Dollar growth up 15% in first six months of 2011; U.S. sees rapid growth in breweries in planning

Boulder, CO – The Brewers Association, the trade association representing the majority of U.S. brewing companies, has released strong mid-year numbers for America’s small and independent craft brewers¹. Dollar sales were up 15 percent in the first half of 2011, excluding brewers who left the craft segment in 2010². Volume of craft brewed beer sold grew 14 percent for the first six months in 2011, compared to 9 percent growth in the first half of 2010.

Barrels sold by craft brewers for the first half of the year are an estimated 5.1 million barrels. Despite many challenges, the mid-year numbers show signs of continued growth for craft breweries. The industry currently provides an estimated 100,000 jobs, contributing significantly to the U.S. economy.

“Craft brewers continue to innovate and brew beers of excellent quality,” noted Paul Gatza, director of the Brewers Association. “America’s beer drinkers are rapidly switching to craft because of the variety of flavors they are discovering. And they are connecting with small and independent craft brewers as companies they choose to support.”

The U.S. now boasts 1,790 breweries—an increase of 165 additional breweries since June 2010. The Brewers Association also tracks breweries in planning as an indicator of potential new entrants into the craft category, and lists 725 breweries in planning today compared to 389 a year ago. Additionally, the count of craft brewers was at 1,740 as of June 30, 2011.

“There is a growing interest in establishing new breweries,” Gatza added. “It seems like every day we are hearing about a brewery in planning. Will they all make it? No, but many will if they produce high-quality, interesting craft beers and can get them to market through self-distribution and beer wholesalers and beer retailers.”

In just over a week, the Brewers Association will host SAVOR, their annual beer and food pairing event at the National Building Museum in Washington D.C. For those fortunate enough to have already purchased tickets to the incredible sold out two-day event, they will have the privilege to try the collaboration beer from Samuel Adams and Dogfish Head Craft Brewery called SAVOR Flowers. It will only be available to attendees of the event who will each receive a cork and caged 750ml bottle of the special brew to bring home with them and it will be available to sample at the event as well.

Both Sam Adams and Dogfish Head have continuously pushed the envelope of what beer could be and they have steered away what beer should be and I am so excited to have received a bottle of this and I can’t wait to try it. As we know, beer is made from four main ingredients – yeast, hops, barley, and water – and all but one, water, have been messed around with to create new and exciting beers. For SAVOR Flowers, they have decided to change this. Through an age-old distillation process, they created rosewater which would serve as the base liquid of the beer and this in turn inspired them to continue exploring the use of flowers and eventually dried lavender, hibiscus, jasmine and rosebuds would be introduced into the brewing process to create SAVOR Flowers. Also to be used would be a new hop breed simply known as #369 that is known for its intense floral notes which Jim Koch would acquire 30 pounds of from Yakima, Washington.

The beer would then be aged in Barrel One, the same bourbon barrel Jim used to age the premier batch of the first “extreme beer”, Samuel Adams Triple Bock in 1993. According to Sam Adams, Barrel One is the first barrel originally used for spirits which was then used to age beer and for the last 18 years it has been filled with Samuel Adams Triple Bock.

According to Jim Koch of Samuel Adams, “Sam and I had a great time gathering these ingredients, and I am excited to collaborate with such an innovative brewer on this beer for SAVOR. Sam’s originality and imagination are endless – he came up with the creative idea of distilling rosewater for this brew. We share the same intense passion for pushing the conventional definition of what beer can be and we put that same passion into our beers.”

Sam Calagione of Dogfish Head continues, “Jim is the godfather of craft beer, and he’s got unbelievable ideas about what beer can be, along with the knowledge and palate to make those crazy beer dreams come true. I am with him on his philosophy and thrilled to be working together on this groundbreaking brew. We share a commitment to elevating beer to its proper infinite height, as both a beverage and a pairing for food.”

Yesterday marked the beginning of American Craft Beer Week 2011 put on by the Brewers Association, the national non-profit organization that represents the interests of small and independent craft brewers in America. May 16-22 will be an exciting week for America’s small and independent craft brewers and consumers alike as beer drinkers across the United States can look forward to events and festivals put on by their favorite breweries, and that’s cool for sure, but did you know that Colbert Nation has pumped this thing up on the past? Oh yes, this is the real deal, so real, in fact, that the House of Representatives has pumped it up with House Resolution 1297, recognizing ACBW as being the real deal.

Basically what House Resolution 1297 means is that the members of House like to enjoy some damn fine beer. The resolution praises beer all throughout and is written in almost a Gonzo style, saying stuff like, “Whereas American craft brewers promote the Nation’s spirit of independence through a renaissance in hand-crafted beers like those first brought to colonial shores by Europeans settlers and produced here by the Nation’s founding fathers, including George Washington and Thomas Jefferson for the enjoyment of the citizenry.”

