VLB 5th European MicroBrewSymposium European... · VLB 5th European MicroBrewSymposium 07.Nov 2016...

VLB 5th EuropeanMicroBrew Symposium07.Nov 2016

Hot Topics in Craft BrewingAn Update from the USA

Chuck SkypeckTechnical Brewing Projects ManagerBrewers [email protected]

Agenda

• Who is the Brewers Association?

• USA Market Trends• USA Craft Market

Trends• USA Craft Styles

Who is theBrewers Association?The Brewers Association is an organization of brewers, for brewers and by brewers. • Over 3,500 U.S. brewery members• 46,000 members of the American

Homebrewers Association• Over 1,000 allied trade, beer

wholesalers, retailers, individuals, other associate members

Brewers Association Purpose• To promote and protect American

craft brewers, their beers and the community of brewing enthusiasts.


Hot Topics in Craft BrewingUSA Market Trends

Premiumization in the beer business

• The high end of the beer industry isthe dominant driver of growth.

• Analysts are predicting that the highend of the market will control morethan 50% of the market by the end ofthe 2020’s.

• Craft is the leading segment of the highend and is poised to capitalize on theseismic shift in market preference.

Craft 22%

Imports13%

Domestic(various)17%

Light Beer48%

1970 2014 2022 (projected)

99% 82%

15%

34%

46%52%

24%

40%61%

4%

12%

13%

11%3%3%


Hot Topics in Craft BrewingUSA Market Trends


Hot Topics in Craft BrewingUSA Craft Market Trends

Growth trends - The craft brewing industry has seen incredible growth in the past decade:

• 12% average annualized growth for ten years.

• 15.0% category growth from 2010-2013.

• Domestic sales growth of 17.2% by volume in 2013.

Craft in 2015Volume:

– 13% increase in volume– 12.2 total volume share – 24.5 billion barrels total

volumeDollars

– 16% increase in dollar value

– 21% total dollar value share

– $22.3 billion total value

8


4893 total operating breweries4820 operating craft breweries




2016 midyear production projections• 8% growth • % growth slowing as the

base grows



2016 production projections• 7% growth • % growth slowing as the

base grows• Slower growth with more

breweries means fewer opportunities for growth



2016 growth rates ‐ projections• Off premise: +6.1%• On‐premise: ‐2.0%• Premise use: +62.1%• Other Brewery sales: +40.0%• Export: +11.1%



2016 growth rates ‐ projections

• Premise use: +62.1%• Other Brewery sales: +40.0%

“Long Tail”


Craft BeHow important is “local” in purchase decisions?


Oregon Craft Brewers are OutsellingNon‐Oregon Craft Brewers in Dollar Sales

Source: IRI InfoScan IRI Oregon State ‐ FOOD Quad Weeks Jan 27, 2013 through July 12, 2015



Craft Styles



Craft Styles

IPA!



In 2015, IPA gained four share points, and now accounts for one‐quarter (25%) of total craft dollar off‐premise sales

Diversity within the IPA style• American – 64.9% of craft IPA sales• Imperial – 20.4%• Session – 6.9%• English – 2.8%• Belgian‐White ‐ 2.7%• Fruit / Veggie / Spiced – 3.5%• Black – 0.5%• Other – 0.4%





Session and Fruit / Veggie / Spiced IPA’s continued to be among the fastest growing IPA sub‐styles in terms of new brand offerings



Rounding out the top ten craft styles2 – Seasonal – 19.0%3 – Variety – 10.3%4 – Belgian‐style Wit – 8.1%5 – Pale Ale – 7.2%6 – Amber Ale – 4.0%7 – Amber Lager – 3.8%8 ‐ Fruit / Veggie / Spiced – 3.5%9 ‐Wheat Beer – 2.9%10 – Golden Ales – 2.1%



On the HorizonSour styles, such as Berliner

Weiss, Gose and American Wild Ale, are rapidly gaining favor with brewers and consumers



Craft CansTotal Craft Cans gained +3.5 share points and now account for an 11.4% share of Total

Craft Dollar Sales.


The growth of craft brewing in the U.S. has:

• Created 121,843 small brewing jobs• Craft beer has affected supply chain dynamics

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VLB 5th EuropeanMicroBrew Symposium

07.Nov 2016

VLB 5th European MicroBrewSymposium European... · VLB 5th European MicroBrewSymposium 07.Nov 2016...

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