For years Big Beer has dominated the Alcoholic beverage Industry in the U.S. Recently consumer tastes and purchasing trends appear to be shifting. The craft beer industry is gaining popularity as well as market share. Increased growth measured by production volume help demonstrate the consumers’ growing demand for high quality, locally produced beer, in the wide variety of styles and flavors that craft breweries actively offer. The search for a better tasting quality beverage has sparked a dramatic change in the Industry.
THE CRAFT BEER INDUSTRY
ATTRIBUTES. A craft brewery can be classified by three specific characteristics. Typically breweries will be smaller in size with an Annual production of 6 million barrels of beer or less. This…show more content… Overall product sales equaled 19.6 million. The industry saw a 22 percent growth from the previous year. Data Source: Statista
SEGMENTS.
The craft beer market is categorized based upon brewery production output. Output is measured in barrels of beer (BBL) per year. One barrel of beer is equal to 339 12 ounce bottles of beer. According to the Craft Brewers Association there are four distinct market segments.
• Microbrewery. A brewery that produces less than 15,000 barrels of beer per year with 75 percent or more of its beer sold off-site.
• Brewpub. A restaurant-brewery that sells 25 percent or more of its beer on site. The beer is brewed primarily for sale in the restaurant and bar.
• Contract Brewing Company. A business that hires another brewery to produce its beer. It can also be a brewery that hires another brewery to produce additional beer.
• Regional Craft Brewery. An independent regional brewery with a majority of volume in “traditional” or “innovative” beer (www.craftbreweresassociation.org).
THE TEXAS CRAFT BEER