Georgia's open for (brewery) business

Brewery taprooms are once again open for business in the state of Georgia.

As of 1 June 2020, Georgia governor Brian Kemp has allowed bars and nightclubs, relaxing the coronavirus shutdown. In order to reopen, bars and nightclubs will need to meet 39 mandatory measures to "ensure patron well-being." Among those measures are

• screenings for employees
• limiting the number of people in the building (25 people or not more than 35% of total occupancy)
• regular and thorough sanitizing
• only serving drinks to seated patrons
• limiting party sizes to six people
• limiting the ability for congregating.

Pictured: "Patio, Pints & Food Truck," a signboard for Wild Heaven Beer, a 'craft' brewery in Avondale Estates, Georgia, USA.

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And so it has come to this.

In this supermarket, cases of hard seltzer dominate the floor of its refrigerated beer aisle. In just a few years, seltzer has come to dominate beer and 'craft' business to a significant extent.

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And so it has come to this.

• Hard seltzer is taking the US by storm. Sales of the canned fizzy beverages from brands like Whiteclaw, Truly, and Bon & Viv have boomed over the last year. The category, currently worth $550 million, could grow to reach $2.5 billion by 2021, said Sean King, an analyst at UBS. That implies an annual growth rate of 66% and a jump in consumption from 14 million cases in 2018 to 72 million cases in 2021.

  — Markets Insider (30 July 2019)

• Hard seltzer is what it sounds like, a seltzer spiked with alcohol. At their most basic, hard seltzers have three ingredients: carbonated water, alcohol, and flavoring. Many brands infuse their seltzers with alcohol from fermented cane sugar. Some also use malted barley, like the throwback spiked seltzer-like beverage, Zima, which was created in 1993 by Coors. As non-alcoholic seltzer has risen in sales year after year, hard seltzer has skyrocketed in tandem. By 2021, some analysts predict hard seltzer could be a $2.5 billion industry. It’s experienced market growth of 200% so far this year alone.

  — Wine Enthusiast (20 September 2019)

  
  

• Hard seltzers have positioned themselves at the nexus of convenience and health. These carbonated water-based ready-to-drink [RTD] cocktails, which are made either from malted barley or fermented sugar, typically clock in at 100 calories or less per serving, compared with heavier beers, wines, or cocktails that have from 100 to 400 calories per serving. They’re low in alcohol as well, ranging from 4.5% to 6% ABV. They’re also gluten-free [...] besides offering the convenience of a shatterproof portable can. [...] Pricing varies, but hard seltzers are usually cheaper than craft beer and definitely less expensive than a mid-range bottle of wine or spirits.

  — SevenFifty Daily (12 April 2019)

  
  

• Typical of the bunch is Truly Hard Seltzer in blueberry and açaí flavor, which comes in 12-ounce slim cans, each with 100 calories, 5% alcohol, and two grams of carbs—gluten-free, of course. Truly is made by Boston Beer, whose name belies its recent focus. Beer, including Samuel Adams, makes up just under one-third of estimated company volumes. The rest comes from hard cider, tea, and seltzer. Boston is No. 2 in hard seltzer, with 26% of the market, behind privately held Mark Anthony Brands and its White Claw line, with 59%.

  — Barron's (12 February 2020)

  
  

• Sales of hard seltzer have now exceeded $585 million for the 52-week period that ended on March 23, 2019, according to Nielsen. This represents approximately 1.4 percent of the total beer/flavored malt beverage/cider market. In dollar sales, the category grew 185 percent, compared to a year ago, while unit sales grew 196 percent. While seltzer continues to grow its market share aggressively across Nielsen’s measured off-premise outlets, other segments of the market are flattening. During the 52-week period that ended on February 23, 2019, beer/flavored malt beverage/cider sales grew 0.9 percent, according to Nielsen, while wine sales expanded 2.4 percent and spirits sales increased 3.8 percent in the same period.

  — SevenFifty Daily (12 April 2019)

As Alan McLeod (of A Better Blog) commented (not so) tongue-in-cheek:

The BA [U.S. Beer Association] just needs to adjust the definition of craft beer to solve this.

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Baltimore Beer Week is no more (at least for 2019).

There's sad news out of Baltimore, Maryland, where humans live.

Baltimore Beer Week will not be held this year. If it had been, this would have been its 11th iteration.

The pro bono efforts of its organizers, particularly of Joe Gold and Dominic Cantalupo —and of all the breweries, businesses, pubs, and volunteers who contributed for a decade— are to be commended, appreciated, and profoundly thanked. Maybe not the O.G. city-wide beer week (that honor belongs to Philly Beer Week of Philadelphia, Pennsylvania) but, yet, for those ten years, it was a premier beer destination for, and of, the U.S. east coast. Baltimore Beer Week will be fondly remembered and forlornly missed.

As the organizers state, the festival may have been a victim of its own success. The very number of breweries in Baltimore, and of all of Maryland —and more broadly noting, the numbers throughout America now— vs. the smaller numbers of even a decade ago might negate the purpose of such a gathering or at least create too much 'noise' to make it viable.

