A Trend? Washington State Proposes Legislation to Lower BAC to 0.05
In a trend that may be picking up momentum across the country, Washington state legislators are considering a bill that would lower the blood alcohol limit from 0.08 to 0.05.
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Opinion and commentary relating to the alcohol beverage industry
What Does 2023 Hold for Hard Seltzer
Hard seltzer exploded out the gate. Sales grew triple digits in both 2019 and 2020, driven by evolving consumer trends and tastes. Many in the industry predicted a slower, but still robust growth in 2021 of 50-80%. Instead, hard seltzers grew by only 16% in 2021.
Asahi Shuzo to Open Sake Brewery in US – Will It Give Sake a Boost?
Japan’s Asahi Shuzo announced plans to open a new $53 million sake plant in New York state. The facility, located in Hyde Park, will begin brewing sake in spring of 2023.
BA Discontinues SAVOR Event
The Brewers Association released a brief announcement saying that the organization would no longer be holding the annual food and craft beer tasting event SAVOR.
Will the ‘Paradox of Choice’ Require Craft Beer to Simplify?
A long-running study of Americans’ attitudes, values and purchasing behavior has shown that a new consumer trend may be emerging: a newfound desire for simplicity and simplified choices. This may not bode well for the craft beer segment, and some industry analysists are pointing to it as a root cause for the sluggish performance of craft beer coming out of the pandemic.
Non and Low Alcohol Category Shows Big Gains in 2022 – Growth Expected to Continue
Driven by increasing consumer demand, no-alcohol and low-alcohol beer, cider, wine, spirits, and ready-to-drink (RTD) products grew by more than +7% in volume across 10 key global markets in 2022, according to a comprehensive new study published by IWSR Drinks Market Analysis. The category is expected to increase by a third by 2026, spearheaded by growth of non-alcohol products.
BA Releases ‘Year in Beer 2022’ Report with Mixed Signs of Recovery
The Brewers Association today released their “Year in Beer 2022” report, a look back at a year “marked by overall growth but lots of variation.” While there were 200+ breweries that closed during the year, over 550 new breweries have opened, adding to the over 9,000 already operating. But the report also identified a number of challenges for craft brewers in the year ahead, indicating that the headwinds are far from over.
RTD Prices Increase in Those States Where Taxes Are Lowered
Makers of RTD’s have been increasingly active in lobbying state legislators to lower taxes on the ready to drink cocktails. Their argument is that lower taxes will benefit the consumer by lowering the retail price.
But a recent analysis by Public Sector Consultants shows that in two states where the RTD tax was lowered, retail prices increased.
How the Economy and Consumer Habits will Impact the Beer Industry
In a rough and tumble economy, with ballooning inflation and fears of a looming recession, one of the most important indicators of where the beer industry might be headed is how beer drinkers feel about the economy, as measured by the Consumer Sentiment index published regularly by the University of Michigan. According to an analysis by beverage industry consulting firm First Key, this metric is highly predictive of certain beer-buying behaviors, and it’s currently at its lowest level since it was first measured in 1952.
First Key goes on to say that “what may be surprising to many is that falling consumer sentiment may actually be good for beer sales – although bad for beer’s price mix.”
A New Trend in Craft Brewing? Lost Abbey Announces Bold Move to ‘Grow Down’
The Lost Abbey, considered to be one of the best American producers of barrel-aged Belgian-style sour ales is making an unusual pivot in a rapidly changing and challenging beer industry: they are ‘growing down.’
The announcement from the San Diego county brewery, which is part of the Port Brewing and Pizza Port collection, came in a detailed story from San Diego Beer News in which Tomme Arthur, Co-Founder and Chief Operating Owner of Lost Abby said the company would be putting its 30-barrel brewhouse and fermentation tanks up for sale so that they can switch over to a smaller brewing setup with single- and double-batch flexibility as well as a cellar fit for their current and projected output.
The evolution from big to smaller is a noble one. In good times and in hard times, most companies try to cut costs and grow efficiencies by selling more. Growth has traditionally been the secret sauce to success. But in an industry that has never quite followed all of the traditional rules of business, maybe craft brewers will find that growing down is more fun – and more profitable, than growing up.
Beer Sales in Canada Down 7.3% So Far This Year Versus 2021. Here’s Why
Total beer sales in Canada have dropped 7.3 per cent compared to last year, according to a report by Beer Canada.
The drop in sales has been attributed to a variety of reasons.
Standing Stone and Counterbalance Brewing for Sale
The ‘For Sale’ sign went up on two West Coast breweries as the number of breweries for sale seems to be on the rise.
What’s behind the uptick in breweries going up for sale? “A combination of a maturing craft beer market, increased competition on the shelf from both beer and non-beer alcohol, the effects of the COVID-19 pandemic, and a generation of craft brewery founders reaching retirement age,” wrote beer industry reporter Kate Bernot in a recent BrewsNews article.
Standing Stone Brewing in Ashland, Oregon closed in May and it was recently announced that the brewery is up for sale as a turnkey operation. The brewery, which has been in business for 25 years and is located in the downtown area of Ashland includes a full-service restaurant and 10 bbl brewing system.
UK Adds 200 New Breweries in Last Year – Total Now at 2,246
New brewery opening in the UK have continued even during the pandemic with 200 new brewery openings in the last 12 months ending March 31st. The tally racks up a 9.1% growth in operating breweries with a current total of 2,426.
The growth in new breweries is down versus a 17.7% growth rate during the same period in 2019/20, but given the conditions of the marketplace and business climate during the lingering pandemic, the uptick is encouraging and would suggest that more breweries will be opening over the next year.
See the full story here.
Smuttynose Closes Dover Satellite Location Smuttlabs
Smuttynose Brewery in Hampton, NH has closed their Dover satellite location called Smuttlabs.
