Dollar Sales Up 11 Percent for First Half of 2008
Boulder, CO • July 28, 2008 – The Brewers Association, the trade association representing the majority of U.S. brewing companies, reports beer sales from American craft brewers¹ (see 2007 Craft Beer Industry Statistics) continue to grow despite a softening economy and challenges with raw materials supply and pricing. Craft beer dollar sales during the first half of 2008 increased 11% compared to this same period in 2007. The Brewers Association attributes this growth to a grassroots movement toward fuller flavored, small batch beers made by independent craft brewers.
According to The Nielsen Company, beer sales are affected the least by the economic downturn, with wine sales showing the most impact. Additionally, craft beer is gaining customers from across all segments of beverage alcohol.
"Newer brands by the larger brewers, like Belgian style wheat beers, have huge distribution advantages over beers by independent craft brewers," said Paul Gatza, Director of the Brewers Association. "These brands can grow when the large brewers decide they want them to grow with the ability to impact what brands get shelf space and tap handles. At the same time, beer from craft brewers is being requested by the customer, which encourages distributors and retailers to make the beer available." According to the Brewers Association, 1,420 of the 1,463 U.S. breweries are independent craft brewers.
The Brewers Association reports that in the first half of 2008 volume of beer sold by craft brewers grew by 6.5% totaling an estimated 4 million barrels of beer compared to 3.768 million barrels sold in the first half of 2007. Harry Schuhmacher of Beer Business Daily stated, "Crafts have really taken pricing this year given high input costs, and yet it is still driving volume gains faster than the beer category."
¹ The definition of a craft brewer as stated by the Brewers Association: An American craft brewer is small, independent, and traditional. Small: Annual production of beer less than 2 million barrels. Beer production is attributed to a brewer according to the rules of alternating proprietorships. Flavored malt beverages are not considered beer for purposes of this definition. Independent: Less than 25% of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage industry member who is not themselves a craft brewer. Traditional: A brewer who has either an all malt flagship (the beer which represents the greatest volume among that brewers brands) or has at least 50% of its volume in either all malt beers or in beers which use adjuncts to enhance rather than lighten flavor.