Beverage Industry’s State Of American Beer Report

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The Atlantic magazine had a good round-up of the State of American Beer, based on a report from the trade publication Beverage Industry. Beverage Industry’s March issue had a series of articles on different segments, including Craft brewers’ sales growth continues, Domestic beer case sales decline, Mexican beers dominate imported beer growth and Hard cider draws in consumers from outside the beer category. In addition, at the same time they released a separate report, the 2014 U.S. Beer Category Report.

You could spend the time to read through all of them (and I’d encourage you to do so) but to get an overview of the reports, The Atlantic’s coverage provides the highlights (and even does a better job with the charts). For example, here’s the top craft brands from 2013.

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And here’s case sales by brand in a piechart.

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And this last one, the percentage change in case sales, is amazing because is shows just how fast Lagunitas is growing, though Stone’s doing pretty well on the growth front, too.

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Top 50 Breweries For 2013

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The Brewers Association has also just announced the top 50 breweries in the U.S. based on sales, by volume, for 2013. This includes all breweries, regardless of size or other parameters. Here is the new list:
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Here is this year’s press release.

Not too much movement again this year, except for a few small shufflings, and no changes at all in the top ten. Only three new breweries made the list; Ballast Point, Narragansett (which had been on the year before in 2011) and Left Hand Brewing.

For the past six years, I’ve also posted an annotated list, showing the changes in each brewery’s rank from year to year. This year, the BA thoughtfully has already done that, saving me a lot of time and math. If you want to see the previous annotated lists for comparison, here is 2012, 2011, 2010, 2009, 2008, 2007 and 2006.

Top 50 Craft Breweries For 2013

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The Brewers Association just announced the top 50 craft breweries in the U.S. based on sales, by volume, for 2013, which is listed below here. For the seventh year, they’ve also released a list of the top 50 breweries, which includes all breweries. Here is this year’s craft brewery list:
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Three breweries are new to this year’s Top 50 Craft Breweries list; Sixpoint Brewing, Gordon Biersch (the production brewery, not the brewpubs) and 21st Amendment Brewery & Restaurant. Here is this year’s press release. For the past six years, I’ve also posted an annotated list, showing the changes in each brewery’s rank from year to year. This year, the BA thoughtfully has already done that, saving me a lot of time and math.

New Study Reveals We Can Identify One Trillion Distinct Smells

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A new story in the Washington Post’s Health, Science & Environment section, entitled Human nose can detect at least 1 trillion odors — far more than thought, says study of smell, appears to upend conventional wisdom about the number of smells that humans can identify. The general number has been around 10,000 as long as I can remember. By contrast, we can see “a few million different colors” and our ears can take in around 340,000 different tones. So while smell used to be a lot farther down on the sensory spectrum, this study would appear to rocket our sense of smell to the front of the line. For beer lovers, that can’t be a surprise, because our nose conveys so much more about a beer than seeing or hearing it can, and not even tasting it comes close, as any person who’s had a head cold can tell you, after trying to taste a beer without a working sense of smell.

The study itself, Humans Can Discriminate More than 1 Trillion Olfactory Stimuli, will be published in the journal Science. Here’s the abstract:

Humans can discriminate several million different colors and almost half a million different tones, but the number of discriminable olfactory stimuli remains unknown. The lay and scientific literature typically claims that humans can discriminate 10,000 odors, but this number has never been empirically validated. We determined the resolution of the human sense of smell by testing the capacity of humans to discriminate odor mixtures with varying numbers of shared components. On the basis of the results of psychophysical testing, we calculated that humans can discriminate at least 1 trillion olfactory stimuli. This is far more than previous estimates of distinguishable olfactory stimuli. It demonstrates that the human olfactory system, with its hundreds of different olfactory receptors, far outperforms the other senses in the number of physically different stimuli it can discriminate.

It will be very interesting to see if further studies corroborate this finding, but frankly it makes a lot of sense (no pun intended).

Science also has a short interview with Andreas Keller, one of the scientists who worked on the study, where he explains some of the reasons his team thinks that their study has shown we’re capable of so many more aromas than previously thought.