That being said, success does not obviate celebration but engenders delight in its observance. One hopes for the future resuscitation of Baltimore Beer Week.

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Tastes not-so-great, barely less filling: Michelob Ultra continues its fast growth.

'Craft' breweries make pastry stouts and beers with fruit loops. Mega-breweries do this.

Michelob Ultra has surpassed Miller Lite as the third-best best-selling beer in the U.S. Bud Light and Coors Light remain at number one and two, respectively.

Michelob Ultra launched nationally in 2004, and, according to sales data, it’s now the third-largest beer brand in America, with Miller Lite slipping to number four. That’s by dollar sales, though, not volume. Because Michelob Ultra costs more than Miller Lite, it still sells less by volume than Miller Lite, but rakes in more money.

'The first two years [of Michelob Ultra sales] were ridiculous and it’s been a double-digit growth brand for a decade. There’s nobody else except for upstart brands that can lay claim to that,' Bryan Roth, a beer writer who’s covered Michelob Ultra extensively, tells The Takeout. A piece he wrote for Good Beer Hunting last year calls Michelob Ultra 'the most important American beer since Bud Light.' [...] 'The way the brand has integrated itself into the lifestyle activity and the minds of people consuming it is a true differentiator. It’s built this ‘better for you’ category for modern beer audiences.'

— Kate Bernot
The TakeOut.

Almost three decades ago, 'clear ' beer —implied as a product better for you— fell with a thud. In this year's data, there is a 'sobering' trend for the conglomerating breweries to note. Of the top 20 brands (by sales dollars), only four —Michelob Ultra (Anheuser-Busch), Modelo (Constellation / Anheuser-Busch), Natural Light (Anheuser-Busch) and Stella Artois (Anheuser-Busch)— are up in sales. Dollar sales of Modelo have increased 18.9% over last year; Stella barely 0.2%. Miller Lite, owned by Molson Coors, is down 0.3%.

What's it all about, Alfie? Other than the dollars, not much. One can of Michelob Ultra contains 95 calories and 2.6 grams of carbohydrates, whereas Miller Lite contains 96 calories and 3.2 grams of carbohydrates. Tastes not-so-great; barely less filling.

The only 'craft' beer on the list —to be precise, the only beer produced by a [U.S.] Brewers Association-defined 'craft' brewery— is Yuengling Lager. Its dollar sales are down 3.5%, this year vs. last.

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Resistance is futile. Anheuser-Busch's Brewers Collective

Anheuser-Busch In-Bev' Brewers Collective has purchased 20,000-barrel-per-year* 'craft' brewery Platform Brewing of Cleveland (and Columbus and Cincinnati), Ohio.

ABIB announced:

[Platform's] unparalleled creativity and experimentation has resulted in more than 600 recipes that include a variety of unique seasonals, sours, ciders and fruit ales, barrel-aged beers, and a line of hard seltzer.

Six-hundred 'recipes'! Wow! Such vast expertise! Or, as Jeff Alworth, at Beervana, put it:

Platform offers beer slushies, beer cocktails, seltzers, and hazies. [...] It doesn’t seem like a stretch to suggest ABI will be using Platform to reach younger Millennials and Gen Z drinkers.

On-line beer news site Brewbound (itself in recent news, unfavorably) interviewed Platform's co-founder Paul Benner.

Benner said the Ohio craft brewery began “exploring different investment mechanisms” about six months ago in an effort to continue the company’s upward growth trajectory. Ultimately, Benner said he and co-founder Justin Carson were attracted to the “autonomy and independence” A-B provides the founders in the daily decision making of its acquired craft brands. “As we became more educated on what that partnership actually looks like, it became more and more clear this was the best option for us for the short-term and the long-term as a company”

But not the medium-term? 'Autonomy'? Investment 'mechanisms'? Gobbledygook. How about honesty: "We wanted to make lots of money."?

Adding Platform to the list, here's the scroll of shame (my phrase) and the date each 'craft' brewery sold (out), alphabetically:

• Goose Island (March 2011)
• Blue Point (February 2014)
• 10 Barrel (November 2014)
• Elysian (January 2015)
• Golden Road (September 2015)
• Breckenridge (Dec 2015)
• Four Peaks (December 2015)
• Devils Backbone (April 2016)
• Karbach (November 2016)
• Veza Sur (April 2017)
• Wicked Weed (May 2017)
• Virtue Cider (September 2017)
• Platform Beer (August 2019)

At some point this year, Anheuser-Busch InBev rebranded its portfolio of (now, lucky 13) acquired 'craft' breweries from “The High End” to the “Brewers Collective.” The ABIB-borg collective. Resistance is futile.

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#VeggieDag Thursday: Food & drink (and more) on Independence Day, by the numbers

• $6.8 Billion: Amount Americans plan to spend on food for the 4th of July.
• 150 Million: Hot dogs will be consumed on the 4th of July.
• $1+ Billion: Amount Americans will spend on beer for the 4th of July, making the day the nation's top beer-drinking holiday.
• $568 Million: Amount Americans will spend on 4th of July for wine.
• $1+ Billion: Amount Americans will spend on fireworks in 2019.
• $5.4 Million: Value of American flags imported annually (mostly from China).
• 47+ Million: People traveling 50+ miles from home for the 4th of July.
  — Via WalletHub.
  4 July 2019.

