The news for the past week or so, on either side of the pond, has been pretty sucky. But here’s some good news: According to the Brewers Association, beer sales, in dollars, have increased 15% over the same time last year. Volume was up 14%.
I know for sure that I’m not entirely responsible for this uptick. Oh, and by the way, volume increased by 9% in the first half of 2010.
Even cooler is that there are over seven hundred craft breweries in the pipeline.
Brewers Association Press Release
As you probably know, I’m an NPR junkie. (Infer from that what you like.) Although this certainly shouldn’t be news to any of you, sales of the domestic industrial light lagers is down yet again, but craft beer sales are still up in spite of the economy, and NPR has a story about it.
NPR: Changing Tastes Drive Shift In Beer Sales
Here’s an excerpt:
But Harry Balzer of the NPD Group market research firm suggests [new packaging] may not be enough to boost sales over time. “The only benefit you provide me is novelty,” Balzer says of new packaging. “And the problem with novelty — in the end — is that once I try it, it’s no longer new. It’s old.”
And another:
Craft beers are just a tiny piece of the overall beer market, but at a time when overall consumption has fallen, craft beer sales have risen. Sales were up about 7 percent last year — and appear to be doing as well or better this year.
Boulder, CO – Monday, February 23, 2009 – The Brewers Association, which tabulates industry growth data for U.S. breweries, announced that today’s small independent craft brewers are gaining alcohol market share due to a shift toward full flavor beer and increased support for local breweries. From 2007 to 2008, estimated sales by craft brewers were up 5.8 percent by volume and 10.5 percent in dollars¹. Overall share of the beer category from craft brewers was 4.0 percent of production and 6.3 percent of retail sales. More than 1 million new barrels of beer were sold in 2008, and close to half of those barrels were beer from craft brewers.
“2008 was a historic year for beer with the large brewers consolidating and imports losing share, while the top ten selling beer brands dropped in sales. At the same time, small independent craft brewers continued to gain share and attention,” said Paul Gatza, Director of the Brewers Association.
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With total U.S. beer being more than a $100 billion industry, the Brewers Association estimates the actual dollar sales from craft brewers in 2008 were $6.34 billion, up from $5.74 billion in 2007. Taxable barrels of the total beer category was 1,210,018 more in 2008 with craft brewers producing 473,364 of those barrels. Total craft brewer barrels for 2008 was 8,596,971, up from 8,123,607 barrels in 2007.
Beer’s popularity as America’s favorite fermented beverage continued in 2008 with Gallup stating “beer is back to a double-digit lead over wine.” Taking into account the challenges in today’s economy, BevincoNielsen released a survey showing beer was faring better than spirits, with wine lagging. The Brewers Association emphasized trading across from wine and spirits to beer continues, with some of today’s wine drinkers discovering the affordable enjoyment and rewards of craft beer.
These increases in share and barrels for craft brewers come at a time when, according to the Brewers Association, the cost of operating a small brewery increased over 39 percent in the period of November 2007 to November 2008. The Brewers Association states that today’s craft brewers face many challenges including:
For more statistics visit 2008 Craft Beer Industry Statistics. A more extensive analysis will be released April 22 during the Craft Brewers Conference in Boston, Massachusetts. The Association’s full 2008 industry analysis, which shows regional trends and sales by individual brewery, will be published in the May/June issue of The New Brewer.
¹Sales by craft brewers represent total taxable production. Dollars reported by Information Resources Inc. for total U.S. supermarkets.
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 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 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.
In case you hadn’t noticed, the American economy is in a world of hurt. Ford just announced a huge quarterly loss and thousands of job cuts. GM and Chrysler are expected to do the same.
Anheuser-Busch, in the midst of being acquired by InBev, is doing just fine though. In the third quarter:
International sales were even better.
A look at Anheuser-Busch’s 3Q business
I’ve heard that beer is mostly recession-proof.
How about you? Have your beer purchasing patterns changed lately?
