Montana’s craft beer industry booming

Posted On September 4, 2014

This article appeared in The Bozeman Daily Chronicle, on Wednesday, August 27, 2014 7:30 pm

LaNette Jones, left, and her husband, Brice Jones, owners of Katabatic Brewing Co., have spent two-and-a-half years researching and remodeling a historic building to open their brewery in Livingston this fall. A recent study found the craft beer industry has more than doubled in size in the past four years.

Jason Bacaj, Chronicle Staff Writer

Posted: Wednesday, August 27, 2014 7:30 pm

Montana’s craft brewing industry more than doubled its workforce over the past four years, according to a study published by the University of Montana’s Bureau of Business and Economic Research.

The number of people working for craft breweries went from 231 in 2010 to more than 480 last year, according to research economist Colin Sorenson.

He also found that the industry’s overall economic impact grew by about 20 percent over 2011 numbers, reaching roughly $60 million in 2013.

The craft brewing industry is also spending more money in Montana, Sorenson said. He surveyed about 50 brewers for the report and found that nearly half of their spending is done in state, spreading their dollars through the construction, retail and health care fields.

The Montana Brewers Association commissioned the study. It follows the first economic impact analysis the research bureau performed on the craft brewing industry in 2012.

“Montana craft beer is very popular,” said Tony Herbert, executive director of the Montana Brewers Association. “The numbers sort of speak for themselves.”

LaNette Jones and her husband, Brice, are counting on continued clamoring for craft beer as they go through the final steps of opening Katabatic Brewing Co. in Livingston. It’s been a two-and-a-half year process from researching industry numbers to renovating the building they’ll occupy.

Jones said that, during that time, people called and emailed to express their excitement over what could be Livingston’s second brewery. Neptune’s Brewery was the first.

The support led the Joneses to launch an online fundraising campaign on the crowdfunding website Kickstarter to raise the $10,000 she says will push Katabatic quickly through the final renovations. The campaign is about halfway over and has nearly reached its fundraising goal, she said.

“I think that’s the most amazing thing,” Jones said.

Jones said the brewery will open regardless of the fundraising campaign’s outcome. She said the Kickstarter campaign is mostly a way for the Joneses to keep others informed of their progress and, hopefully, speed along a process that’s now about four months delayed.

Katabatic’s story underscores Herbert’s interpretation of Montana’s craft beer market.

“People want more of it and we don’t really see any kind of point where this will slow down. Sure, one day it may. But (there) seems to still be potential for continuing growth for the craft beer market in the nation and in Montana,” Herbert said.

Herbert was speaking from the road between meetings with the Alcohol Beverage Coalition. The coalition consists of 16 representatives from across the state’s three-tier alcohol distribution system. The representatives agreed in June to a revised liquor licensing system that would allow for brewers to hold a liquor license and bar owners to hold a brewing license.

Meetings this week were to hash out the specifics of how that looks before the upcoming state legislative session comes around and lawmakers are brought into the conversation.

“We do want to use this information to make sure everybody understands where we are, where we came from and where we’re going,” Herbert said.

Jason Bacaj may be reached at [email protected] or 582-2635.