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For Independence Day, three out of four Americans choose beer...

...that is, for those Americans who drink or serve alcoholic beverages.

Here are more beer-on-Independence-Day statistics, from studies commissioned by folk who sell beer.

The Beer Institute asked legal-drinking-age adults what alcohol beverage they’d be celebrating with during the Fourth of July holiday. Seventy-five percent of people planning to host or attend a Fourth of July celebration will serve or drink beer. Beer is nearly twice as popular as any other alcohol beverage, with 64 percent of people saying they plan to drink beer compared to 37 percent for wine and 32 percent for hard liquor.

— Beer Institute

For brewers, distributors and retailers, Independence Day marks the height of the summer beer selling season. Much like Black Friday is a milestone for traditional retailers, the Fourth of July is a milestone for beer sales. In some states, beer distributors will be delivering double the beer of a typical week. NBWA and Fintech® got together and worked through on- and off-premise volumes for beer distributor sales to retailers across the country in 2016. The data revealed that the Fourth of July ranked #1. [...] While July Fourth takes the number one spot for off-premise sales, the rankings look radically different when just the on-premise (away from home) sales are ranked. In these channels of retail sales, St. Patrick’s Day, the Super Bowl and Cinco De Mayo take top spots.

— National Beer Wholesalers Association (NBWA)

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Recipes

Wait! Whaaat? No watermelon on that list of foods for 4th of July? Come on, now!

Other than simply enjoying a delicious slice of watermelon, here are some other plant-based recipe suggestions for today:

• Butternut Squash & Beets Salad
  — Via Lucy Saunders from her cookbook, Dinner in the Beer Garden (Milwaukee Journal-Sentinal).
• Watermelon Tofu Salad
  — Via YFGF.
• The quintessential Spanish summertime chilled soup: gazpacho, 5 ways.
  — Via Voraciously (Washington Post).
• Grilled Tofu Barbecue
  — Via Vegan Dad.



• Carrot Hot Dogs
  — Via Kristen Pound.
• Beer is a vegan food stuff. Grill your vegetables with it.
  — Via YFGF.
• Twenty-seven '4th of July' vegan recipes.
  — Via Post Punk Kitchen (Isa Chandra Moskowitz).
• Twenty-four '4th of July' plant-based recipes.
  — Via Minimalist Baker.
• One-Bowl Vegan American Flag Cake.
  — Via Nora Cooks.

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In conclusion

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$328 Billion: U.S. beer industry's stake in American economy

The Beer Institute and the National Beer Wholesalers Association released their Beer Serves America economic report on the nation’s beer industry just ahead of Memorial Day, which marks one of the top beer-selling holidays of the year and the start of the summer beer-selling season. The study found the U.S. beer industry supports more than 2.1 million good-paying, local jobs in a wide range of industries, including farming, manufacturing, construction, and transportation in every community across the country.

— Beer Institute, 21 May 2019.

Key statistics

• The beer industry contributes $328.4 billion in economic output, which is equal to 1.6 percent of U.S. Gross Domestic Product.
• There are over seven thousand active breweries in the U.S.
• Brewers and beer importers directly employ nearly 70,000 Americans.
• There are over three thousand beer distributors in the U.S. The number of distributor jobs has increased by more than nineteen percent in the last decade, to nearly 141,600.
• Combined, brewers and distributors directly employ more than 200,000 Americans.
• Every job in a brewery supports another thirty-one jobs in other industries.
• Large and mid-sized brewers and beer importers provide about fifty-eight percent of brewing jobs.
• Suppliers to the brewing industry —enterprises that manufacture bottles and cans, cardboard case boxes, brewing equipment, marketing displays, etc.— generate nearly $102 billion in economic activity and are responsible for almost 436,650 jobs alone.
• Overall, the beer industry generates more than 2.1 million jobs.
• Beer produces $58.6 billion in tax revenues equal to nearly forty percent of the retail price paid for these products by consumers, comprising:
  • $46.3 billion in revenues to federal, state and local governments
  • $4.8 billion in federal and state excise taxes for consumption of beer
  • $6.6 billion in state sales taxes
  • $816 million in city and county excise taxes and other beer-specific local taxes.

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Growth of Beer Industry

Compare these 2018 data to those from, say, the 2014 Beer Serves America report:

• $253 billion in economic activity (1.5% of GDP).
• 1.75 million jobs.
• $48.5 billion in tax revenue.

In 2018, economic activity and jobs are up, while taxes collected are down. And yet, the beer industry —for whom the federal excise tax rate has not changed since 1976 (when it was went down!)— asks for a tax cut.

Just sayin.'

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What's 'craft' beer worth? Try $27.6 Billion.