As promised, more numbers are now out.
You can read the Brewers Association press release and check out the statistics.
Here’s an obligatory pie chart. (Who doesn’t love charts?)
Stan Hieronymus:
97% of the breweries in the country make just 3.8% of the beer. Meaning 3% of the breweries produce 96% of the beer.
(via Appellation Beer, among others)
According to Information Resource Inc., “Craft” beer dollar sales were up 16.7% in 2007. Yet another double-digit increase.
Craft beer sales were reported up by 14% in the first half of 2007 and up almost 18% in 2006.
More numbers are coming soon.
(via Appellation Beer)
Over at the “Brew” Blog, an industry-focused blog sponsored by the Miller Brewing Company, notes that craft beers increased their shelf space at retailers by 16%, according to ACNielsen. They note that this shouldn’t be surprising since craft beer shipments increased nearly 12% in 2006. They also note that imports also increased their shelf space by 6.5%.
The big question now is how much space crafts and imports will gain as retailers reset their shelves this spring — and what brands will lose out.
‘Round these parts supermarkets don’t sell alcohol. My preferred retailer devotes a majority of their space to craft beers and imports. Oh, sure, there’s some megabrews, but it’s not like they’re taking up half of the space. Of course, the convenience store down the road only has mainstream offerings; I think the most exotic thing they have is Killian’s Irish Red.
How about you? Have you noticed more or less craft brews where you buy beers?
Brewers see mixed results as beer thirsts turn flat
Brewers in Japan saw mixed results in 2006, but analysts agree that prospects are dim. The Japanese just don’t like beer as much as they used to.
Beer Reigns Supreme as Global Driver of Food & Beverage Growth
For the second year in a row, ACNielsen finds that beer is the number one category for growth value in the world.
Beer Author And Historian Alan Eames Dies At 59
Nicknamed “The Beer King” Eames travelled around the world and authored Secret Life of Beer and A Beer Drinker’s Companion. He also opened a popular tavern in Portland, Maine. Raise a glass to Mr. Eames and thank him for making the world a better place.
US officials worry underage youth could access Anheuser-Busch’s beer-themed Web site
Anheuser-Busch has gone to the unprecedented extreme of actually having people check on the information provided by visitors to their newly-launched Bud.TV site. Still, this is apparently not enough for Attorneys General in 23 states, who have asked the brewing powerhouse to put in even more stringent protections. Am I missing something here? They want to keep underage persons out of a site that has beer-themed entertainment? Are they actually selling beer to people through their internet connection? This is ridiculous.
Villagers killed as elephants develop taste for rice beer
In northeastern India, human encroachment on elephant habitats has developed into a deadly problem as drunk elephants rampage through a village.
Washington creates new beer commission to market microbrews
Washington State, where the brewpub craze started twenty years ago, has created a state-sanctioned commission to promote the products of the state’s microbrewers, in this case defined as those who sell less than 100,000 barrels a year.
Coors leads surge for clean water
Denver brewer donates $30,000 to effort to monitor and heal the Shenandoah River.
An airline named after a beer
One out of every three beers consumed in India is a Kingfisher. Can they run an airline? Apparently so.
Man steals beer from minor league baseball stadium
He got arrested for it in 2002 and received a suspended sentence. I doubt he’ll get such a deal this time.
Cheers for beer makers
Michigan craft brewers’ sales are up, but claim state law is stifling growth.
“Savory” Seasonals
American megabrewers Anheuser Busch and Miller are experimenting with flavored beers for the holidays.
Big dry lifts price of brewing beer
Drought conditions in Australia are making barley more expensive to grow, making malt and, thus, beer, more expensive to make.
In case you missed it, a recent news item points out that while overall beer sales were flat, craft beer sales were up 11% since last year.
Stan over at Appellation Beer offers his 10 Reasons Craft Beers Sales Are Hot, giving some big props to that giant of the craft brewing movement: Michael Jackson.
