Bottoms Up

Beer and wine in the Bay Area and beyond

Craft Beer Sales Still Soaring

By William Brand
Monday, August 21st, 2006 at 4:57 pm in Uncategorized.

This is so important and interesting that I’m posting it raw it’s a handout from the Brewers Association in Boulder, CO. Just got it via email. One caveat: Craft beer sales are still a small percentage of total beer sales in the U.S. About 3.8 percent, although so-called off-premise sales, that is beer sold in stores, the market share is quite a bit higher, around 11 percent. And, if you cross out the red states AKA the Midwest, percentages rise even more.

Also, for more background I’ve also just posted and article on craft beer that ran in the Oakland Tribune last spring. b

– The Brewers Association today (Monday, Aug. 21, 2006) reported the volume of craft beer sold in the first half of 2006 rose 11 percent compared to the same period in 2005.

“The rate of growth in the craft beer segment appears to be accelerating,” said Paul Gatza, Director of the Brewers Association professional division. “This is the third straight year we’ve seen an increase in the craft beer growth rate.”

The current surge in growth comes on top of strong performance by the nation’s small, independent and traditional brewers over the last two years. In 2004, the volume of craft beer sold increased by 7 percent and in 2005 it rose by 9 percent.

“This growth represents strong performance by established craft brewers over several years,” said Ray Daniels, Director of Craft Beer Marketing for the Brewers Association. “Unlike the early days of our industry, newly founded breweries do not add significantly to industry-wide production.”

The craft beer industry last saw double digit growth in 1996, a year in which the number of craft breweries in operation increased by more than 35 percent and volume increased by 26 percent. By contrast, the number of operating craft breweries has remained relatively constant in recent years as sales growth has come from established craft brewers.

Craft beer sales in grocery, convenience, drug and liquor stores for the first half of 2006 as tracked by Information Resources Inc. (IRI) show volume growth of 12 to 13 percent and dollar sales up 15 to 16 percent, according Dan Wandel, Vice President of Beverage Alcohol Client Solutions for IRI.

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