This week, a plenitude of American 'craft' brewers are in Denver, Colorado, attending the Craft Brewers Conference/BrewExpo, the industry's annual confabulation, hosted and organized by the [U.S.] Brewers Association in different U.S. cities each year.

In conjunction with that, the BA has released its annual compilation of annual growth data for the U.S. 'craft' brewing industry. Such as:

In 2018, small and independent brewers collectively produced 25.9 million barrels and realized 4 percent total growth, increasing craft’s overall beer market share by volume to 13.2 percent.

Retail dollar value was estimated at $27.6 billion, representing 24.1 percent market share and 7 percent growth over 2017. Growth for small and independent brewers occurred in an overall down beer market, which dropped 1 percent by volume in 2018. The 50 fastest growing breweries delivered 10 percent of craft brewer growth. Craft brewers provided more than 150,000 jobs, an increase of 11 percent over 2017.
[...]

There were 7,346 craft breweries operating in 2018, including 4,521 microbreweries, 2,594 brewpubs, and 231 regional craft breweries. Throughout the year, there were 1,049 new brewery openings and 219 closings—a closing rate of 3 percent.
[...]

[These] numbers are preliminary. [...] A more extensive analysis will be released during the Craft Brewers Conference & BrewExpo America® in Denver, Colorado from April 8 – 11, 2019. The full 2018 industry analysis will be published in the May/June 2019 issue of The New Brewer, highlighting regional trends and production by individual breweries.

— [U.S.] Brewers Association
2 April 2019

And while I'm at it, here's the BA's super-duper definition of its member breweries, that is, its definition of what a 'craft' brewery is. Note, however, that the BA does not define what a 'craft' beer is.

An American craft brewer is a small and independent brewer.

• 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.
• Brewer:
  Has a TTB Brewer’s Notice [Federal license to brew beer commercially] and makes beer.
  
  

Trailer for the short, "For the Love of Craft," produced by [U.S.] Brewers Association founder Charlie Papaziaan. The film is to be premiered at the CBC.

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The 50 biggest breweries and craft breweries in the U.S.

On 12 March 2019, the [U.S.] Brewers Association released its annual lists of the top fifty biggest U.S. 'craft' beer companies and the top fifty biggest overall brewing companies in the U.S. ... both ranked based upon sales volumes.

The rankings do not mention the actual sales volume numbers. The BA will publish those in May 2019.

Taking a quick look ...

• The Nos. 1 through 4 'craft breweries are Yuengling, Sam Adams (Boston Beer), Sierra Nevada, and New Belgium.
• Nos. 1 through 4 overall largest are Anheuser-Busch, Inc. (When did the conglomerate drop the full Anheuser-Busch InBev name?), MillerCoors, Constellation (Corona, etc.), and Heineken (Lagunitas, etc.). On that list, the highest position for a [U.S.] Brewers Association-approved 'craft' brewery is 6th, for Yuengling.
• One Georgia 'craft' brewery is on the lists. SweetWater Brewing, of Atlanta, is at no. 14 on the 'craft' list and no. 23 overall. (YFGF is based in Georgia.)
• Keep in mind that the BA does not define 'craft' beer.It does, however, define its membership as 'craft' breweries.

  An American craft brewer is a small and independent brewer.

  • Small Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales). Beer production is attributed to a brewer according to rules of alternating proprietorships.
  • Independent Less than 25 percent of the craft brewery is owned or controlled (or equivalent economic interest) by a beverage alcohol industry member that is not itself a craft brewer.
  • Brewer Has a TTB Brewer’s Notice and makes beer.

  
  It's interesting to note that, in this iteration of its definition, the BA's decades-old requirement of "traditional" is no longer in the triad, instead replaced by the anodyne, "makes beer."

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A good fermentable is the only fermentable to have, when you're having more than one.

In 1972, John Scarne (SKAR nee) —recognized by many as one of the greatest card magicians ever— appeared in a Schaefer beer television ad.

Shaefer is the one beer to have when you're having more than one.
Shaefer's pleasure doesn't fade even when your thirst is done.
The most rewarding flavor in this man's world,
For people who are having fun,
Shaefer is the one beer to have when you're having more than one. *

Not speaking of magic (although, around that same time, a certain Thomas the Marvelous was known to practice the art) but speaking of beer: a good fermentable is the only fermentable to have, when you're having more than one —safely. If not Schaefer (in this man's world), that is.

So, from YFGF to all of you: Happy New Year in 2019.

Yours for good fermentables,
Thomas 'Tom' Cizauskas (chiz OW skuss)

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Today, don't forget to thank your local brewster!

Today, don't forget to thank your local brewster or brewer.

☞ According to the U.S. Bureau of Labor Statistics, more than 59,000 people work in breweries across the United States.

☞ The [U.S.] Brewers Association —using different methodology— finds 135,072 brewsters and brewers (and brewery and brewpub employees) working at the 6,372 "small and independent" breweries across the country.

☞ And, according to the Beer Institute —compiling data that include everyone associated with the U.S. brewing industry, directly and indirectly— the beer industry employs nearly 2.23 million Americans ...

