Breweries

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 8,884 production breweries in the US include about 120 national or international breweries producing over 6 million barrels per year. Around 220 are regional craft breweries producing between 15,000 and 6 million barrels annually. Around 1,854 microbreweries produce less than 15,000 barrels per year. An additional 3,219 brewpub restaurants and 3,471 taprooms also produce beer on-site.

Industry Highly Regulated

The beer industry is highly regulated at both the state and federal level.

Competition Among Breweries

The beer industry is highly competitive with an increasing number of new entrants.

Industry size & Structure

The average brewery employees 7 workers and generates over $3 million in annual sales.

    • The US brewing industry includes approximately 8,884 production breweries. About 120 are national or international breweries producing over 6 million barrels per year. Around 220 are regional craft breweries producing between 15,000 and 6 million barrels annually. Around 1,854 microbreweries produce less than 15,000 barrels per year. An additional 3,219 brewpub restaurants and 3,471 taprooms also produce beer on-site.
    • The typical global brewery brews 100 million barrels per year, with revenue per barrel of approximately $125 (a barrel is 31 gallons).
    • The top three global breweries (including Belgium-based AB InBev and Molson Coors) command 71% of the US beer market.
    • Regional craft breweries include Boston Beer Company, Sierra Nevada, and New Belgium. These breweries typically distribute nationally and often internationally. The 220-or-so regional breweries produce around 15 million barrels of beer annually.
    • The nation's 1,854 microbreweries produce about 4.3 million barrels of beer annually.
    • About 3,219 brewpubs produce 1.4 million barrels of beer each year.
    • Per capita, Americans consume about 26 gallons of beer annually. Per capita beer sales are highest in Colorado, Vermont, Oregon and Maine, and lowest in Mississippi, Utah, West Virginia and Maryland.
                                    Industry Forecast
                                    Breweries Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Coronavirus Update

                                    Apr 29, 2022 - Ukraine War Could Worsen Aluminum Can Shortage
                                    • Breweries may have production difficulties due to the aluminum can shortage. After dropping in 2020 at the height of the pandemic, demand for aluminum grew 11% in 2021 as beverage can manufacturers, car makers, and other manufacturers increased production, according to the Aluminum Association. The global aluminum market has also been shaken by Russia’s invasion of Ukraine and the resulting sanctions on Russia by the US and its allies. Before the invasion, Russia accounted for about 6% of aluminum made in US smelters, according to industry insiders cited by The Wall Street Journal.
                                    • Russia’s invasion of Ukraine has also prompted some major alcoholic beverage companies to pull back from the Russian market. Beer giants Anheuser-Busch InBev, Carlsberg, Heineken all plan to exit Russia.
                                    • New COVID-19 cases are decreasing nationally, and restaurant, bar, and nightclub patronage may increase. In late April 2022, the CDC announced that according to the agency’s research, about 60% of the US population had been infected with COVID-19 by February 2022. Some medical experts suggest the high rate of infection and the resulting increase in immunity among the US population may signal a new phase where infections cause less and less severe illness.
                                    • Twenty-three states prohibit proof-of-vaccination requirements for entry to businesses, including restaurants, bars, and nightclubs. Twelve states -- California, Colorado, Connecticut, Louisiana, Massachusetts, Minnesota, Nevada, New Jersey, New York, Rhode Island, Virginia, and Washington — have digital apps available for vaccine verification. Some major cities that had required proof of vaccination for indoor dining – including New York, Los Angeles, San Francisco, Seattle, Philadelphia, and Boston - have since removed the requirement. Hawaii, the final holdout among states with indoor masking mandates, let its mask mandate expire on March 25. The Centers for Disease Control and Prevention (CDC) still recommends that masks be worn in areas of substantial or high transmission, regardless of vaccination status.
                                    • The coronavirus pandemic drove consumer interest in buying beer directly from brewers, according to the Direct-to-Consumer Beer Shipping Report from Sovos ShipCompliant and the Brewers Association. Some industry watchers expect the trend to accelerate even as the pandemic has waned. About 84% of regular craft beer drinkers — defined as those who drink craft beer at least once per month — say that they want to be able to legally purchase beer via direct-to-consumer (DtC) shipping to their homes. About 73% of regular craft beer drinkers surveyed for the report said that the pandemic had increased their interest in purchasing craft beer via DtC shipping.
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