USA, AL: Gadsden's Back Forty Beer Company starts exports to China

Gadsden's Back Forty Beer Company has joined a growing trend of small American craft breweries moving to export their products overseas, Birmingham Business Journal reported on June 28.

On June 27, Back Forty sent 1,500 cases bound for China out the door. Back Forty recently completed a $2 million expansion that has nearly doubled the company's production volume to roughly 25,000 barrels a year. The shipment to China is the result of those recent internal equipment expansions.

"The basis of that expansion alone was export development," Back Forty COO Tripp Collins said. "We've been doing business in Canada for the past three years, but it hasn't been a substantial amount of volume. We ended up finding the right partner and send those cases out the door today."

Collins' company isn't alone in its desire to place products in international markets. According to the Brewers Association, a Boulder, Colo.-based nonprofit trade group, the American craft beer export industry grew by more than 16 percent in 2015 - a growth spurt equating to 446,151 barrels worth roughly $116 million. Exports in 2014 approached the $100 million mark.

China is one of the most attractive markets for brewers as the world's largest beer consumer. The Chinese beer market in 2013 was worth about $1.15 million. Experts predict the market could reach the $5 million mark by the end of next year.

"As other markets continue to expand in the U.S., the craft beer bubble is requiring us to diversify," Collins said. "This is just one opportunity we saw in the past couple years. We’re also looking at other parts of Asia, Caribbean and South America as well."

And for Back Forty, the recent shipment was not a one time deal.

"We have another container lined up for July," Collins said. We hope to continue a once a month or every other month shipment. We’ve got a few other items in the fire, so one of those could take off, too."

03 July, 2016