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VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingAn Update from the USA

Chuck SkypeckTechnical Brewing Projects ManagerBrewers Associationchuck@brewersassociation.org

Agenda

• Who is the Brewers Association?

• USA Market Trends• USA Craft Market

Trends• USA Craft Styles

Who is theBrewers Association?The Brewers Association is an organization of brewers, for brewers and by brewers. • Over 3,500 U.S. brewery members• 46,000 members of the American

Homebrewers Association• Over 1,000 allied trade, beer

wholesalers, retailers, individuals, other associate members

Brewers Association Purpose• To promote and protect American

craft brewers, their beers and the community of brewing enthusiasts.

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingUSA Market Trends

Premiumization in the beer business

• The high end of the beer industry isthe dominant driver of growth.

• Analysts are predicting that the highend of the market will control morethan 50% of the market by the end ofthe 2020’s.

• Craft is the leading segment of the highend and is poised to capitalize on theseismic shift in market preference.

Craft 22%

Imports13%

Domestic(various)17%

Light Beer48%

1970 2014 2022 (projected)

99% 82%

15%

34%

46%52%

24%

40%61%

4%

12%

13%

11%3%3%

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingUSA Market Trends

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingUSA Craft Market Trends

Growth trends - The craft brewing industry has seen incredible growth in the past decade:

• 12% average annualized growth for ten years.

• 15.0% category growth from 2010-2013.

• Domestic sales growth of 17.2% by volume in 2013.

Craft in 2015Volume:

– 13%  increase in volume– 12.2 total volume share – 24.5 billion barrels total 

volumeDollars

– 16% increase in dollar value

– 21% total dollar value share

– $22.3 billion total value

8

Hot Topics in Craft BrewingUSA Craft Market Trends

4893 total operating breweries4820 operating craft breweries

Hot Topics in Craft BrewingUSA Craft Market Trends

4893 total operating breweries4820 operating craft breweries

Hot Topics in Craft BrewingUSA Craft Market Trends

4893 total operating breweries4820 operating craft breweries

Hot Topics in Craft BrewingUSA Craft Market Trends

2016 midyear production projections• 8% growth • % growth slowing as the 

base grows

4893 total operating breweries4820 operating craft breweries

Hot Topics in Craft BrewingUSA Craft Market Trends

2016 production projections• 7% growth • % growth slowing as the 

base grows• Slower growth with more 

breweries means fewer opportunities for growth

4893 total operating breweries4820 operating craft breweries

Hot Topics in Craft BrewingUSA Craft Market Trends

2016 growth rates ‐ projections• Off premise: +6.1%• On‐premise: ‐2.0%• Premise use: +62.1%• Other Brewery sales: +40.0%• Export: +11.1%

4893 total operating breweries4820 operating craft breweries

Hot Topics in Craft BrewingUSA Craft Market Trends

2016 growth rates ‐ projections

• Premise use: +62.1%• Other Brewery sales: +40.0%

“Long Tail”

Hot Topics in Craft BrewingUSA Craft Market Trends

Craft      BeHow important is “local” in purchase decisions?

Hot Topics in Craft BrewingUSA Craft Market Trends

Oregon Craft Brewers are OutsellingNon‐Oregon Craft Brewers in Dollar Sales

Source: IRI InfoScan IRI Oregon State ‐ FOOD Quad Weeks Jan 27, 2013 through July 12, 2015

Hot Topics in Craft BrewingUSA Craft Market Trends

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingAn Update from the USA

Craft Styles

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingAn Update from the USA

Craft Styles

IPA!

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingAn Update from the USA

In 2015, IPA gained four share points, and now accounts for one‐quarter (25%) of total craft dollar off‐premise sales

Diversity within the IPA style• American – 64.9% of craft IPA sales• Imperial – 20.4%• Session – 6.9%• English – 2.8%• Belgian‐White ‐ 2.7%• Fruit / Veggie / Spiced – 3.5%• Black – 0.5%• Other – 0.4%

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingAn Update from the USA

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingAn Update from the USA

Session and Fruit / Veggie / Spiced IPA’s continued to be among the fastest growing IPA sub‐styles in terms of new brand offerings

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingAn Update from the USA

Rounding out the top ten craft styles2 – Seasonal – 19.0%3 – Variety – 10.3%4 – Belgian‐style Wit – 8.1%5 – Pale Ale – 7.2%6 – Amber Ale – 4.0%7 – Amber Lager – 3.8%8 ‐ Fruit / Veggie / Spiced – 3.5%9  ‐Wheat Beer – 2.9%10 – Golden Ales – 2.1%

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingAn Update from the USA

On the HorizonSour styles, such as Berliner 

Weiss, Gose and American Wild Ale, are rapidly gaining favor with brewers and consumers

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingAn Update from the USA

Craft CansTotal Craft Cans gained +3.5 share points and now account for an 11.4% share of Total 

Craft Dollar Sales. 

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

The growth of craft brewing in the U.S. has:

• Created 121,843 small brewing jobs• Craft beer has affected supply chain dynamics

VLB 5th EuropeanMicroBrew Symposium

07.Nov 2016

Boutique Brews, Barley, and the Balance Sheet ‐Structural changes in malt barley industrial use require an updated forecasting approachJennifer K. Bond, PhD Economist, Crops Branch Markets and Trade Economics Division USDA/ERS 

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

VLB 5th EuropeanMicroBrew Symposium

07.Nov 2016

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

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