The City of Brotherly Love served as the gathering ground for some 13,000 brewers and beer industry folks who spent several days in May toasting growth, tasting beers, attending seminars and, in a sense, circling their wagons.
The 2016 Craft Brewers Conference and BrewAmerica Expo celebrated the growth of craft beer in the United States through seminars, a trade show and events around Philadelphia. Photo by Lee Graves
The record attendance at the Craft Brewers Conference and BrewAmerica Expo reflected the meteoric rise of a sector of the beer industry that has enjoyed double-digit growth in eight of the past 10 years. That growth amounted to 13 percent by volume last year, according to the Brewers Association, of Boulder, Colo., the not-for-profit trade group that supports small and independent brewers in the U.S.
“By any objective measure, the state of the union is very strong,” said Bob Pease, president and CEO of the association. “But we cannot, we must not rest on our laurels.”
The proposed purchase of SABMiller by Anheuser-Busch InBev, the continued acquisition of craft breweries by ABI and other elements in the business landscape provoked images of storm clouds, castle walls and embattled breweries among the week’s speakers. Pease said the association is fighting to ensure that craft brewers have fair access to resources and markets. “We are right in the middle of that battle, and we must not cede an inch,” he said.
In a “state of the industry” address, Bart Watson, the association’s chief economist, noted that the rate of growth dropped from 2014, when the increase was 18 percent by volume. Craft beer’s share of the market in 2015 was 12 percent by volume and 21 percent by dollars. The hottest part of the sector was among microbreweries (those selling less than 15,000 barrels annually), which grew 24.2 percent. IPAs and seasonals are still the top styles, and pilsners, golden ales and other sessionable styles may be “the next frontier.”
While many breweries are expanding and seeking wider distribution, the benefits of staying small and local were stressed in one seminar. Natalie Cilurzo, co-owner of Russian River Brewing Co. in California, said that success is measured not just by volume. Russian River produces about 16,000 barrels annually, is wholly owned by her and her husband, Vinnie, and limits much of its distribution. She advised brewers not to lose the joy of their passion and to strike a balance between business and life in general.
“Know yourself and know what you’re doing and why you’re doing it,” said panelist Jeff Althouse, CEO of Oakshire Brewing Co. in Eugene, Ore.
The conference, which will be held in Washington, D.C., in 2017, included sessions on a range of topics—historic beer styles, technical aspects of brewing, marketing strategies, understanding trends, raising capital, ensuring consistent quality and improving the science and lexicon of food and beer pairings.
In addition, a major program to document the modern history of brewing was announced at the conference. The Smithsonian’s National Museum of American History is launching a three-year initiative to collect, document and preserve memorabilia and other elements of brewing history to tell the story of craft brewers and the brewing industry and their impact on society over the past 30 years. The effort, which is part of the Smithsonian Food History project, is made possible by a donation from the Brewers Association.
The museum already has a collection dating from 1870 to the 1960s. The rise of craft brewing warrants its own chapter, given that the number of breweries in the country has surpassed the previous high of 4,131 in 1873. The new initiative will include artifacts, oral history, at least two public programs a year and other features.
“The craft brewing revolution in America has had a profound social, cultural and economic impact on this country,” Pease said.
The conference concluded May 6 with the World Beer Cup, which featured competition from breweries in 55 countries. Several Virginia breweries came away with medals: Devils Backbone Brewing Co., gold medals for Schwartz Bier and Reilly’s Red; Crooked Run Brewing, gold for Supernatural; Lickinghole Creek Craft Brewery, silver for Coconut Delight; Lost Rhino Brewing Co., silver for Rhinofest; Pale Fire Brewing Co., bronzes for Salad Days and Red Molly; Hardywood Park Craft Brewery, bronze for Ruse; O’Connor’s Brewing Co., bronze for O’Connor’s Dry Irish Stout.
