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Brewers Association hits on quality as main objective (along with 20 percent market share) #CBC2014

April 9, 2014Chris Crowell

Once again, the major news from the Craft Brewers Conference & BrewExpo America is industry growth. The number of breweries, brewing facilities and breweries-in-planning are up, as are the industry sales and market share data. But with great growth comes great responsibility, and the Brewers Association (BA) made it a point to mention the importance of quality several times throughout the opening session and following press conference.

Brewers Association hits on quality as main objective.jpg

Paul Gatza, BA Director, made the point that if the newer brewers riding the craft beer momentum are pushing sub-par beers into the marketplace, that they could unintentionally start to halt that momentum. Craft beer is gaining steam in part because of the consumer’s interest in quality, and if the new supply matching that demand can’t live up to that consistent quality, the industry overall could feel the effects.

“If a lot of newer brewers are not focusing on quality that reflects on the overall community,” Gatza said. “Sending beer samples to a lab, or counting bacteria in beer… these are the things new brewers are just not doing. We need to get more science behind the art.”

That was the main message. Onto the numbers and other association news from the conference:

The numbers

BA economist Bart Watson relayed the following stats:


  • The craft brewing industry in 2013 hit 15.6 million bbls, which was an 18 percent increase.
  • In overall beer market, craft beer now has 7.8 percent of the market (more on this number later).
  • In retail dollar value, craft is now at $14.3 billion out of $100 billion beer market — which is a 14.3 percent share of the market. The $14.3 billion is a 20 percent growth over the previous year.
  • The BA counted 2,768 breweries in 2013.
  • Micro breweries passed brewpubs for the first time in the total count.
  • The BA counted 2,866 brewing facilities in 2013, and of those 99 percent are craft breweries.
  • There are 1,898 breweries in planning.
  • The BA’s economic impact study in 2013 showed about 110,000 craft brewing industry jobs. Many of these are manufacturing jobs, which is a nice nugget for the BA to mention when talking to lawmakers.

Speaking of lawmakers…

Spent-grain. The BA was on top of the controversial spent-grain rule written by the Food and Drug Administration. As we reported previously, the FDA is now reviewing and revising the language of that rulemaking, in no small part to the 2,100 comments it received during the open comment period.

Gatza said that when the FDA emerges again with revised language, there will be a second round of comments. So, the regulator is listening to the industry, and the BA is hopeful that a sensible outcome will be reached after this process has concluded.

Excise tax. The BA remains hopeful about the passage of federal excise tax legislation. The House version of the bill has the bipartisan support of 156 co-sponsors, and the Senate version has 40 co-sponsors.

Guilds update. News broke today that Wyoming now has a state guild, which completes the map. All 50 states have a craft brewer’s guild now.

Revised craft beer definition. The BA also discussed its updated craft brewer definition, which we also reported on previously. The big bit of confusion the BA’s board of directors cleared up with the revised rule concerns the use of adjuncts in brewing. Gatza said it himself, “Is it right to say that a brewery that’s been in business since the 1800s isn’t traditional?” The board’s change finally answers that with a resounding “No.”

Future outlook

20 percent market share. The BA mentioned its stated long-term industry goal of hitting 20 percent beer market share by 2020. It’s definitely a lofty goal, and whether this was intentional or not (the BA execs said it was not) the altered craft brewer definition will provide a market share boost when Yuengling and a few others are factored into the stats.

Here again, a 20 percent market share by 2020 would be a huge hop leaf in the cap of the craft brewing industry, but how the industry gets there remains a concern for the BA, in terms of quality, as stated earlier, but also in the creation pipeline — making sure there is enough raw materials and technical brewing research for brewers.

The BA is also focused on the quality component on the retail end of the equation. There’s already been a lot done here to educate retailers about cleaning keg lines, etc., but the BA has added a retailer membership option and is looking to engage that group even more going forward with a retailer version of its draft beer quality manual.

Exports. Another tool in the industry growth tool belt is the BA’s Export Development Program. This program is funded in part by the U.S. Dept. of Agriculture to the tune of $600,000 in 2014, which is its biggest contribution since the start of this program in 2004. Essentially, the BA uses the program to facilitate the best matches it can between craft brewery, international distributor and overseas market. The program funding also goes to ‘reverse trade missions,’ which are basically marketing promotions of U.S. craft beer with the media and decision makers in other countries. There are 82 BA members in the Export Program (which requires an additional fee to join).

The latest returns aren’t a huge part of the whole (at 282,500 bbls), but international interest is certainly increasing. 2013 saw exports grow by 49 percent, with the top markets being Canada, Sweden, the United Kingdom, Australia and Japan.

And as these other countries take a page from the U.S. craft brewing book and start to produce innovative beer, the BA is making its Best Practices Guide to Quality Craft Beer available in multiple languages so that the highest standards of (say it with me) quality will be maintained across the globe.

spent grain regulation
FDA backtracks on spent grain rule after brewing industry comments
brewery revenue by day of the week
Let’s look back at the year in craft beer with the Brewers Association
Brewers Association exports edp-growth-2018
American craft beer exports surpass $125 million, Canada accounting for 51.3% (UK 7.4%)
American craft beer exports top $116 million (CBB starts slow clap)

Reader Interactions

Comments

  1. LoxtonLager says

    April 13, 2014 at 10:07 pm

    It’s all about quality! @BeerBrewin: USA Brewers Assn. – quality main objective (more important than craft image) http://t.co/CXnVYpD8WE

    Log in to Reply
  2. nycraftmalt says

    April 13, 2014 at 10:07 pm

    RT @BeerBrewin: Brewers Association hits on quality as main objective (along with 20 percent market share) #CBC2014 http://t.co/5x5ZuaG81Y

