Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the...

Craft BrewersSustaining Excellence and Growth

Brewers Association is…

Government Affairs

• In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act

• Brewers that produce less than 2 million barrels annually (virtually all BA members):• Will be taxed at a rate of $3.50/barrel on

the first 60,000 barrels of beer produced

• And $16/barrel on any further barrels produced up to 6 million barrels

• (Above 6 million barrels, the excise tax remains $18/ barrel).

Craft Beverage Modernization and Tax Relief Act

• Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales).

An American craft brewer is small, independent, and traditional.

Craft Brewer Definition

Small

Independent• Less than 25% 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.

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.

These are historic beer times!

• 1978 = 42 brewing companies

• 2017 = 6,000+

• Tens of thousands of beer labels

• United States = the most diverse beer market

The U.S. Craft Beer Market

Big Picture

• Growth in a competitive market

• Growth in a crowded marketplace• 2 openings a day• Large brewer

acquisitions• Crowded distribution

• Small still healthy• Still growth out there

Domestic Imports Craft US Shipments

All figures in ‘000s of bbls (1 bbl = 31 gallons)

1981 177,000 5,221 35 182,290

2016 144,500 33,366 25,200 207,100

Change -28,500 28,145 25,165 24,810

0

1000

2000

3000

4000

5000

6000

7000

2012 2013 2014 2015 2016 2017

Number of Active Breweries, 2012-2017(est.)

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000Bonded U.S. Wineries, 1993-2017

Where are all the U.S. breweries?

Red = MicroBlue = Brewpub

Sales

• Craft brewers up 5% by volume at mid-year. Up 8-10% in retail dollar sales.

• (Includes on-premise and at the brewery sales)

• For full year 2017, Total beer is down -1% in volume / up 1% in dollar sales in IRI.

2017 Dollar Share & GrowthIndependent Craft

Source: IRI Group

$ Sales Share Growth RateIPA 28.2% 17.5%SEASONAL 11.8% -6.0%OTHER PALE LAGERS

11.5% 9.1%

PALE ALE 8.9% 8.9%VARIETY 7.2% 1.3%AMBER ALE 4.2% -8.4%GOLDEN ALES 3.7% 40.6%

• States with above average craft share (2015), 2016 growth = 1.9%

• States with below average craft share (2015), 2016 growth = 7.7%

Key Issues

What We Want

• Fair access to market for all U.S. breweries

• Taprooms• No one brewery owner should become

the “one stop shop” for beer• “Consumer choice, not producer

power, should determine what beers go on the truck.” - Senator Klobuchar (MN)

• Continued growth and demand for our members beers.

Choice

Quality• Breweries that are driven by

quality, with a safe work environment who are sustainability minded and who advance beer.

2.315 2.748 8.400 18.125 24.355

33.366 53.500

92.600

425.000

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

450.000

*Boston Beer Co. *Yuengling Heineken USA Constellation *Small &Independent

Imports Molson Coors AB InBev U.S. AB InBev Global

2016 Barrels: U.S. Beer(000's of bbls)

*Included in S&I Total

BrewersAssociation.org/seal#IndependentBeer

Independent Craft Brewer Seal

BrewersAssociation.org/seal#IndependentBeer

Independent Craft Brewer Seal

• Many beer drinkers want to know who makes their beer

• 81% of craft beer appreciators indicated “independent” and “independently owned” as the most recognized terms presented in a 2017 Nielsen/Brewbound Harris Poll

• Tool for enthusiasts to easily differentiate beer from craft brewers and beer produced by other, non-craft companies

Adoption

Purpose

• 2,872 breweries have adopted the seal, as of January 16, 2018

Take Craft Back

Anthem

Research Grants

• 2015: $150,000• 2016: $380,000• 2017: $730,000• 2018: $915,000 (budgeted)

Funding

Best Practices Guide to Quality Beer

Brewers Association Staff

Questions?

Bob Peasebob@brewersassociation.org

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