Artigos de SBDCNet - SBDC Clearinghouse

Brewery Business 2012

Learn about t rends in t he Brewery Business and where t o f ind more inf o about
how t o open your own Brewery or Craf t Beer Business. Dont f orget you can
receive f ree or low-cost t raining and f ree prof essional business advice,
f rom your local Small Business Development Cent er!
Get a f ree Brewery Business business plan template on our
Business Plans page.
Brewery Business Overview & Trends,
2012
SIC Code: 2082, NAICS Code: 312120
This Brewery Business indust ry summary is f rom First Research which also
sells a f ull version of t his report .
The US brewery indust ry includes about 400 companies wit h
combined annual revenue of about $25 billion. The t wo major
brewers in t he US, Anheuser-Busch (Budweiser brands) and
MillerCoors (Miller and Coors brands), are part of int ernat ional
brewing companies; The Bost on Beer Company (Samuel Adams)
is t he leading US craf t beer brewer. Count ing brewpubs and
microbreweries, t he brewery indust ry in t he US includes more t han
2,000 est ablishment s, according t o t he Brewers Associat ion.
Annual beer product ion in t he US is about 230 million hect olit ers,
according t o t he Bart h-Haas Group. The indust ry is highly
concentrated: t he eight largest breweries account f or about 90
percent of indust ry revenue.
Worldwide, breweries produce about 1.8 billion hect olit ers of beer
annually. The largest int ernat ional beer makers are Anheuser-
Busch InBev (Belgium), SABMiller (UK), and Heineken (t he
Net herlands).
COMPETITIVE LANDSCAPE
The major driver of demand is consumer leisure activity. The
prof it abilit y of individual companies depends on market ing,
dist ribut ion, and operat ional ef f iciency. Large companies have
advant ages in market ing and sales, product ion economies of
scale, and inf luence wit h dist ribut ors. Small companies can
compet e ef f ect ively by developing specialt y product s and serving
a local or regional market . The indust ry is capital-intensive:
average annual revenue per worker is about $900,000, but is much
lower f or smaller companies.
Compet it ion among beers is wit h nat ional, regional, and local
brands, and import ed brews. Compet it ion also comes f rom ot her
alcoholic beverages, especially lower-priced wine, and f rom
nonalcoholic drinks.
This Brewery Business market research report summary is f rom IBISWorld
which also sells a f ull version of t his report .
The slower economy cont ribut ed t o higher brewery revenues as
consumers subst it ut ed beer product s f or more expensive dist illed
spirit s.
This t rend is expect ed t o f ade as t he economic recovery gains st eam
and rising disposable incomes lead consumers t o expand purchases of
wine and spirit s. For example, IBISWorld project s 2012 indust ry revenue
will decline 0.2% t o $24.5 billion as t he shif t back t o wine and spirit s
begins t o t ake hold.
The indust ry recent ly became even more heavily concent rat ed due t o
t he 2008 mergers of Anheuser-Busch/InBev (now, Anheuser-Busch InBev)
and Coors/SABMiller (now, MillerCoors): t hese t wo brewing companies
new cont rol 84.1% of t he U.S. market .
The brewery business has deep root s in int ernat ional t rade f lows:
IBISWorld est imat es import s will make up 14.6% of domest ic demand in
2012 ($3.7+ billion), and export s will account f or 11.5% of brewery
revenue in 2012.
IBISWorld f orecast s an average annual revenue growt h rat e of 1.0%
t hrough 2017, reaching $25.7 billion t hat year.
Prof it margins are expect ed t o t ight en t o 11.6% by 2017, due t o price
compet it ion among t he major players, and an increasing share of lower-
margin craf t breweries.
Craf t brewers cont inue t o creat e compet it ion in t he indust ry. IBISWorld
project s t hat f ewer new microbreweries will commence operat ions in t he
coming 5 years, relat ive t o t he previous 5 years t hrough 2012. The
number of new craf t brewers is est imat ed t o increase at an average
annual rat e of 3.9%, reaching 2,250 microbreweries in 2017.
Government belt -t ight ening could lead t o excise t ax increases, which
could af f ect prof it s. However, most of t his act ivit y is expect ed at t he
st at e or local level rat her t han a broad nat ional t ax. IBIS World cit es
Connect icut and Maryland as st at es wit h new excise t ax act ivit y.
