E-Malt.com News article: 2453

The U.S. craft beer industry saw a 3.4 % growth in production in 2003, according to figures gathered and released by the Association of Brewers on April 5. Craft beer, often referred to as “microbrews,” celebrates its 34th year of consecutive growth. “2003 was a difficult year for the beer industry, but it was another solid year for craft breweries,” comments Paul Gatza, director of the Association of Brewers. “Overall consumption was down, and import’s growth rate of 1.9 % was the lowest figure for import growth in 12 years. What this means is that craft beers are increasingly making headway in the areas of market share and consumer enjoyment.”

Industry trends identified by the Association of Brewers include more brewery openings (81) than closings (73), several microbreweries becoming regional in size and distribution, brewpubs (restaurants with breweries) starting bottling or canning lines, brewpub operators opening second and third locations, a shift in sales toward off-premise locations and a 10 percent growth among regional specialty brewers.

The 3.4 percent growth rate in 2003 parallels the 3.4 percent growth rate posted by the craft beer industry in 2002. “One difference,“ Gatza says, “is the 2003 growth rate occurred in a year when the overall beer market in the U.S. declined due to extreme weather, a sluggish economy and war concerns. The fact that the craft beer industry grew at a greater rate than imports for the first time since 1996 shows a shift in the choices being made by the American consumer.”

In 2003, the craft beer industry produced 6,653,461 million barrels of craft beer in the United States. This 3.4 percent growth from 2002 means the net volume increase for 2003 was 220,714 barrels. (One barrel = 31 US gallons or 13.78 cases of 24 12-ounce bottles)). This is the equivalent to over 3 million cases of new craft beer sales. The total U.S. craft beer industry annual retail sales value for 2003 was over $3.5 billion.

The Association of Brewers reports 1,426 craft breweries operated in the United States in 2003: 986 brewpubs, 385 microbreweries and 55 regional specialty breweries (Complete definitions of these segments are included at the end of the press release).

The U.S. craft beer industry, as defined by the Association of Brewers, consists of four distinct production segments: brewpubs, microbrewers, regional specialty breweries and contract brewing companies.

The 2003 market share of the craft beer market breaks down into: regional specialty breweries 66.2 percent; contract breweries 14.2 %; microbreweries 10.4 percent; brewpubs capturing the remaining 9.2 %.

The Association of Brewers is an educational and trade association for the U.S. craft beer industry and has been gathering the most accurate craft beer industry statistics since the industry’s emergence in 1980. For 34 years, the craft beer industry has shown growth every year. Growth is measured by the number of barrels of beer U.S. breweries produced in 2003. A craft beer is one made with traditional methods and 100 % malt as a fermentation source.

The Association of Brewers gathered production data, brewery openings and closings and transition data from more than 1,000 craft breweries, which represents 86 % of the craft beer industry’s total volume. The remaining 14 % of the unreported data was extrapolated using 2002 data, first-hand knowledge and extensive research. This is a year-round effort and comprises hundreds of phone interviews, faxes and emails.

Craft Beers are generally, “all-malt,” domestic beers produced using 100 % malted barley. Craft beers that are not all-malt sometimes substitute a percentage of malted wheat (for wheat beers) or malted rye (for rye beers). Their inspiration can be traced to British, German or Belgian traditions or is often uniquely American. Craft beers range from pale to dark in color and from mild to strong in alcohol content. Sometimes they include unusual ingredients such as fruit, herbs or spices. Compared with other beers, their emphasis is more on flavor, and less on appealing to a mass market. (The best-selling American beers are brewed using 30 to 40 % rice or corn “adjunct,” resulting in a paler, lighter-bodied and lighter-flavored beer).

Craft Brewer is a brewpub, microbrewery, regional specialty brewery or contract brewing company whose majority of sales is considered craft beer.


06 April, 2004