... many of whom are working today, Labor Day, to provide your daily beer. Yeast never sleeps.

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How much beer do Americans consume during their Independence Day holiday?

A lot.

• According to the Nielsen Company, Americans purchased $648 million dollars of "domestic premium beer" and $248 million of 'craft' beer in "off-premise channels" (in non-jargon, that's "in stores") during the two weeks around the 2017 Fourth of July holiday (from 25 June through 8 July 2017).


• In fact, the four-week period surrounding Independence Day in accounted for 8% of the beer industry’s overall annual sales for 2017. It is unclear whether this figure includes package sales in independent shops and at breweries...and what Nielsen considers 'craft' to be. And the total amount of beer sold and drunk would be much higher if on-the-premises sales (aka restaurants, pubs, and breweries) are added in.


• According to WalletHub, Americans will spend $5.3 billion on food (partly for the 150 billion hot dogs they will purchase), $1 billion on beer, and $568 million on wine.


• The National Retail Federation has a higher figure. They forecast that Americans will spend $6.9 billion on food for the 4th (down from a record $7.1 billion in 2017).

I'll be trying to do my part. Happy Independence Day.

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Craft Beer Quick Books

Fun facts: a snapshot of the brewing and craft brewing business in the U.S. and globally.

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U.S. beer production & sales

• In 2016, the U.S. beer market totaled $107.6 billion dollars, 0.5% of the entire U.S. gross domestic product ($18.6 trillion).


• By volume in 2015, the U.S. beer industry sold 206.7 million barrels of beer – equivalent to more than 2.8 billion cases of 24-12 ounce servings.


• However, the overall U.S. beer market volume is expected to decline 1.5% this year.


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Craft beer production & sales

• In 2016, 'craft' beer accounted for $23.5 billion, 0.1% of U.S. GDP.


• But, if all related industries are included (retail, wholesalers, suppliers, etc.), the 'craft' brewing industry contributed $67.8 billion to the U.S. economy in 2016.


• 'Craft' beer sales growth is projected to be 8 or 9 percent this year, but that's below the 10 percent pace of 2016.


• 'Craft' beer's volume growth is forecast to be 5 to 6 percent, also below recent double-digit growth.


• This year, that translates to 1.5 million barrels more than in 2016.


• The peak year for 'craft' beer was 2014, when it added 3.3 million barrels.


• Most of the new volume growth for 'craft' this year will come from smaller breweries, not big-name 'craft' brands such as Boston Beer or Sierra Nevada. Larger brands are suffering from a perception of not being authentic 'craft.'


• Grocery chains are not adding total space this year for 'craft' brands.


• 'Craft' beer is forecast to represent about 12 percent of total beer volume this year, up slightly from 2016 levels.


• In 2017, homebrewers will have produced approximately 1.4 million barrels of beer, 1% of all beer produced in the U.S.


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Brewery & beer employment

• Directly and indirectly, the beer industry employs nearly 2.23 million Americans (including breweries, suppliers, wholesalers, retailers, and importers).


• In 2016, 'craft' breweries, themselves, employed 128,768.


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Total number of breweries

• Nearly 6,000 U.S. breweries are expected to be in operation by the end of this year, up from about 5,300 at the end of 2016. The vast majority of them will be 'craft'(small, independently-oned, and/or locally focused).


• In 1970, there were 4,000 breweries in the world. At the end of 2016, there were 20,000.


• The number of beer brands, worldwide (excluding one-offs), is close to 250,000.


• In 2016, worldwide 'craft' beer sales totaled $85 billion.


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Beer vs. wine & spirits?

• In 2016, consumer preference for beer increased from 42% to 43%, for wine decreased from 34% to 32%, and for spirits decreased from 21% to 20%. 36% of the population does not consume alcohol. (This is an interesting poll result from Gallup. Numerous other media are saying the opposite: that Americans are shifting away from beer to wine and spirits.)

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What's the economic impact of 'craft' beer in your state?

Small and independent American craft brewers contributed $67.8 billion to the U.S. economy in 2016. The figure is derived from the total impact of beer brewed by craft brewers as it moves through the three-tier system (breweries, wholesalers, and retailers), as well as all non-beer products like food and merchandise that brewpub restaurants and brewery taprooms sell. [...] The industry also provided more than 456,000 full-time equivalent jobs, with more than 128,000 jobs directly at breweries and brewpubs, including serving staff at brewpubs.

On Tuesday, the [U.S.] Brewers Association (BA) released the 2017 edition of its Economic Impact Report, a biennial analysis featuring the economic contribution of 'craft' brewing of all fifty states and the District of Columbia. It assembled those data (from 2016) in five categories, by state:

• Total Economic Contribution

  1. California $7.3 billion

  2. Pennsylvania $5.8 billion

  3. Texas $4.5 billion

  4. New York $3.4 billion

  5. Florida $3.1 billion
  [...]

  51. Rhode Island $152.3 million

• Economic Contribution, per capita

  1. Colorado $764.34

  2. Vermont $666.78

  3. Oregon $659.12

  4. Pennsylvania $615.77

  5. Montana $549.98
  [...]

  51. Mississippi $148.33

• Craft Jobs

  1. California 49,308

  2. Pennsylvania 39,841

  3. Texas 26,506

  4. Florida 23,077

  5. Colorado 22,220
  [...]

  51. Wyoming 1,108

• Craft Labor Contribution

  1. California $2.71 billion

  2. Pennsylvania $1.87 billion

  3. Texas $1.42 billion

  4. New York $1.31 billion

  5. $1.05 billion
  [...]

