Across the board mirroring most industries, alcohol sales were down in 2009, beer being no exception with a drop in sales of about 2%. Craft beer sales fared well despite the economic slump, with a sharp sales boost of 10.3% and a volume increase of 7.2%, according to the Brewers Association. That’s in influx of 613,992 additional barrels of quality, hand produced craft beer into the beer market. Mosey on over to their site for more detailed information.
In their article, the Brewer’s Association states:
In 2009, craft brewers represented 4.3 percent of volume and 6.9 percent of retail dollars for the total U.S. beer category. With the total U.S. beer industry representing an estimated retail dollar value of $101 billion, the Brewers Association estimates the actual dollar sales figure from craft brewers in 2009 was $7 billion, up from $6.3 billion in 2008.
In the grand scheme of things, craft beer is still the needle in the haystack, but these figures have some profound implications. First of all, Americans are drinking considerably less beer. A nationwide drop of two percent is no small margin. Second, some are clearly transmigrating to different suds. And thirdly, and most importantly to me, there is room for considerable growth in the craft community, and people are ready for it.
The beauty of capitalism (sorry Michael Moore…I do know it has its flaws) is that it is very responsive to market conditions: A struggling giant inadvertently opens the door for the little guy. An investor who reads these figures will be less inclined than before to get in bed with a company like inBev and more interested in getting in on the ground level with a micro brewery start up…perhaps the start up that Mike and I dream of every night.
Case in point, us beer geeks aren’t the only ones to take notice of our small victory:
The 2009 growth and popularity of beer from small and independent breweries did not go unnoticed by industry observers. The National Restaurant Association Chef Survey (see results), for example, cited “locally-produced wine and beer” among its top five overall trends to watch for in 2010. In the alcohol and cocktails category, the organization ranked “locally-produced wine and beer” as its top trend, while “food-beer pairings” came in at number five on the list.
Little by little, people are tiring of conglomorate. Herd mentality is waning. The same capitalistic system that grew some of the beer giants to their inflated sizes is now the force that is humbling them. This gives me hope.
In my opinion, craft beer will never completely overtake big beer as long as American’s continue to bow before the one eyed monster in our living room that boasts of the macro brewers marketing budget. Besides this, the magnanimous nature of the craft brewer has little to no room for contested market space, dollar motivated mergers/takeovers, and all around consumerism.
At this point, while I rejoice over craft beer’s growth and will continue to do so in subsequent years, I don’t mind that it is still a part of the minority/margin (and not just because my arrogance craves the esoteric). Should the big boys completely fail and we were to wake up tomorrow with InBev, Molson-Coors, etc. a thing of the past, I would hope that marginal mom & pop diversified nature of craft beer continued on.
Here’s to all the micro and craft brewers out there eking out a living for our sake! Cheers!


Good post. Hypothetically speaking, if InBev and the rest were to disappear tomorrow, the price of beer would be astronomical. All the micros in the world combined could not fill the vacuum that would be left if the conglomerates went away. I think they are a necessary evil actually, and I use the term evil in a non-literal sense.
There’s enough of the pie for a lot more craft brewers to enter the market as your post demonstrates. I’ve said it before, its a great time to be alive and be a beer lover!
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Hey yeah, that’s a really good point scott…supply and demand would definitely inflate the price of beer. Also, I wonder if any craft breweries would slowly over time grow into what InBev and the rest have become?
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Nate I think you can see it in a few craft breweries (i.e. growing onto giants) Take for example Sierra Nevada, and New Belgium breweries. They aren’t as big as some of the InBev breweries for sure, but they might have grown past the point of a true “Craft Brewery”. They still make good beer, and have great brews, but they are beginning to flirt with the problems of profit margins and inferior products to increase their margins, because they need to “Feed the Beast”.
Also I heard another statistic just yesterday that blew my mind. Sales of Bud Light were down 23% last year! 2% doesn’t seem like a lot, but clearly certain brews are taking it in the shorts. I think it is good when bad beers take a hit.
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I think Sam Adams is another good example Nate. Not really ‘Craft’ anymore because of the volume they crank out, but still very, very small compared to the InBevs etc.
Its hard to keep in mind how huge some of these breweries are because we don’t typically buy their product. I also happen to think that the Macro beers we tend to avoid like the plague are actually the best gateway beers out there.
How many beer drinkers do you know that started on craft beer? I’m sure there are some, and perhaps there are more nowadays, but when I was cutting my teeth it wasn’t on stuff like Founders Breakfast Stout.
Necessary evil man.
Not to mention how many people can eat and have good lives because they work for one of the Big Guys? How many kids get to go to college, etc? They might not make great beer in our eyes, but they do a lot of good too.
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Let’s make sure that we are using the correct terminology for these breweries. Micro brewery is a small brewery. Many of the great breweries fall under this designation. Craft brewery is a term the is reserved for breweries that push out an amount of beer that is over a certain barrel number. So, Sam Adams, Stone, Sierra, New Belgium are all craft (but not micro) brewers. The real question is beer quality and ingredient content. That’s where the real debate lies.
Just thought I’d clarify the terminology.
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Thanks Micheal, and you’re right, there’s a difference that’s important to keep in mind.
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http://www.brewersassociation.org/attachments/0000/0266/breweries_percap.pdf
Interesting link. Shows the number of breweries per capita in each state. Some places look like they are ripe for new breweries, while others look to have stiff competition.
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Thanks, Scott. I’m glad that agreed with the response. I want to make sure that we are all on the same page.
Thanks, Tex. This will come in handy for Nate and me.
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@Nate: “Also, I wonder if any craft breweries would slowly over time grow into what InBev and the rest have become?”
Here’s a quote from one of our distributors:
“So some of the major craft brewers are pressing the ideal to slow down the development of other brands. Brewers like Magic Hat even suggest that as wholesalers we do not need to even carry anything but the top four, as they currently represent over 70% of the grand total.”
If that’s not macro-like behavior, I don’t know what is.
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True. I think that some of these people are thinking like the rest. I think Nate and I are trending toward something totally different. I agree that the type of behavior you are describing is indicative of the big boys…good point.
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No prob, Mike. As far as I’m concerned, Texas looks ripe for another brewery too.
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I was just thinking about that before. Where do you start a brewery? Someplace w/ an established craft culture (built in local demand) or someplace devoid of craft beer? Maybe someplace in between? Location can play a big part in how many people have access. Still, I think you guys should come to Jersey.
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beer_scientist Reply:
March 10th, 2010 at 11:12 pm
Location can be everything. State laws can be a really big deal. We plan on being able to brew a lot big stuff if we feel like it, so we definitely want to be in a state where that’s possible. It’s still a ways off but we have every intention of opening a brewery.
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