The company opened the satellite location in November 2019 to highlight their experimental beers and tavern fare. The company attributed the closure to the onset of COVID shortly after opening, fluctuations in the labor market and rising costs.
“While we are disappointed to say goodbye to the Smuttlabs brand, we are thrilled to extend positions at our Hampton campus to all Smuttlabs staff. Their talents will be put to great use as our company continues to grow with both brewery production and hospitality endeavors,” the company said in a statement.
The Crystal Ball – What Will the Craft Brewing Industry Look Like in 10 Years
Learning from the past is important, but anticipating the future can help set the course going forward. Here at ProBrewer News we offer up different perspectives from industry experts as they arise.
Maria Pearman, Beverage Practice Leader for GHJ is an expert in the beverage alcohol industry and takes a look into some changes we may expect in the craft brewing industry over the next 10 years, and what adjustments need to be made to allow beer to thrive.
In what has been for decades the beer, wine and spirits industry — is now an alcohol beverage industry blended together that includes products we never would have thought of 20 years ago. And as the economy shifts, consumer preferences evolve and the regulatory environment changes, the next 10 years will certainly look very different from today.
Washington Brewers Sue Oregon to Allow DTC and Self-Distribution in High Stakes Case
In what could be a pivotal and landmark court case, three brewers in Washington state have filed a lawsuit against the state of Oregon seeking to ship beer directly to consumers (DTC) and self-distribute to retailers in Oregon.
The three breweries filing the suit are Mirage in Seattle, Vancouver-based Fortside Brewing Co. and Garden Path Fermentation in Burlington.
The well-known “Granholm decision” (Granholm v. Heald, 544 U.S. 460), in 2005, was a court case decided by the US Supreme Court which ruled that laws in New York and Michigan that permitted in-state wineries to ship wine directly to consumers but prohibited out-of-state wineries from doing the same were unconstitutional.
Stone Fallout – The Why and How of the Brewery that Would ‘Never Sell Out’
The sale of Stone Brewing to Sapporo U.S.A last week is without a doubt the biggest story of the year so far in the craft brewing industry. It has been a relatively quiet year news-wise in the beer industry as a whole, with few large acquisitions being announced half way through 2022. Although it was clear that Stone Brewing was financially stressed after testimony in the Molson Coors litigation became public, it was still a bit of a cultural shock when the sale to Sapporo was announced, perhaps in part because Stone co-founder Greg Koch repeatedly claimed over many years that the company would never “sell out.”
“Sure. I’d said it dozens of times. Quite possibly well over 100,” said Greg in a blog post describing his personal feelings about the sale to Sapporo. “I 1000% meant it every single time. It’s what I truly believed. I said it while pounding my fist both physically and metaphorically on the table. I’d said it over the telephone or on video with the narrative emphasis ‘…he says while pounding his fist on the table.’ The words: I will never sell out.”
Greg goes on to describe his personal feelings around the sale and that he will not be staying on with the company going forward. It has been reported that he will remain on the ownership team for Stone Distributing, which was not part of the Sapporo sale.
Beer Pricing Up 4.5%in Last Year – Expected to Rise More
According to the Bureau of Labor Statistics most recent edition, beer prices have increased 4.5 percent over the past 12 months to May.
“That’s way faster than it’s been [rising] over the last decade, which has been like one and a half percent,” Michael Uhrich, the founder and chief economist at Seventh Point Analytic Consulting, and the former chief economist of the Beer Institute told VinePair.
Predictions are that beer prices will continue to increase due to a number of factors. The biggest question facing craft brewers is how will the price hikes impact the craft consumer. And will the global brewers be able (and willing) to artificially keep price down on their own faux craft brands, at the expense of independent craft brewers.
Expert Panel Explores Non-Alcoholic Craft Beer as Segment Continues to Grow
The U.S. non-alcoholic beer market surpassed $9.5 billion in 2019, and is projected to see a steady compound annual growth rate of 7.5% between now and 2026, according to Global Market Insights. More and more craft brewers are looking to the growing segment, not only to tap into the growth potential, but also to fulfill a need of their customer base, who often will switch back forth between full-strength beers and an occasional N/A.
A number of larger craft brewers have jumped into the category such as Brooklyn Brewery with its Special Effects N/A IPA and of course Athletic Brewing’s range of N/A beers, but even smaller craft breweries such as Leader Brewing in Palm Bay Florida have just recently added an N/A beer to their portfolio.
Pioneers in the craft N/A category sat down together recently for a detailed conversation at the Craft Brewers Conference in Minneapolis to unpack lessons learned in designing, brewing, marketing and distributing for the Sober-Curious market.
Lagunitas Sells 50% Stake in Moonlight Brewing to The Bruery Founder Patrick Rue
Moonlight Brewing Company, the iconic 30-year old pioneering brewery in Santa Rosa, California has taken another twist in ownership with the announcement that Patrick Rue, founder and former owner of The Bruery would buy the 50% stake in the company that is owned by Heineken.
The story begins back in June, 2016 when Tony McGee, still at the helm of Lagunitas Brewing Company a year after Heineken purchased 50% of Lagunitas, announced that Lagunitas had purchased a stake in three breweries; Southend Brewery and Smokehouse in Charleston, S.C., Independence Brewing Co. in Austin, Texas, and Moonlight Brewing. The idea was that Lagunitas could help bolster the three much smaller breweries through shared resources, probably not something that Heineken cared much about, but had little influence in the decision with a 50% ownership stake.
One year later in May, 2017 it was announced that Heineken was taking full ownership of Lagunitas by buying the remaining 50% of the company. Tony McGee left the company, leaving Moonlight owner and founder Brian Hunt with a partner he never anticipated.
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