  51. Rhode Island $55.3 million

• Average Craft Wage

  1. Washington, D.C. $64,300

  2. New York $59,952

  3. Oklahoma $57,167

  4. California $55,019

  5. Connecticut $54,755
  [...]

  51. Mississippi $38,176

The BA offers two lists at its website —the top five states for economic contribution and the top five for per capita economic contribution— and the same on an interactive map. The remainder of the state data is available in a pdf table, with the states listed alphabetically. I spent a few minutes to enter the data into a spreadsheet, sorting by rank in each of the five categories. Here: the state rankings, by total economic impact.

Go here to see a larger view of the table. Click each of the links above to see the state data sorted by the other four categories.

California dominates —as would be expected by its size— in total economic contribution, craft jobs, average wage, and the economic contribution of those jobs. It falls out of the top five in per capita impact (to 27th), where the top spot is held by Colorado. Pennsylvania is also a powerhouse appearing in the top five for four of the five categories: economic contribution, per capita contribution, jobs, and labor contribution. In terms of a state's average craft beer wage, the best in the nation is Washington, D.C., offering its beer workers an average wage of $64,300. The worst in the U.S. is Mississippi, at $38,176.

According to the BA, the data for this Economic Impact Report is based on two national surveys it conducts: the annual Beer Industry Production Survey (BIPS) and the bi-annual Brewery Operations Benchmarking Survey (BOBS), as well as additional government and market data. The BA then entered the data into an IMPLAM software input-output analysis "in order to examine the broader ripples of craft brewers in the national and state economies." Breweries that did not fit the BA's criteria for 'craft' brewery were not included. In addition, the association excluded non-beer beverage alcohol products of craft breweries such as cider and flavored malt beverages (FMB), while including certain other non-beer products such as food at brewpubs.

Unlike the BA, the Beer Institute looks at the U.S. beer industry as a whole. Its most recent data show that the U.S. beer industry provided jobs to nearly 2.23 million Americans, contributed over $350 billion to America’s economy, and paid $63.5 billion in annual taxes. Brewers and importers directly employed 64,745 Americans. Suppliers to the brewing industry employed more than 491,800 Americans. Beer wholesalers directly employed more than 134,240 Americans. Beer retailers employed 915,700 Americans.

Comparing statistics produced by different methodologies can be problematic, but, nonetheless, the BA's Economic Impact Report shows that 'craft' beer stands well compared with the entire beer industry: contributing an economic impact of $67.8 billion produced via 456,000 full-time equivalent jobs. I'd say those are significant contributions.

Bart Watson is the chief economist for the BA, ultimately responsible for preparing this report. I'll leave it to him, and others smarter than me, to 'drill down' and offer more thorough analysis.

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Happy Labor Day!

The U.S. beer industry provides jobs to nearly 2.23 million Americans, contributes over $350 billion to America’s economy, and pays $63.5 billion in annual taxes.

• Brewers and importers directly employ 64,745 Americans.
• Suppliers to the brewing industry employ more than 491,800 Americans.
• Beer wholesalers directly employ more than 134,240 Americans.
• Beer retailers employ 915,700 Americans.

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And 'craft' beer?

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Labor Day

Of the Super Bowl, Thanksgiving, 4th of July, Christmas, Memorial Day, and Labor Day ... more beer is sold in the United States for Labor Day libations (off-the-premises, more than sixty million cases) than for any other holiday.

Yeast never sleeps. Your local brewster is probably hard at work today, doing her part. Support the American worker. Do your part. Drink a beer (or two). Honor Labor Day.

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The Beer Institute, the FDA, and transparency in beer labeling

The Beer Institute (BI) has come out in favor of the proposed U.S. Food & Drug Administration (FDA) rules on "Nutrition Labeling of Standard Menu Items in Restaurants and Similar Retail Food Establishments." Its argument is that

consumers should be provided with the highest standard of information for alcohol beverages on menus for chain restaurants and other similar dining establishments.

Keep in mind that the Beer Institute, while representing all U.S. breweries (as well as beer importers and beer industry suppliers) comprises—

• Anheuser-Busch InBev
  (including 10 Barrel, Blue Point, Breckinridge, Devils Backbone, Elysian, Four Peaks, Golden Road, Goose Island, Karbach, and Wicked Weed)
• Constellation Brands
  (including Ballast Point)
• Craft Brew Alliance
  (including Kona, Redhook, and Widmer)
• Heineken USA
  (including Lagunitas)
• MillerCoors
  (including Saint Archer and Terrapin)
• North American Breweries
  (including Genesee, Pyramid, and Magic Hat)

These company-members produce more than 81% of the volume of beer sold in the United States. Thus, buried deep within its letter to the FDA, the Beer Institute, by inference, makes common cause with its member Goliaths versus 'craft' brewery Davids.