Craft Beer Growth Continues Rapid Acceleration In 2013

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The Brewers Association today released the preliminary numbers for beer sales last year. I thought last years numbers were great, but the 2013 numbers look unbelievable, and accelerate the momentum for craft beer. The preliminary numbers indicate that “craft brewers saw an 18 percent rise in volume, representing a total of 15.6 million barrels, and a 20 percent increase in retail dollar value.”

Here’s more on the news, from the press release:

In 2013, craft brewers reached 7.8 percent volume of the total U.S. beer market, up from 6.5 percent the previous year. Additionally, craft dollar share of the total U.S. beer market reached 14.3 percent in 2013, as retail dollar value from craft brewers was estimated at $14.3 billion, up from $11.9 billion in 2012.

As for the runaway brewery count, the number of breweries races closer to 3,000.

The number of operating breweries in the U.S. in 2013 totaled 2,822, with 2,768 of those considered craft, demonstrating that craft breweries make up 98 percent of all U.S. operating breweries. This count includes 413 new brewery openings and 44 closings. Combined with already existing and established breweries and brewpubs, craft brewers provided 110,273 jobs, an increase of almost 2,000 from the previous year.

And here’s all of that good news, fermented into a colorful infographic.

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Offline Sales Traffic Drivers

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Earlier today there was an interesting infographic tweeted by the Wall Street Journal, by their WSJ Graphics division, entitled Offline Sales, showing how “retailers rely heavily on consumer products to drive store traffic.” In the top spot was “food and alcohol,” with 99% of $884 billion in sale made in stores, and only 1% online. That’s not too much of a surprise, as it’s somewhat a pain in the neck to order food or alcohol online, and in some states it’s even illegal (for the alcohol, at least). Even where it is, it’s prohibitively expensive for most beers. The majority of beers bought online, I’d guess, are of the rarer, hard-to-find variety. But the chart also suggests that beer is therefore very important to retailers trying to persuade customers to get off their laptops and drive down to their brick and mortar stores.

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Beer Excise Tax Rates by State, 2014

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The last time I saw the Tax Foundation look at beer excise taxes was in 2009, but recently they updated their map of Beer Excise Tax Rates by State, for 2014, taking into account several states who changed their rates over that time.

Tax treatment of beer varies widely across the U.S., ranging from a low of $0.02 per gallon in Wyoming to a high of $1.17 per gallon in Tennessee. Check out today’s map below to see where your state lies on the beer tax spectrum.

A few state rates changed since we released last year’s data. Namely, North Carolina’s tax per gallon increased by nine cents, and there were slight increases in Arkansas (+2 cents), Kentucky (+2 cents), and Washington, D.C. (+2 cents). Washington’s tax decreased by 50 cents, and Minnesota’s number was one cent lower than last year. (See the 2013 edition of our Facts & Figures booklet for last year’s numbers.)

There isn’t much consistency on how state and local governments tax beer. This rate can include fixed-rate per volume taxes; wholesale taxes that are usually a percentage of the value of the product; distributor taxes (usually structured as license fees but are usually a percentage of revenues); retail taxes, in which retailers owe an extra percentage of revenues; case or bottle fees (which can vary based on size of container); and additional sales taxes (note that this measure does not include general sales tax, only those in excess of the general rate).

The Beer Institute points out that “taxes are the single most expensive ingredient in beer, costing more than labor and raw materials combined.” They cite an economic analysis that found “if all the taxes levied on the production, distribution, and retailing of beer are added up, they amount to more than 40% of the retail price” (note that this may include general sales tax and federal beer taxes, which are not included in the estimates displayed on the map). Last year, we did a podcast with Lester Jones, Chief Economist at the Beer Institute on tax treatment of beer, which is worth a listen.

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Top Beers In The US By State 2008-2013

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Here’s an interesting piece of data. There’s not a lot of background for it, but from what I can tell it’s an interactive map showing the “Top Beers In The US By State 2008-2013,” by Perlinnoise. Since it was tweeted by RateBeer, I can only assume it’s based on their ratings over that six year period of time, from their top 100 list. Only 18 states had beers that made the list, and from the interactive map, holding your cursor over a colored state brings up a list of the beers that made their list. It also includes the number from each state. California has the most, by a wide margin, at 128. Second is Michigan, with 46, followed by Indiana (24), Florida (19), Colorado (18) and Oregon (17). Unfortunately, one glitch with the interactive map is that you can actually scroll down and see the whole list of beers from California.

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