coordinator
Brewers Association Technical Committee
Draught Beer Quality
Quality
Safety
Sustainability
Supply Chain
Engineering
Information Technology
Brewers Association Technical Resources
Click to Edit Subtitle
BA CRAFT BREWER DEFINITION:
An American craft brewer is small, independent and traditional.
Small
• Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales). Beer production is attributed to the rules of alternating proprietorships.
Independent
• Less than 25 percent of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member that is not itself a craft brewer.
Traditional
• A brewer that has a majority of its total beverage alcohol volume in beers whose flavor derives from traditional or innovative brewing ingredients and their fermentation. Flavored malt beverages (FMBs) are not considered beers.
It’s 2018
Where are we now?
More Breweries Than Even Before!
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Number of Breweries, 1873 - 2017Sources:
Brewers Assoication
and Beer Institute
6200
More Breweries Than Even Before!
179 Regional Breweries• Produce more than 15K bbls
6000+ Microbreweries/Brewpubs• Produce less than 15K bbls
Click to Edit SubtitleCRAFT BEER IS NO LONGER LOCALIZED…IT IS EVERYWHERE
Michigan: 318
Ohio: 213
Indiana: 135
Pennsylvania: 284
New York: 332
Illinois: 195
Minnesota: 158
Wisconsin: 161
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More Americans live near a Craft Brewery
83% of Americans live within 10 miles of a brewery!
Those breweries employ ~130,000 people directly!
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1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
Breweries and Brewery Permits, 1995-2017
2500
12
67
1213
15
18 18
12
65%
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2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Annual Growth Rate, 2007-2017
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Years of double-digit growth lead to large base:
~ 25 million bbls(2017 year-end)
Equivalent of adding 1 New Belgium in one year!
~ 1 million bbls (added over 2016)
2016 Size (bbls) % of 2017 Growth
>100,000 -11.9%
10K-100K 38.9%
<10K 72.9%
Beer Industry Production Survey
67
45
34
23
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53
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25
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Craft Beer Wine Spirits
Nielsen Surveys: Sum of very/somewhat important
Total 21+ 21-34
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200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
2,000,000
2010 2011 2012 2013 2014 2015 2016
Premise Use Production, 2010-2016
Channel
Small & Independent Craft Beer
All Beer
ON-PREMISES 27% 18%
OFF-PREMISES 64% 82%
AT THE BREWERY 9.2% <1%
Growth of “Own-Premise” Consumption
Craft Maltsters Guild Member Malt Houses
Craft Beer makes up only ~13% of
total beer sales by volume, but
accounts for about 35% of U.S
barley consumption!
BA has invested in a research grant program:
• Test current varieties in growing regions
outside current dominant regions (ESBN)
• Develop winter barley lines
• Investigate flavor contributions of different
varieties
Over $1.2 million invested since 2015
11.7%13.9%
17.6%
22.5%
26.5%
29.3%
0.6% 0.8% 1.1% 1.5% 1.9% 2.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2012 2013 2014 2015 2016 2017
IPAs as % of Craft and Overall Beer
Craft All Beer
IPA is still the new IPA
BA is also investing in Public Hop Breeding
Program:
• Novel flavor and aroma attributes
• Increased downy mildew resistance
• Increased powdery mildew resistance
• Comparable, or improved agronomic
performance
2011 2012 2013 2014 2015 2016
2012 2013 2014 2015 2016 2017
Cascade Cascade Cascade Cascade Cascade Cascade
Centennial Centennial Centennial Centennial Centennial Centennial
Chinook Chinook Simcoe Chinook Chinook Chinook
Willamette CTZ Chinook Simcoe Simcoe Simcoe
Simcoe Simcoe CTZ Citra Citra Crystal
CTZ Amarillo Amarillo Hall Mitt (Ger) Amarillo Citra
US Golding Crystal Crystal Amarillo Mosaic Nugget
Crystal Willamette Willamette Crystal Crystal Amarillo
Amarillo Saaz (CZ) Citra Magnum (Ger) Hall Mitt (Ger) Mosaic
Ahtanum US Golding Saaz (CZ) CTZ CTZ Magnum (Ger)
Top 10 Hop Varieties – Annual Hop Survey Results
CHEERS!