Showing posts with label beer markets. Show all posts
Showing posts with label beer markets. Show all posts

Friday, November 4, 2011

Craft Breweries Continue to Grow


I continue to read about the terrific growth in both volume and sales dollars for the craft beer market.  The fact is, the number of actual breweries are also increasing as well as beer brands, and this is good for the beer drinker.

The count is now slightly over 1,700 operating breweries in the USA, which means there are almost 10% more breweries than a year ago and the growth continues.  Furthermore, as of June 2011, there were over 530 breweries in planning, which translates into more than one start up every day for the next year! Did you know, there were 1,751 breweries just before the prohibition occurred?  A number we are quickly approaching. Back in the early 1900, most towns and cities enjoyed a brewery in the center of town - this is quickly becoming the case for 2011. Together with these new breweries, there  are also a lot more diverse brewing styles being offered today, particularly by the micro craft brewers, and the quality of today’s craft beer is fantastic!


There are several conversations on defining the segments of today's beer market, allow me to outline the ‘official definition’ as outlined by the Brewer’s Association-

Microbrewery: A brewery that produces less than 15,000 barrels. When Nor'easter Brewing Company is operating, this will be the segment the operation will fall into.

Brewpub: A restaurant-brewery that sells 25% or more of its beer at the restaurant The beer is often dispensed directly from the brewery's storage tanks.


Contract Brewing Company: A business that hires another brewery to produce its beer. It can also be a brewery that hires another brewery to produce additional beer. The contract brewing company handles marketing, sales, and distribution of its beer, while generally leaving the brewing and packaging to its producer-brewery

Regional Brewery: A brewery with an annual beer production of between 15,000 and 6,000,000 barrels. Note, the BA just increased the output to 6,000,000.

Large Brewery: A brewery with an annual beer production over 6,000,000 barrels.  Generally referred to as BMC – for Bud, Miller Coors.

The large breweries are always filtered out of articles and comments on the craft beer market. Mainly due to the automated brewing process and their lack of ‘hand crafted approach’. Clearly, the devoted craft beer drinkers divorce even the breweries that are owned by BMC and never consider them as a craft brewer. Breweries such as Goose Island, Redhook, Kona, Widmer and Leinenkugel are every bit a craft brewery, but the fact they are owned by the biggies negates most purists from including them ….. is this fair?

Thursday, October 20, 2011

A look at Today's Beer Market

Nielson, the marketing survey company,  just reported on current beer sales and confirmed that craft beer is still growing, despite overall beer sales declining in the USA.  The report reviewed strong overall summer beer sales, although off-premise continued to be slower than normal.  Craft beers enjoyed a 16.8% increase by volume and an 18% increase in sales dollars for 52 weeks, ending September 17.  The average case of craft beer is now $31.72.  Note, craft beer only makes up 5% of the total USA beer market.


Neilson further commented on imported beers and that they too have declined 1.1%, while overall domestic beer volume in USA declined by 1.7%.  Of interest, is the 'below premium' beer (selling at $14.65/case average) fell by a whopping 3.9%.  Among the imports which was an exception were the Belgium beers, lead by Stella Artois - this country's imports actually increased for the same 52 weeks by 26% ! Although overall total beer sold in USA declined by volume, but dollar sales increased by 0.8%.  The average price for a case of beer rose 2.3% and is now $19.74/case.


Overall alcohol (beer, wine, spirits) prices, according to the US Consumer Price Index,  rose 1.4% for the year through September.  Overall, off-premise pricing for all alcohol was flat and on-premise increased by 3.5%.  By category, beer pricing increased 2.3% for on-premise and + 1.3% for off-premise.