You know what else the citizenry is into? Mutineer Magazine. That’s right. I said it. Now figure out what’s happening in your area with American Craft Beer Week and drink some good beer, subscribe to Mutineer Magazine, and watch your karma go through the roof.

Reps. Jim Gerlach (L) and Richard Neal (R) introduced the Small BREW Act

Boulder, CO • March 30, 2011— Brewers Association (BA) announced today that legislation seeking to enact a graduated beer excise tax rate of $3.50 and $16.00 for America’s small brewers has been introduced in both chambers of Congress. The BA is the not-for-profit trade group that represents the majority of U.S. brewing companies.

The Senate bill, S. 534, was introduced on March 9 by U.S. Senators John Kerry (D-Mass.) and Mike Crapo (R-Idaho). Joining Senators Kerry and Crapo were 17 of their Senate colleagues who signed on as original co-sponsors.

S. 534 mirrors the provisions contained in last session’s S. 3339 which gained the support of 28 U.S. Senators. Specifically, S. 534 would reduce the small brewer tax rate on the first 60,000 barrels by 50 percent (from $7.00 to $3.50/barrel) and institute a new rate of $16.00 per barrel on beer production above 60,000 barrels up to 2 million barrels. Breweries with an annual production of 6 million barrels or less would qualify for these tax rates.

“Small brewers have been growing and creating jobs ever since the craft beer revolution began,” said Senator Kerry. “Today there are over 40 small breweries in Massachusetts and 1,700 across the country, and this bill will help ensure that these small businesses keep people on the payroll and create jobs even during tight economic times.”

The Small Brewer Reinvestment and Expanding Workforce Act (Small BREW Act), H.R. 1236, was introduced by Representatives Jim Gerlach (R-Pa.) and Richard E. Neal (D-Mass.) on March 29. Joining them as original co-sponsors are Representatives Earl Blumenauer (D-Ore.), Peter A. DeFazio (D-Ore.), Duncan D. Hunter (R-Calif.) and Erik Paulsen (R-Minn.). Several of these Representatives are members of the House Ways and Means Committee. Like its Senate counterpart, the House’s Small BREW Act would enact a graduated beer excise tax rate of $3.50 and $16.00.

“With the economy sputtering, Congress must create conditions that allow small businesses to become more competitive, protect existing jobs and create new employment opportunities,” Representative Gerlach said.

“Small craft brewers are growing, creating jobs and contributing in small and big ways to the recovery of the American economy,” said Charlie Papazian, president, Brewers Association. “The bipartisan effort by Congressmen Gerlach and Neal is a strong message most Americans will raise a toast to and is indicative of the grassroots community spirit with which Americans are embracing to work towards economic recovery and sustain it for the future.”

Papazian added, “The 1,700+ small American breweries account for about five percent of all the beer enjoyed in the United States and 50 percent of brewery jobs. The bipartisan support the Small BREW Act engenders will help assure a positive impact on agricultural, manufacturing, hospitality and distribution jobs for the future.”

Boulder, CO • March 21, 2011—The Brewers Association, the trade association representing the majority of U.S. brewing companies, today released 2010 data on the U.S. craft brewing industry. Small and independent craft brewers1 saw volume2 increase 11 percent and retail sales dollars increase 12 percent over 2009, representing a growth of over 1 million barrels (31 gallons per U.S. barrel), equal to more than 14 million new craft cases.

“Beer lovers increased their appreciation for American craft brewers and their beers in 2010,” said Paul Gatza, director, Brewers Association. “Craft brewers’ stories resonate with Americans who are choosing small, independent companies making delicious beers in more than 100 different styles.”

The Association also reported a growth in the number of U.S. breweries, with eight percent more breweries than the previous year. In 2010, there were 1,759 operating breweries. Craft brewers produced 9,951,956 barrels, up from an adjusted3 8,934,446 barrels in 2009.

“Prohibition caused a dramatic decline in the number of breweries in the United States, but the number of breweries is now at an all-time high,” added Gatza. “With well over 100 new brewery openings in 2010, plus 618 breweries in planning stages, all signs point to continued growth for the industry.”

In 2010, craft brewers represented 4.9 percent of volume and 7.6 percent of retail dollars of the total U.S. beer category. The Brewers Association estimates the actual dollar sales figure from craft brewers in 2010 was $7.6 billion, up from $7 billion in 2009.

Overall, the U.S. beer industry represented an estimated retail dollar value of $101 billion. U.S. beer sales were down approximately one percent, or 2 million barrels, in 2010 compared to being down 2.2 percent in 2009. Total beer industry barrels dropped to 203.6 million, down from 205.7 million barrels in 2009. Imports were up five percent in 2010, compared to being down 9.8 percent in 2009. (Note: the Brewers Association does not count flavored malt beverages as beer.)

