Puerto Rico: Beer production decreases in Puerto Rico

Despite the sustained growth of the Puerto Rico craft beer market in recent years, production has been declining compared to previous years, and the experience points to the same trend for the end of this year, The Weekly Journal reported on December 11.

According to the Barth Haas annual report, in 2022 (most recent data) Puerto Rico ranked 102nd internationally, with a production of 1,082 hectolitres of beer, equivalent to 898 barrels, a drop of five steps compared to 2021, when it ranked 97th, with 1,117 hectolitres of production.

"The level of production in Puerto Rico had gone up, but this year there was a decrease, compared to the previous two years," William "Ricky" Quintana, content creator for the RickyCraftBier page on Instagram dedicated to educating about Puerto Rican craft beer, explained to The News Journal.

However, he reported that the decline in 2022 is a trend that has occurred in several countries.

"In the United States, I know there has been a lot of consolidation of breweries. Also because of the economic part there has been a decrease in young people who are becoming interested in beers versus other beverages. Although I don't have precise data in Puerto Rico, talking to people in the industry, they understand that this factor is also having an impact here. There are young people who are very focused on the nutritional aspects and see beer perhaps as something that is less attractive. In fact, not just for beers, there has been a little less interest in alcohol in general and production has dropped a little because of that," the industry enthusiast explained.

He also said that by 2023 the numbers are expected to reflect a decline, according to the behavior that the industry has been experiencing.

"From what I have seen of this year's preliminary data, we see the same trend, that is, it is going down, and in the United States the Brewers Association report has already reported that craft beer production this year is below last year," said Quintana.

Despite this, in terms of exports, the trade value was $679,000, which represents an increase of 177% compared to 2021, when the trade value of exported beer was $245,000, according to data from the Observatory of Economic Complexity.

Meanwhile, in terms of imports, Puerto Rico imported a commercial value equivalent to $63.7 million, which represented a 7.7% reduction compared to 2021.

"What is important and interesting about these data, is that if the local craft beer market captures 16% of those imports, this represents $10 million that stays in our economy and would be reinvested in Puerto Rico," Quintana explained.

This is because some local breweries have adapted to the 'contract brewing' model in the United States, in which they produce beer there and then import it to the island canned.

According to Reina Mora Brewing Co. owner Carlos Ayala, this could also be a factor that could have influenced the reduction of production on the island.

He explained that one of the reasons for this is because the raw material to make the product already comes from the United States, making it more cost-effective to bring it fully brewed to the island.

Despite the increase in exports, the data does not include craft beer, since currently none of the brands on the island take their product outside the island.

"Most of the 23 breweries are small breweries. We are talking about maybe three or four breweries that have enough volume, and that perhaps could have the opportunity to export something," he explained, but he maintained that at the moment it is not viable," the brewer explained.

Although exporting is not a possibility at the moment, he did report that they have explored the possibility of taking their products to places such as the airport, so that even if it is not exported, it can be taken by tourists outside Puerto Rico.

When asked how he would categorize the industry's performance for the year, he expressed that the reception has been positive and more people have become educated about craft brewing.

"One thing I've seen increasing is that there is a lot of planning. That is, people are planning to include craft beer, whether for private event or general public event, for which it would not normally be an option before," Ayala said.

On the other hand, he reported that restaurants have become interested in having their own beer, which has become an area of opportunity for local breweries to increase their production.

For his part, Quintana explained that, despite the growth of the craft beer sector on the island, many of them are still not profitable and it is urgent to promote the local product for its sustainability.

"If we manage to attract more customers who are interested in craft beer and stop sponsoring perhaps a little bit of what comes from abroad and buy what comes from here, then they will benefit and promote more economic development," he said.

12 December, 2023