The Brewers Association has released its report on mid-year growth of craft breweries, and the results show that while the industry is still growing, craft beer growth has slowed dramatically.
According to the report, craft beer volumes increased 5% in the first half of 2017. That number is lower than 2016’s mid-year increase of 8%. It is significantly lower than the 16% mid-year production increase of 2015.
In the past two years, the number of US breweries in the U.S. has increased by nearly half. There are more than 5,500 breweries in the United States, an increase of nearly one-sixth over the past year. There are nearly half as many breweries currently in the planning stages.
So while growth may have slowed, the market has not finished expanding.
What Slower Craft Beer Growth Means for Your Brewery
In a crowded marketplace, creativity can win the day.
We have all noticed breweries experimenting with unusual types of beer, unexpected flavors in their beer, and attention-grabbing names and labels.
Breweries across the nation plan unique events to draw customers. They establish traditions like “brewery yoga” to expand their fan base. They partner with other breweries to brew collaboration beers, and they partner with other local businesses to host beer-pairing events.
The crowded marketplace has also contributed to increased litigiousness. It’s common to come across stories of brewery vs. brewery on the subject of beer names, beer labels, even font style.
As you plan different ways to keep your brewery front of mind for current and future customers, remember to keep a close eye on your risk exposures.
Before planning an event or a business partnership, check with your team of advisors—including your insurance agent.
For more than 25 years, Beall Financial and Insurance Services, Inc., has been helping corporations and individuals protect their most important assets. The agency’s client base covers a spectrum of niche businesses, such as craft breweries, that require specialized insurance packages and knowledge. With California offices in Redlands and Newport Beach, Beall Financial and Insurance Services serves clients nationwide.