Gatza added, “We also found that three percent of craft brewer barrels, by volume, are distributed in cans, confirming a growing trend.”

The Board provides strategic direction for the Brewers Association. With 37 full-time employees and additional independent contract staff, the Brewers Association serves 1,634 Brewery Members, 223 Wholesalers, 348 Allied Trade Members and 25,000+ American Homebrewers Association Members. Continue Reading »

The 2011 Craft Brewers Conference put on by the Brewers Association is less than a month away and breweries, bottle shops, and beer bars/restaurants are getting their events for the conference finalized as the American craft brewing community prepares to descend upon San Francisco. We at Mutineer are happy to announce the events that our friends at Deschutes Brewery will be holding and judging by the events we attended of theirs during the Great American Beer Festival, these will be off the charts.

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WHAT: Collaboration Beer Dinner and Pairing at The Monk’s Kettle
Deschutes Brewery Chef Matt Neltner and Monk’s Kettle Chef Adam Dulye collaborate to deliver a menu made for beer. The special menu, from which anyone visiting the restaurant can order, takes the expertise of these two chefs to create food and beer pairings that will kick of the week just right. On tap will be a large variety of Deschutes beers including: The Abyss 2010, The Abyss 2009, Black Butte XXI, Hop Henge Experimental IPA, Red Chair NWPA, Mirror Mirror, Jubel 2010, Mirror Pond Pale Ale and Green Lakes Organic Ale. Visitors will also have a chance to discuss the beers and brewing processes with Deschutes Brewery brewer Robin Johnson.
                               
WHEN: Tuesday, March 22, 6-9pm

WHERE: The Monk’s Kettle
3141 16th Street, San Francisco, CA 94103
415.865.9523

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WHAT: Black Butte XXII California Debut at The Republic
Join us for a very rare appearance of last year’s coveted Black Butte XXII, which never released to the public. What we can tell you is that this imperial bourbon-aged version of our popular Black Butte Porter, brewed in 2010 with chilies, dark chocolate and orange peel, is well worth a taste during its California debut. You may be familiar with Black Butte XX and XXI which were released to celebrate the Brewery’s past anniversaries, but because XXII was not available outside of our brew pubs, most have not had the pleasure of tasting this spectacular beer.
                               
WHEN: Wednesday, March 23, 8pm-close

WHERE: The Republic
3213 Scott Street
San Francisco, CA 94123-2605

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WHAT: Specialty Beer Tasting at the Toronado 8pm-close
Join no less than FOUR Deschutes brewers for some beer and sausage….a pairing that could only be made in, well, San Francisco. Deschutes Brewery, the Toronado and Rosamunde Sausage Grill are teaming up for an evening of pairing pleasure. Rosamunde will be grilling up some of their best to wash down with a bit of any of the following beers: The Abyss, The Dissident, Mirror Mirror, Nitro The Abyss, Hop Henge Experimental IPA, Red Chair NWPA, Green Lakes Organic Ale and Mirror Pond Pale Ale.

WHEN: Thursday March 24, 8pm-close

WHERE: The Toronado
547 Haight Street
San Francisco, CA 94117

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WHAT: Specialty Beer Tasting at City Beer Store
There’s nothing quite like a small space that’s completely packed with beer of all kinds, from all over the world. What better atmosphere to enjoy some fine Deschutes brews and conversation with a Deschutes brewer? We’ll be serving up some small appetizers to bring out the flavors of the beer as we host a casual beer tasting evening for the Friday night crowd in the city by the Bay. We will be bringing down some favorites and specials such as The Abyss, Jubel 2010, Mirror Mirror, Hop Henge Experimental IPA and Red Chair NWPA. Meet our brewmaster, Larry Sidor, along with three other Deschutes brewers as they discuss this wide variety of beers.
         
WHEN: Friday March 25, 6pm–close

WHERE: City Beer Store
1168 Folsom St # 101
San Francisco, CA Continue Reading »

There have been a lot of changes made by the Brewers Association this year. At the beginning of the year, the BA announced changes they made to their designation of “small” in its definition of a “craft brewer” and just recently, the BA announced changes made to the Great American Beer Festival in that they’ve expanded their competition to include U.S. Territories. What was once strictly limited to the 50 states of the U.S., breweries located in the unincorporated, organized U.S. Territories of Guam, Northern Mariana Islands, Puerto Rico and U.S. Virgin Islands will now be eligible to enter the GABF.

I think this is great and hopefully it will encourage brewers in those areas to step up and make a name for themselves. I’ll be watching closely and I can’t wait until one of them brings home a medal!