    Log in to Reply
  3. veniceduck says

    April 13, 2014 at 3:54 pm

    RT @BeerBrewin: Brewers Association hits on quality as main objective (along with 20 percent market share) #CBC2014 http://t.co/5x5ZuaG81Y

    Log in to Reply
  4. TheDza says

    April 13, 2014 at 1:24 pm

    RT @BeerBrewin: Brewers Association hits on quality as main objective (along with 20 percent market share) #CBC2014 http://t.co/KkOyZOCxMt

    Log in to Reply
  5. BeerBrewin says

    April 13, 2014 at 1:12 pm

    Brewers Association hits on quality as main objective (along with 20 percent market share) #CBC2014 http://t.co/5x5ZuaG81Y

    Log in to Reply
  6. bhschulte says

    April 11, 2014 at 1:52 pm

    RT @craftastrategy: @BrewersAssoc 20 by 20 mission http://t.co/uZWpgGKxHO
    10,000 breweries #Craftbeer
    We agree!
    Read how & why http://t.co/…

    Log in to Reply
  7. CASWilde says

    April 11, 2014 at 1:37 pm

    RT @craftastrategy: @BrewersAssoc 20 by 20 mission http://t.co/uZWpgGKxHO
    10,000 breweries #Craftbeer
    We agree!
    Read how & why http://t.co/…

    Log in to Reply
  8. CityTavernCC says

    April 11, 2014 at 12:52 pm

    Brewers Association hits on quality as main objective (along with 20 percent market share) #CBC2014 http://t.co/mixxkvYavn

    Log in to Reply
  9. samholloway_pdx says

    April 11, 2014 at 12:08 pm

    RT @craftastrategy: @BrewersAssoc 20 by 20 mission http://t.co/uZWpgGKxHO
    10,000 breweries #Craftbeer
    We agree!
    Read how & why http://t.co/…

    Log in to Reply
  10. craftastrategy says

    April 11, 2014 at 11:53 am

    @BrewersAssoc 20 by 20 mission http://t.co/uZWpgGKxHO
    10,000 breweries #Craftbeer
    We agree!
    Read how & why http://t.co/4iUYjsqZJm
    #CBC2014

    Log in to Reply
  11. coasterfactory says

    April 11, 2014 at 11:37 am

    Brewers Association hits on quality as main objective (along with 20 percent market share) – Craft Brewing Business http://t.co/1fvLYSjFRV

    Log in to Reply
  12. PHBrewingCo says

    April 11, 2014 at 9:43 am

    RT @sodakbeer: Brewers Assoc. hits on quality as main objective (along with 20% market share) #CBC2014 – Craft Brewing Business http://t.co…

    Log in to Reply
  13. sodakbeer says

    April 11, 2014 at 9:22 am

    Brewers Assoc. hits on quality as main objective (along with 20% market share) #CBC2014 – Craft Brewing Business http://t.co/yIZY9zyF4R

    Log in to Reply
  14. davewhite4 says

    April 11, 2014 at 3:53 am

    RT @beerwars: The numbers don’t lie: http://t.co/jlLeehKSm7

    Log in to Reply
  15. Brewery Insurance Program says

    April 10, 2014 at 11:38 pm

    Brewery Insurance Program liked this on Facebook.

    Log in to Reply
  16. BeerWarsMovie says

    April 10, 2014 at 10:12 pm

    The numbers don’t lie: http://t.co/lJcsC5YutH

    Log in to Reply
  17. beerwars says

    April 10, 2014 at 10:12 pm

    The numbers don’t lie: http://t.co/jlLeehKSm7

    Log in to Reply
  18. BeerAlien says

    April 10, 2014 at 2:11 pm

    Lots of good news, numbers and goals from the CBC yesterday.
    http://t.co/Kal8780xJZ

    Log in to Reply
  19. BrewandCovered says

    April 10, 2014 at 10:28 am

    20% market share by 2020?? Great goal for Craft Beer, but we need to make sure the quality of beer stays consistent! http://t.co/eLJzcNmm0P

    Log in to Reply
  20. SCBrewers says

    April 10, 2014 at 8:41 am

    RT @beerofsc: A nice recap of yesterday at @BrewersAssoc #CBC2014 by @CraftBrewingBiz: http://t.co/0OlpTilKRG #craftbeer

    Log in to Reply
  21. SoCalBeerBiz says

    April 10, 2014 at 8:40 am

    [email protected] hits on quality as main objective (along with 20% market share) http://t.co/vfAltNXsv7 #CBC2014 via @CraftBrewingBiz

    Log in to Reply
  22. beerofsc says

    April 10, 2014 at 8:02 am

    A nice recap of yesterday at @BrewersAssoc #CBC2014 by @CraftBrewingBiz: http://t.co/0OlpTilKRG #craftbeer

    Log in to Reply
  23. Oak Park Brewing Company says

    April 10, 2014 at 3:23 am

    Oak Park Brewing Company liked this on Facebook.

    Log in to Reply
  24. gusmerbeer says

    April 10, 2014 at 12:19 am

    RT @CraftBrewingBiz: [email protected] hits on quality as main objective (along with 20 percent market share) #CBC2014 http://t.co/2F1ehVF0hT

    Log in to Reply
  25. thebeerace says

    April 9, 2014 at 8:44 pm

    Brewers Association hits on quality as main objective (along with 20 percent market share)… http://t.co/INJAiDgOLX

    Log in to Reply
  26. Bite and Booze says

    April 9, 2014 at 6:07 pm

    Sounds good to me.

    Log in to Reply
  27. BoulderBeerBrad says

    April 9, 2014 at 6:04 pm

    RT @CraftBrewingBiz: [email protected] hits on quality as main objective (along with 20 percent market share) #CBC2014 http://t.co/2F1ehVF0hT

    Log in to Reply

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