Only very rarely, the BI supports disclosure of a single calorie reference for a category or group of beverages alcohol products, provided all products have the exact same nutritional values for each serving size provided to the consumer. This would only be acceptable in instances when this disclosure provides the consumer with the maximum amount of information. But we wish to reiterate our opposition to the use of a single, limited disclosure based on averages for all beer, wine, or drinks made with distilled spirits.

The large brewing companies and conglomerates which comprise the BI have the financial wherewithal to pay for lab analyses and label changes. Requiring smaller breweries to provide this information could be onerous: the cost of analysis for each and every beer could be beyond their means.

The FDA, showing small-business beneficence, however, will offer relief. If a specific type of wine, beer or distilled spirit offered for sale in a restaurant matches the description of the type of beer (wine or spirit) in the USDA database, that generic nutritional information can be used.

And the effect upon Mom & Pop, single-site, and small-chain restaurants? The mandate would apply only to restaurant chains with more than 20 locations. Appleby's has the cash. Businesses have until July 2018 (or July 2019 for businesses of less than $10 million in annual sales) to bring their Nutrition and Supplement Facts labels into compliance.

In light of the FDA regulations, it's interesting to recall that a quarter-of-a-century ago, in 1992, 'craft' beer pioneer Bert Grant voluntarily (others would say provocatively) put nutritional information on the label of his Grant's Scottish Ale. But, back then, the U.S. government told him to immediately cease and desist.

Going further, the Beer Institute, in 2016, created, what it called, the Brewers’ Voluntary Disclosure Initiative.

Participating breweries will voluntarily disclose

calories, carbohydrates, protein, fat, freshness dating; and alcohol by volume (ABV) on all labels in the form of a serving facts statement, and disclose ingredients in products on either the label or secondary packaging via a list of ingredients, a reference to a website or a QR code.

Again, easy for the big boys; difficult for the little guys. But you know what? As a beer consumer, I'd welcome transparency and honesty from the 'craft' breweries about their beers. Especially concerning the freshness of their beer or lack thereof. And make this declaration easy to see; easy to decipher. And I'd like to see that on both the can or bottle and on the carton.

I'd like to see that before I spend my $15 for a six-pack. (Kegs, too.)

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Pic(k) of the week: Brewers Walt Dickinson & Nathan Zeender (and ...)

Mixed fermentation of wild and sour beers was the topic of a discussion "between two [three] powerhouses of funk": *

• Walt Dickinson (l) —brewer/owner, Wicked Weed Brewing of Asheville, North Carolina;
• Michael Tonsmeire (c) —aka The Mad Fermentationist, award-winning homebrewer and mixed-fermentation researcher, author of American Sour Beers;
• Nathan Zeender (r) —brewer, Right Proper Brewing Company, of Washington, D.C.

Brewpub Right Proper hosted the seminar on 11 April 2017, during the week that the [U.S.] Brewers Association had travelled to Washington, D.C, to host its Craft Brewers Conference in Washington, D.C.

Almost one month later, to the day, Wicked Weed was purchased by Anheuser-Busch InBev. And many 'craft' drinkers (and brewers) cried foul. Did they believe that all that had been discussed that evening now had been transmuted into "alternative facts"?

A more thoughtful reaction was this from a brewer, said recently to me over beers: "It makes me sad."

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U.S. hops looking good for 2017.

For the second year in a row, U.S. hop stocks were up in March over a year earlier, an indication that hop supply has caught up with demand. That and other U.S. hops industry statistics for 2015 through 2017, as published in Capital Press (21 March 2017):

• U.S. hop growers, dealers, and brewers had 140 million pounds on hand as of 1 March 2017, as compared to 128 million at the same time in 2016, for an increase of 9 percent, according to a report by USDA National Agricultural Statistics Service. (Compare to March 2015, when hop stocks were down 2 percent from March 2014. In September 2016, pre-harvest stocks were up 2 percent from the year before and the September before they were down 8 percent.)


• A few specialty varieties still may be undersupplied, according to Ann George, executive director of Hop Growers of America and the Washington Hop Commission.


• In 2016, a record 50,857 acres of hops were harvested — mostly in Washington, Oregon, and Idaho. The production value was estimated at a record $498 million and volume was the second largest ever, at 87.1 million pounds.


• The expansion of small, 'craft' breweries has fueled the demand for more aroma hop varieties, according to Ms. George.


• The average price per pound reached $5.72 in 2016, up from $4.38 in 2015, driven by more high-value aroma varieties.


• Prices for the 2017 crop will be slightly higher than in 2016, according to Pete Mahony, director of supply chain management and purchasing for Yakima hop grower/processor John I. Haas.


• Because the 2017 crop is essentially entirely contracted under multi-year agreements pricing is still reflective of the peak of the market but will start to drop in 2018 and according to Mr. Mahoney.


