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Is the Craft Beer Rocket Ride Fizzling Out?

Is the Craft Beer Rocket Ride Fizzling Out?

Is the Craft Beer Rocket Ride Fizzling Out?
Is the Craft Beer Rocket Ride Fizzling Out?

Is the Craft Beer Rocket Ride Fizzling Out?

Craft beer is still growing as part of the total beer industry. Like wineries, there is a craft beer brewery in all 50 states. As a class in the

alcoholic beverages industry, craft-making has only been around for four decades; however, there is no specific incident to characterize

the official origin of the industry. In 1859, Anchor Brewing Company of San Francisco started a brewing operation. Unfortunately, until

1965 the company had a bad history of financial failures in making good beer. However, it has had a stellar record of success since 1965 and is

now recognized as America’s first craft beer brewer.

Is the Craft Beer Rocket Ride Fizzling Out?

Despite the growth of the breweries, the craft beer industry continues to face significant problems. For example: constantly changing

consumer trends; Rapid business expansion; Growth in product offerings (which include new products such as hard cider); Distribution

restrictions; Response to market trends; And, imports. However, a new tax law was enacted in December and required the release of

capital for expansion and marketing programs without debt. “The CMBTRA (Craft Beverage Modernization and Tax Improvement Act-

2017) is cutting the excise tax bill for small brewers across the country as part of a new tax bill,” reported Bart Watson, chief economist at

the Brewers Association. It is a worthy investment. “There are benefits to wine / spirits producers as well.”

Is the Craft Beer Rocket Ride Fizzling Out?

Is the Craft Beer Rocket Ride Fizzling Out?
Is the Craft Beer Rocket Ride Fizzling Out?

Per capita beer consumption in the U.S. has been flat for nearly a decade. However, and this is an important point, in 2017 “craft beer”

increased by approximately 5%. The main concern in “here and now” is the loss in shipments that occurred to the industry in 2017. Beer

Institute economist Michael Uhrich says, “The 2.2 percent decline in shipments (through November 2017) is the largest percentage drop

in annual domestic beer shipments since 1954.” This begs the question: will this signal change in the industry? Beer sales have been

reported through shipped barrels; The 2017 numbers indicate that 3.8 million fewer barrels were shipped. In the U.S. in 2017 Brewers

produced 170 million barrels; Each barrel represents 248 glasses of beer. A barrel of beer is 30 gallons of beer and a 60 gallon barrel of

wine. As an aside, the craft spirits industry has realized a 4% increase and is expected to report a 2% increase in wine production.

Is the Craft Beer Rocket Ride Fizzling Out?

Mr Bart Watson said in 2017, consumers will trade their domestic logger and light logger domestic brand preferences for imported brands

with a decrease in domestic shipping. In addition, issues such as marketing / branding, distribution, demographic changes etc. are also

affecting the industry. “I expect this trend to continue over the medium term,” Watson writes. “Additionally, the growth of wine and

alcohol are two other reasons for the market penetration.” Craft brewers are leading the way in solving new niches such as style and

marketing.

According to Nielsen Home scan statistics, US households that serve wine, beer and spirits (26 percent of families and 55 percent of sales

dollars for adult beverages) now outnumber those who consume only one or two of them. A Harris poll of January 16-18, 2017 found that

39 percent of people reach for beer, while 29 percent go for wine, 27 for spirits, and 4 percent for hard cider. This is up from 21 percent for

wine a decade ago, but down from 45 percent for beer and 32 percent for spirits. This reflects a shift towards wine as the millennials get

older.

Is the Craft Beer Rocket Ride Fizzling Out?

According to Nielsen Scarborough and Wine Market Council, younger consumers are not drinking wine as often as older consumers.

 

It is important to realize that the craft beer industry is producing over 400 styles of beer; Many are targeting regional drinker ’preferences.

Craft Beer Consumer Demographics:

· 44% have a family income of $ 100,000 + (90% of the family includes 2 or more individuals)

80 80% of craft beer drinkers are white

57 57% of the market is for men aged 25-54

22 22% of the market is for women aged 25-54 years

· 50% have college and master’s degrees

· 81% have some college, college degrees or graduate degrees

55 55% of craft beer markets are West Coast and Atlantic

Is the Craft Beer Rocket Ride Fizzling Out?

One of the many things that has spurred growth and interest in craft beer is a homemade hobby. My first taste of homemade beer was

when I tasted the first taste of homemade beer in 1976 – it was exciting. Even in wine, there is a cottage industry of people who produce

some of their own wines. It includes people who buy vines and have their own mini-vineyard.

Quite simply, it has the advantage of being able to feed beer and wine into a small batch hobby. It’s for people to experiment with new

beverage products.

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