Craft Beer: By the Numbers

Discussion in 'Beer News' started by JLaw55, Mar 17, 2015.

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  1. JLaw55

    JLaw55 Pooh-Bah (2,417) Jul 10, 2014 Missouri
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  2. aratcliffe

    aratcliffe Initiate (0) Jan 6, 2015 Kansas

    Have to wonder how high that share percentage can get before course correction kicks in and we start losing some weaker offerings...
     
  3. hopfenunmaltz

    hopfenunmaltz Pooh-Bah (2,635) Jun 8, 2005 Michigan
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    One thing that may happen in next years numbers is a slower growth as more of the breweries are not in the total due to buys outs or investment that exceeds the 25% rule. This would include some bigger ones such as Full Sail and Founders.

    Edit - yes there are many weaker ones that may fail.
     
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  4. JLaw55

    JLaw55 Pooh-Bah (2,417) Jul 10, 2014 Missouri
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    I agree, I can see that coming, just not sure how soon. It can't keep growing exponentially without some being lost along the way, after all, there are only so many beers people can drink in a year. Once supply outweighs the demand, those weak ones will fall away. Probably not a bad thing overall though.
     
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  5. JLaw55

    JLaw55 Pooh-Bah (2,417) Jul 10, 2014 Missouri
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    It will definitely be harder to classify what is and isn't included in the numbers as more and more breweries change ownership, take buyouts, receive investments from other parties (i.e. BMC), etc. This is where the true craft numbers begin to skew a bit.
     
  6. Sludgeman

    Sludgeman Grand Pooh-Bah (3,356) Aug 17, 2012 District of Columbia
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    Agree. This has been argued before, but to bring it up again. The Brewers Association defines craft brewers as small, independent & traditional. Boston Beer, Sierra Nevada, New Belgium, Lagunitas are not so small. When do the big "craft brewers" become too big? I suspect the Brewers Association will modify its definition to suit the situation. For example, changing the 25% ownership characteristic.

    For me, make a good beer and I don't care who you are, how big you are or what some of your other products might be.
     
  7. BBThunderbolt

    BBThunderbolt Grand High Pooh-Bah (7,846) Sep 24, 2007 Kiribati
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    I'm not sure that a "correction" is coming in the near future. Yes, 11% is a healthy chunk, but it means that 89% of the market is still available for craft brewers to grab. One thing is the generational aspect. As the current folks who are loyal to one of the Big Brands age, they're being replaced by a younger generation of drinkers that are used to craft beer, and probably won't making a switch to BMC as they age. Do we think any of the folks on this site who are in their 20s now, will, as they reach their 50s, say "eh, I've had enough IPAs and Bourbon stouts for one life, I think I'll just drink this watery stuff from now on"?

    I believe the craft pie will only get bigger as we go forward, and there will be more slices available to more breweries.
     
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  8. SensorySupernova

    SensorySupernova Initiate (0) Mar 21, 2014 California

    The best news: Based on the data they give, there was a 42% increase in the volume of beer produced between 2013 and 2014. However, the retail dollar growth was only 22% over the same period. That means my habit is getting cheaper!
     
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  9. 1eyed_jack

    1eyed_jack Initiate (0) Dec 19, 2012 Illinois

    Could have fooled me!
     
  10. JLaw55

    JLaw55 Pooh-Bah (2,417) Jul 10, 2014 Missouri
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    I completely agree, that is why I don't take the Brewers Association too seriously because they just change the criteria so they can fit breweries into the group. Kind of seems pointless once you change too many things.

    I couldn't agree more though with your last statement, this is my complete philosophy. If it tastes good, drink it!
     
  11. bluehende

    bluehende Initiate (0) Dec 10, 2010 Delaware

    Where did the 42% increase number come from. I read it as 11% increase in volume with the 22% increase in retail dollar growth.
     
  12. aratcliffe

    aratcliffe Initiate (0) Jan 6, 2015 Kansas

    Production volume, not sales volume.
     
  13. JLaw55

    JLaw55 Pooh-Bah (2,417) Jul 10, 2014 Missouri
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    That is another point to consider, I agree with you there. As the BMC demographic ages, they are going to continuously lose customers. That is unless they start making more beers outside their normal adjunct lager style. Or if they buy up enough craft breweries to offset the loss from their mainstay beers. Who knows, it could go several different ways and only time will tell.
     
  14. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
    BA4LYFE Society Pooh-Bah

    They already bumped up the limit once, to accommodate Boston Beer and then Yuengling.

    Their current definition is "Annual production of 6 million barrels of beer or less"
     
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  15. jmdrpi

    jmdrpi Grand High Pooh-Bah (8,989) Dec 11, 2008 Pennsylvania
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  16. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
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    Paging @jesskidden

    Cheers!
     
  17. SensorySupernova

    SensorySupernova Initiate (0) Mar 21, 2014 California

    "Craft Beer Barrels Produced" in the infographic on the page. It is a bit confusing because some sections refer to "volume share". If the entire beer market produces more beer, then volume share will not necessarily go up even if more volume is produced.
     
  18. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
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    Yup, 15.6M to 22.2M is indeed a percentage increase of 42.3%.

    I suspect that much of that increase was due to the BA redefining what a craft brewery is (e.g., Yuengling is now considered a craft brewery by the BA definition updates).

    Cheers!
     
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  19. bluehende

    bluehende Initiate (0) Dec 10, 2010 Delaware



    After looking my 11% number grabbed too quickly was the market share. The other graphic refers to a dollar value growth of 22% with a very big 18% of volume growth. I would guess they would be the two numbers that are apples to apples. That would imply a price increase of around 4% overall. I have seen that this number would make sense. In general 10.00 six packs a year ago are around 10.50 now around here.
     
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  20. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
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    The biggest price increase (on a per volume basis) that I experienced over the past year(s) was Victory beers that went from 6-packs to 4-packs; waaaaay more than 4%,

    Cheers!
     
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