• U.S. hops acreage increased 17 percent in 2016 (and production increased 11 percent). 4,000 new acres expected to be reported this year, according to Mahoney.


• A full sixty-four percent of total U.S. hop production was exported in 2016.

Now, we wait on nature and weather.

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[U.S.] Brewers Association Releases 2016 Statistics for 'Craft' Breweries

“The era of 18% growth rates is probably over.” ¹

It's 6%.

Hot off the presses (or email distribution lists)! The [U.S.] Brewers Association —"the trade association representing small and independent American craft brewers"— has released its 2016 data for 'craft' breweries and, by extension, the product they produce, commonly called 'craft' beer. ²

The data show that the state of American 'craft' breweries —although not as good as it has been in the past— is still good.

Boulder, CO • March 28, 2017—The Brewers Association (BA)——today released 2016 data on U.S. craft brewing growth ³. With over 5,300 breweries operating during the year, small and independent craft brewers represent 12.3 percent market share by volume of the overall beer industry.

In 2016, craft brewers produced 24.6 million barrels ⁴, and saw a 6 percent rise in volume on a comparable base ⁵ and a 10 percent increase in retail dollar value. Retail dollar value was estimated at $23.5 billion, representing 21.9 percent market share. By adding 1.4 million barrels, craft brewer growth outpaced the 1.2 million barrels lost from the craft segment, based on purchases by large brewing companies. Microbreweries and brewpubs delivered 90 percent of the craft brewer growth.

“Small and independent brewers are operating in a new brewing reality still filled with opportunity, but within a much more competitive landscape,” said Bart Watson, chief economist, Brewers Association. “As the overall beer market remains static and the large global brewers lose volume, their strategy has been to focus on acquiring craft brewers. This has been a catalyst for slower growth for small and independent brewers and endangered consumer access to certain brands. Small and independent brewers were able to fill in the barrels lost to acquisitions and show steady growth but at a rate more reflective of today’s industry dynamics. The average brewer is getting smaller and growth is more diffuse within the craft category, with producers at the tail helping to drive growth for the overall segment.”

Additionally, in 2016 the number of operating breweries in the U.S. grew 16.6 percent, totaling 5,301 breweries, broken down as follows: 3,132 microbreweries, 1,916 brewpubs, 186 regional craft breweries and 67 large or otherwise non-craft brewers. Small and independent breweries account for 99 percent of the breweries in operation. Throughout the year, there were 826 new brewery openings and only 97 closings. Combined with already existing and established breweries and brewpubs, craft brewers provided nearly 129,000 jobs, an increase of almost 7,000 from the previous year.⁶

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The fruit of the labor of brewers

These facts and figures are from last year, but you'll get the idea. On Labor Day, enjoy a beer produced for you by American laborers, or as you might call them, brewers.

• Overall, the beer industry contributes about $252.6 billion in economic output which is equal to about 1.5 percent of the U.S. Gross Domestic Product.
• Brewers and beer importers directly employ 49,576 Americans. More than 70 percent of brewing jobs are linked to large and mid-sized brewers and beer importers.
• The number of distributor jobs has increased by more than 20 percent in the last decade, to more than 131,307, according to the U.S. Department of Labor.
• Suppliers to the brewing industry – enterprises that manufacture bottles and cans, cardboard case boxes, brewing equipment or marketing displays, for example – generate more than $83 billion in economic activity and are responsible for more than 383,190 jobs alone.
• More than $48.5 billion in tax revenue is generated by the production and sale of beer and other malt beverages. This is equal to nearly 40 percent of the retail price paid for beer by consumers.

Beer Serves America

Beer Institute

July 2015.

According to the [U.S.] Brewers Association, "small and independent American craft breweries" create more than 424,000 jobs, with more than 115,000 jobs directly at breweries and brewpubs, including serving staff at brewpubs. All put, the 'craft' brewing industry contributes $55.7 billion to the U.S. economy. * Obviously, different metrics than those of the Beer Institute.

And what of that second 'tier' of the beer business, the wholesalers —the drivers who get up at 4 in the morning to get you your beer— much maligned in the 'craft' beer ambit?

• The beer distribution industry directly employs 135,000 people in the United States.
• When the impacts of distributor operations, capital investment and community involvement are considered, the total number of impact jobs exceeds 338,000.
• Beer distributors contribute a total of $70 billion in economic impact across the U.S.
• Beer distributor activities contribute nearly $13 billion to the federal, state and local tax bases. This does not include the nearly $11 billion in federal, state and local alcohol excise and consumption taxes.
• The beer distribution industry contributes more than $23 billion in transportation efficiencies for the beer industry each year.
• Beer distributor activities result in nearly $178 million in economic impacts to communities through support of charities, local events and economic development.

America’s Beer Distributors: Fueling Jobs, Generating Economic Growth & Delivering Value to Local Communities

National Beer Wholesalers of America (NBWA)

2015.

According to Nielsen, more beer is sold in the United States during the Labor Day holiday than during any other holiday of the year.† Thank you brewsters, brewers. et al.!

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