125 year Brewery Count f rom www.BrewersAssociat ion.org
Craf t Brewers are an import ant segment of t he U.S. brewery
business. According t o t he Brewers Associat ion, craf t brewery market
segment s include Microbrewery, Brewpub, Cont ract Brewing Company,
Regional Brewery, Regional Craf t Brewery, and Large Brewery.
This craf t brewery st at ist ical excerpt f rom t he Brewers Associat ion describes
t he size of t he indust ry:
Craf t brewers current ly provide an est imat ed 103,585 jobs in
t he U.S., including serving st af f in brewpubs.
Growt h of t he craf t brewing indust ry in 2011 was 13% by
volume and 15% by dollars compared t o growt h in 2010 of
12% by volume and 15% by dollars.
Craf t brewers sold an est imat ed 11,468,152 barrels* of beer
in 2011, up f rom 10,133,571 in 2010.
The craf t brewing sales share in 2011 was 5.7% by volume
and 9.1% by dollars.
Craf t brewer ret ail dollar value in 2011 was an est imat ed $8.7
billion, up f rom $7.6 billion in 2010.
As of March 26, 2012, t he Brewers Associat ion is aware of
250 brewery openings in 2011 (174 microbreweries and 76
brewpubs) and 37 brewery closings (12 microbreweries and
25 brewpubs).
1,940 craf t breweries operat ed f or some or all of 2011,
comprised of 1,063 brewpubs, 789 microbreweries and 88
regional craf t breweries.
Independent ly aut hored Report on Craf t Beer Indust ry available f or download.
Brewery Business Customer Demographics
According t o t he IBIS World report ment ioned above:
Consumers aged 35 t o 44 account f or t he largest share (23.2%) of beer
drinkers, while t hose aged 25 t o 34 are t he second largest share (22.8%),
f ollowed by 45 t o 54 year olds (21.8%), 55 t o 64 (13%), 65+ (9.7%), and 21
t o 24 (9.5%).
The youngest age group (21 t o 24) showed t he st rongest growt h over
t he last 5 years ending in 2012, and also showed t he great est int erest in
purchasing premium and craf t beers.
Beer drinkers were predominant ly male (58%), but t he share of f emale
drinkers has been rising over t he last 5 years, due in part t o craf t beers
and f lavored malt beverages.
Addit ional inf ormat ion on craf t beer cust omers can be f ound in a variet y of
t opical and t rade publicat ions, including:
Who is t he New Beer Cust omer?
Big Beer Dresses Up in Craf t Beer Clot hing
U.S. Beer Demographics
Brewery Business Startup Costs
Ent repreneur.com est imat es t he st art -up cost s f or a Brew Pub Business
t o be: $100,000.
Due t o t he highly cust omized nat ure of microbreweries, t here are many
approaches t o consider. Much insight can be gained on st art up cost s,
st rat egies, et c., by visit ing craf t beer blogs and similar unof f icial
inf ormat ion sources. Here is a sample: PanicBrewing.com,
SoundBrew.com, BeerBrewing.com.
Also consider opening a Nanobrewery.
How t o Boot st rap an $11 million Brewery
Microbrewery, Craft Beer, Brew Pub Business Plans
Microbrewery Business Plan
Brewer Associat ions Guide t o St art ing Your Own Brewery
Irish Pub Bar Business Plan
Panic Brewing Business Plan (explanat ion) and Panic Brewing Business
Plan Sample (PDF)
Art icle on Pricing Craf t Beer
Craft Beer Media Outlets
Craf t Beer.com
The New Brewer Online
Zymurgy
American Brewer Magazine
Beer Business Daily
Craf t Beer Business Daily
Brewery Business Associations
Trade associat ions of t en are excellent sources of inf ormat ion on an indust ry.
Here are some relevant indust ry associat ions:
Beer Inst it ut e
Brewers Associat ion
American Homebrewers Associat ion
Mast er Brewers Associat ion of t he Americas
American Associat ion of Franchisees and Dealers
Brewery Business Licensing Requirements
SBA Tool: How t o Get a Business License in Your Area
Alcohol and Tobacco Tax and Trade Bureau
Tobacco Tax and Trade Bureau Permission t o Operat e
American Homebrewers Associat ion St at ut es
Sources
For t he f ull t ext of any cont ent in t his Small Business Market Research Report
f rom SBDCNet , t he link has been provided f or t he report publisher, while a
dat abase art icle can be obt ained f rom t he local public or academic library or
purchased f rom a document delivery service f or a nominal f ee.