Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: http://read.dmtmag.com/i/346136
24 Beverage Dynamics • July/August 2014 www.beveragedynamics.com Crafting Profi ts across the U.S., and contributed 103,000 barrels to those 2.3 mil- lion new barrels. For new consumers, brewpubs have been a powerful point of fi rst contact with craft beer culture. As they are restaurants, not bars, brewpubs can attract customers new to craft beer who may come for a meal and then discover the beer. At the same time, with their gen- erally small brewing systems, brewpubs have been innovators, able to take greater risks with new recipes and novel ingredients than larger operations for whom an experimental brew represents a much larger commitment. Brewpubs are nimble, because they can "think small." On the downside, a brewpub faces the same challenges as any other restaurant, and many fail for reasons completely unrelated to their beer. The microbrewery category is the most diverse of the three craft categories: they are distributing breweries (as opposed to restau- rant-breweries) that can range in size from so-called nano-brew- eries, producing a minuscule amount, up to substantial production facilities with wide distribution, producing up to 15,000 barrels per year (the defi nitional limit set by the BA). The smallest of these companies have been just as important as brewpubs in the role of beer-style incubators, for the same reason: smaller equipment and smaller batches mean less risk tied to experimentation. In 2013, microbreweries passed brewpubs in number for the fi rst time, with 1,412 such companies in operation (a 23% increase), add- ing 486,000 barrels to the annual growth in volume. One reason for their growing business appeal may be expanded sources of revenue, as microbreweries offer onsite-service in their own taprooms and tasting rooms. Where the law allows it, this can turn the brewery into a destination for its fans. Add food trucks or cooperating local restaurants to the mix, and a microbrewery can offer the amenities of a brewpub, without the headache of running a kitchen. However, these beer-only taprooms are not as likely to attract novice craft drinkers; microbreweries win new converts through dis- tribution, their original function. Retailers — including supermarket chains and big box stores once thought too centralized in their buy- ing to accommodate highly local products — now realize that local beers are a signifi cant draw in the beer aisles. On-premise, craft leads the combined beer sales of Anheuser Busch and MillerCoors, partic- ularly in draft sales, according to data from GuestSciences. And the most appealing tap selection includes both reliable national brands and local micro offerings. THE BIGGER GUYS Those breweries that pass the 15,000 barrel limit graduate into the group of 119 the BA refers to as regional breweries (though, for many, that "region" is most or all of the U.S.). These companies were responsible for adding 1.73 million barrels in 2013, or three-quar- ters of the growth in craft beer volume. It is these largest compa- nies whose beers customers will encounter most frequently — Sam Adams Boston Lager in Costco, Sierra Nevada Pale Ale on tap in air- port bars, or New Belgium's Fat Tire in the convenience store cooler. Regionals are the companies leading the volume growth, and are most infl uential in moving public taste. Almost by defi nition, they are older, more stable companies: many were established in the 1980s, including Boston Beer, Sierra Nevada, Bell's, Anderson Valley The nationally distributed Sam Adams remains the largest craft beer label, and the company continually pushes forward with new brews, such as its Seasonal Summer Ale, its limited edition Porch Rocker and one of its latest releases, Rebel West Coast Style IPA. Colorado-based New Belgian Brewing has grown into a signifi cant craft beer player, offering a wide range of styles including (clockwise from top left) its popular Fat Tire Amber Ale; its Hoptober Golden Ale, La Folie, its recent entry into the sour beer segment; Rampant Imperial IPA; Mothership Wit Organic Wheat Beer and Ranger India Pale Ale.