Craft Brewer Sales Continue To Soar Past Other Segments

Brewers Association Announces Retail Sales Up 16 Percent

Boulder, CO – Thursday, February 28, 2008 – In what has become a true American success story, the craft beer market again grew by double digits in 2007, leading all other segments in the beer category. The Brewers Association reports estimated sales by independent craft brewers up 12 percent by volume and 16 percent in dollars for 2007. Craft brewers' share of the beer category is 3.8 percent of production and 5.9 percent of retail sales.

The Brewers Association annually polls the country’s craft brewers to estimate the total volume of beer sold by brewpubs, microbreweries, and regional craft breweries in the United States, and uses scan data to estimate sales. Results show that the U.S. had 1,449 total breweries in operation in the U.S. during 2007, including 1,406 small, independent, and traditional craft brewers¹. Nearly 70 percent of craft breweries are brewpubs that sell most or all of their beer on-premises.

“Since 2004, dollar sales by craft brewers have increased 58 percent,” said Paul Gatza, Director of the Brewers Association. “The strength of this correlates with the American trend of buying local products and a preference for more flavorful foods and beers.”

The Brewers Association estimates the actual dollar sales figures from craft brewers at more than $5.74 billion, up from $4.95 billion in 2006. Sales in barrels equaled 8,011,141 (one barrel is 31 U.S. gallons) up from 7,147,050 barrels in 2006². The 2007 increase totals 864,091 barrels, which is the equivalent of 11.9 million cases or 285 million 12-ounce bottles of beer.

For more statistics visit the updated 2007 Craft Beer Industry Statistics Web page. A more extensive analysis will be released April 17 during the Craft Brewers Conference in San Diego, California. The Association's full 2007 industry analysis, which shows regional trends and sales by individual brewery, is published in the May/June issue of The New Brewer.

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.

2. Note: 2006 adjusted to include Carlos Alvarez/Gambrinus companies (Spoetzl, BridgePort, Pete's, Trumer), Ommegang, Ramapo Valley, adding 411k bbls to 2006 total.