News

The Brewers Association today announced that craft beers sales grew 7.2% in 2009 as the same time that overall beer sales tumbled. The dollar value of craft beer grew even more dramatically, 10.3%. Overall, craft brewers sold 613,992 additional barrels in 2009, an increase equal to about 8.5 million cases.

Overall, U.S. beer sales were down approximately 5 million barrels (31 gallons each) in 2009.

“Beer lovers continue to find great value and enjoyment in fuller flavored craft beers,” Brewers Association director Paul Gatza said for a press release. “Americans have an increasing appreciation of craft beers, and the growing number of brewers behind them. They’re eager to try the latest seasonal release and to sample a variety of beers from different breweries.”

Craft brewers, as defined by the BA, accounted for 4.3% of volume and 6.9% of retail dollars for the total U.S. beer category. The BA estimates actual dollar sales figure from craft brewers in 2009 was $7 billion, up from $6.3 billion in 2008.

The total number of U.S. craft brewers grew from 1,485 to 1,542 in 2009, and they produced 9,115,635 barrels, up from 8,501,713 barrels in 2008. Overall U.S. beer sales fell from approximately 210.4 million barrels to 205.8 million barrels.

Congressman Peter DeFazio (D-Oregon) will deliver the keynote speech at the Craft Brewers Conference (CBC) in Chicago. The conference itself runs April 8-10, with judging for the World Beer Cup bi-annual competition in the days before. More than 1,600 of the world’s leading brewers, brewery owners and brewing supply professionals are expected to attend.

Congressman DeFazio, himself a homebrewer, co-founded and co-chairs the House Small Brewers Caucus in Washington, D.C. Bringing together more than 60 U.S. Representatives, the Caucus strives to educate Congress about the unique issues and challenges faced by America’s small brewery businesses.

“Congressman DeFazio is a true advocate for small brewers, and we’re extremely fortunate to have him join us in Chicago,” Charlie Papazian, president of the Brewers Association, said for a press release. “He has a real passion for the breweries, the brewers and the beer, and he truly understands the unique issues of our industry. Introducing him to the 1,600-plus brewers attending CBC will be a real pleasure.”

“American small brewers are true craftsmen, producing some of the finest beers in the world. As a home brewer myself, I have a deep appreciation for the quality of their work,” Defazio said for the release. “But, perhaps more important than their fine beers, is their place in local communities. These small business men and women create jobs and economic activity, and are an integral part of local community culture. I am pleased to have the opportunity to speak to this growing group of innovative business leaders.”

More about the Craft Brewers Conference here.

More about the World Beer Cup here.

Local, meaning mostly smaller, breweries are outperforming the overall beer market in Great Britain. According to the Society of Independent Brewers (SIBA) there was a 16.8% average increase in individual brewers’ sales turnover.

“In 2009, through the worst of the recession, local brewers record volume growth of 3.75%,” the report states, and “those in production throughout 2008 and 2009 grow 3% year-on-year.”

It attributes the success to several factors, “including the continuing strength of the real ale movement, the boost given by Smaller Brewers Relief, the success of SIBA’s affiliated commercial Access to Market operations, and the modern purchasing trends of an increasing proportion of consumers, who demand distinctive quality and the provenance of true local produce.”

It also points out that while the current industry “is deeply rooted in proud British traditions” that two-thirds of its 700 members have been in business less than 10 years.

SIBA has 443 full brewing members. More than 98% are “local brewers” or “microbrewers.” In fact, more than half brew fewer than 1,000 hectoliters (about 850 US barrels) per years.

Although the report is long on good news it also includes SIBA’s pre-election manifesto, which calls for continued backing for tax breaks offered by Progressive Beer Duty (PBD). It calls the beer duty escalator to be canceled, beer duty frozen, and lower duty rates for lower strength beers.

Belgian beer union officials are talking about intensifying their strike against Anheuser-Busch InBev’s plants in Leuven and Liege although the company said it plans fresh talks with the union today.

A second round of talks ended Tuesday ended without agreement. Staff at the AB InBev plants have been blocking the plant entrances for two weeks.

Production at its Belgian breweries has come to a complete standstill. Company spokeswoman Karen Coeck said walls of beer crates erected since Jan. 7 have prevented the company from bringing raw materials, empty bottles and packaging goods into the plants.

“Also, the storage facilities are full of beer that cannot be shipped out,” Coeck said.

A Belgian union official said it was calling on the company to withdraw its restructuring plan, which would cut about 800 jobs in Europe, including 263 in Belgium. “We will continue with the blockades and will discuss whether to intensify our action,” he said.

In announcing new talks today AB InBev said the possibility of up to 150 early retirement plans and 70 new positions would considerably lesson the impact of the job cuts.

Workers at an Anheuser-Busch InBev brewery in eastern Belgium briefly took some bosses hostage after the world’s largest brewery announced layoffs, local media reported.

The company will cut 800 jobs across western Europe, 10% of its 8,000 workforce in the region. It said the move was a response to falling beer sales, with the layoffs spread across Belgium, Germany, the UK, the Netherlands and Luxembourg.

RTBF radio reported that about 10 managers at the Jupiler brewery were held in a meeting room in an office building located next to the plant.

“We are demanding that the (company’s) senior managers come here and call off the lay-offs,” Marc Devenne, a union representative was quoted as saying by the Belga news agency. Denis Gobert, another union spokesman, later said the managers had been released.

Anheuser-Busch InBev was formed in 2008 when Belgium-based InBev bought Anheuser-Busch.