E-Malt.com News article: USA, IA: Iowa’s craft beer industry is rising

Iowans’ thirst for craft beer – especially among younger drinkers - has brewed up more than $100 million in economic activity for the state, according to findings of a study prepared for the Iowa Wine and Beer Promotion Board.

Mike Lipsman, Harvey Siegelman and Dan Otto of the Strategic Economics Group conducted research indicating the economic impact of Iowa’s craft beer industry topped $100.2 million in 2014, generated 1,520 jobs and increased personal income by nearly $42 million, mostly for food and drinking establishments, breweries and retail businesses.

“The craft beer industry is one of Iowa’s emerging manufacturing segments,” Megan McKay, a member of the Iowa Wine and Beer Promotion Board, said in a statement included in the study’s release by the state Economic Development Authority on June 18.

“Craft beer drinkers represent a wide range of ages and interests, meaning the industry will continue to grow, enhancing the state’s economy and making jobs for our residents,” McKay said.

According to the study, beer production by Iowa’s craft breweries and brew pubs is projected to increase from the 2014 level of 40,786 barrels to more than 146,000 barrels by 2019. Also, the in-state consumption of craft beer can be expected to increase over the same period from 33,446 barrels to 120,000 barrels – growth that should increase Iowa’s craft beer market share to 5 percent from 1.2 percent currently.

Iowa’s first craft brewery - Millstream, located in Amana - opened for business in 1985. Since then, 69 breweries and brewpubs have opened, but 15 closed, leaving 54 operating in 2014.

According to researchers, the growth spurt since 2009 owes major credit to a law change that allowed craft breweries to begin producing high-alcohol content (more than 5 percent alcohol) beer. The number of breweries has doubled since 2009 to more than 50 in 29 counties across the state.

In Iowa, last year’s craft beer production equalled 40,786 barrels with 33,446 barrels sold in that state and the remaining 18 percent sold outside Iowa.

Five Iowa breweries – Backpocket, Millstream, Toppling Goliath, Peace Tree, and Confluence – accounted for 57.5 percent of the state’s total craft beer production, while about 60 percent of the craft breweries produced fewer than 500 barrels each during 2014, researchers said. Except for four brewpubs, Iowa’s breweries and brewpubs are locally owned, according to the Strategic Economics Group study findings.

Market research indicates the highest percentage of craft-beer consumers is among those aged 25-34. The SEG study noted Iowa craft beer consumers include both professional and blue-collar workers and that there is a symbiotic relationship between craft beer and the popularity of bicycling in Iowa.


24 June, 2015