Based on a report from the Brewers Association, the article describes an uptick last year in not only craft beer sales, but growth in market share and number of craft breweries. In 2009, craft breweries reported an overall increase in sales by dollar (10.3%) and by volume (7.2%). Market share increased to 6.9% by dollar amount of the whole beer industry.
(Oskar Blues, who opened this new facility in Longmont, reported a sales increase of 145% last year)
This is welcome news. That craft brewing, which can be considered a premium product, can expand its economic heft during a time of wallet tightening is impressive. Besides the raw numeric growth, 49 extra breweries jumped into the market over the past year. This shows that investors and entrepreneurs see continued potential in the craft brewing market, and are willing, despite the economic downturn, to jump in feet first.
Going further, specialty brews, like seasonals, grew 25% last year. People want interesting new, and sometimes challenging, options. Craft brewing is providing those options. We haven't hit any sort of market saturation point yet. There are still opportunities out there for new brewers with new ideas.
(Update: You can find a further writeup of the uptick in craft brewing at the Denver Craft Beer Examiner Blog)
Have a Happy Friday!
5 comments:
It's funny that you mention market saturation. Many distributors and wholesalers are starting to voice concern that there are TOO MANY craft breweries out there and market saturation is hindering sales. Despite having over 1500 breweries out there; there are more wine SKUs out there than beer SKUs AND wine's profitability and market share of alcoholic beverages has decreased when craft beer has seen continued growth. Yet no wholesaler has decried that wine is oversaturated.
Who owns the distributors and wholesalers? AB-Inbev and MillerCoors.
Your antiquated three-tier system at work, ladies and gentlemen.
http://worldclassbeverages.wordpress.com/2010/03/10/less-is-more-are-there-too-many-beers/
This is the link to the article I gleaned all this from. The posted comments are fun to read too. Especially from my future boss at the end!
That was the point I was trying to make without going into much detail. You should like blog about this stuff or something...
The big quote I took from that article was "...but I know that most of our consumers seem to prefer that we increase our selection and product list." Talk what you will about "clutter" but there is that demand...
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