Study Taps Growing Impact of Craft Brewing on Montana’s Economy

Posted On February 1, 2013

Oct. 30, 2012

 STUDY: CRAFT BREWING HAS GROWING IMPACT ON MONTANA’S ECONOMY

 MISSOULA –

Montana’s 33 craft brewers represent a growing sector of manufacturing activity in the state, according to a new survey and economic impact study by researchers Colin Sorenson and Todd Morgan of The University of Montana Bureau of Business and Economic Research.

According to the report commissioned by the Montana Brewers Association and titled “The Economic Contribution of Craft Brewing in Montana,” the impact of the industry represents more than 430 jobs, nearly $50 million in private-sector sales, $9.8 million in private nonfarm compensation, $1.8 million in government compensation and $1.5 million in state government revenues.

Survey data collected by BBER show the brewing industry in Montana grew rapidly from 2010 to 2011. Production rose 18 percent, sales were up 20 percent, employment was up 39 percent, compensation increased 23 percent and expenditures were up 21 percent. Nearly 97 percent of Montana’s brewers participated in the survey and many reported offering a variety of employee benefits such as health insurance, retirement and paid vacations.

BBER’s study found that while the activity of craft breweries is concentrated in the more populous regions of the state, economic impacts of craft brewing extend into all regions. As of the end of calendar year 2011, there were 12 breweries in northwest Montana, seven in southwest Montana, four in north central Montana, eight in south central Montana and two in eastern Montana.

“These numbers show the tremendous potential for Montana’s breweries to continue to create jobs and wealth in Montana,” said Tony Herbert, executive director of the Montana Brewers Association. “The economic impact of the brewing industry in Montana is large and growing, and the potential for breweries to generate more jobs, more statewide tax revenues and more happy customers should not be underestimated.”

The Bureau of Business and Economic Research at UM is a research center producing economic and industry data for Montana. For more information visit http://www.bber.umt.edu/ or https://montanabrewers.org.

For further information contact Colin Sorenson, research economist, UM Bureau of Business and Economic Research, 406-243-5113, [email protected].

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To view a .pdf of the Report and the Slide Presentation click below:

MT Brewing Economic Impact (Report)

MT Brewing Economic Impact (Presentation)

Craft versus Craft? Think about what you are drinking.

Posted On January 23, 2013

Beer has had roots in this country for centuries. Virtually every Founding Father either made or enjoyed it. To-day, thanks to the ingenuity of small and independent brewers, the U.S. has moved beyond offering only light American lager and now has more beer styles and brands to choose from than any other market in the world.

Montana’s brewers are helping lead the way. Now with over 35 breweries making fine hand craft beer, in 2011 the Montana craft beer Industry represented almost $50 million in economic output, had an employment impact of over 430 Montanans, represented almost $12 million in compensation, and $1.5 million in state tax revenues. Montana has more breweries per capita than all states but Vermont, producing over 100,000 barrels of beer per year.

This is a movement — and one that is growing quite rapidly. In 2011, craft beer grew nationally 13 percent by volume and 15 percent by dollars, with retail dollar value estimated at $8.7 billion. Montana’s craft beer industry grew 18 percent by volume, 39 percent in employment (full and part time), 23 percent in compensation paid, and 20 percent in sales. By mid-2012, the growth has continued and dollar sales for craft brewers nationally were up 14 percent, while volume of craft brewed beer sold hopped 12 percent. Overall, beer sales are responsible for 1.6 percent of the nation’s gross domestic product.

Yet even as craft grows, those who dominate the market are large international conglomerates. A-B InBev, headquartered in Belgium, and SABMiller, headquartered in London, now control 75 percent of the U.S. beer market between them. Heineken and Modelo (Corona) and other imports are 14 percent, and A-B InBev has a deal in place which, if approved by the Department of Justice, would allow them to buy the half of Modelo it doesn’t currently own.

While America’s small and independent craft brewers have reached a record 6 percent market share, they lack the economies of scale and the huge marketing resources of the big brewers. They’ve relied on grassroots efforts, an appreciation for local, and authentic and delicious products to attract their consumer base.

Beer enthusiasts have responded by embracing these breweries and their unique, innovative and flavorful beers, brewed locally by neighbors and friends who are very visibly involved in their communities. They have chosen to support small-business entrepreneurs, who are the embodiment of the American dream. These entre-preneurs are the underdogs bent on reviving a sense of independent craftsmanship.

Noting the expansion of the craft brewers’ niche and also that many beer drinkers are turning away from the mass-produced light lagers that they are historically known for, the large brewers started producing their own craftlike beers. However, they don’t label these faux-craft beers as products of A-B InBev and MillerCoors. So if you are drinking a Blue Moon Belgian Wheat Beer, you are not told it is a SABMiller product. If you crack open a Shock Top, you are not told this brand is 100 percent owned by A-B InBev.

The large brewers also have bought or own 100 percent of smaller breweries like Goose Island, Leinenkugel and Henry Weinhard. They own significant equity stakes in Red Hook, Widmer and Kona breweries. They sell these beers through their strong distribution channels, but market these faux-craft beers as if they were from inde-pendent, locally owned craft breweries.

Today, there are craft breweries in just about every city in the country, lifting the local economies and giving those communities unique products that reflect their native character. Most Americans now live within 10 miles of an independent, locally owned craft brewery. In Montana there now are breweries located in 22 communities, including small towns such as Wibaux (Beaver Creek Brewing), Wolf Point (Missouri Breaks Brewing), and Phil-lipsburg (Phillipsburg Brewing).

This country thrives on innovation, and small-business and craft brewers alike are the epitome of this. The large brewers employ 25,000 people in their stateside brewing facilities and, undoubtedly, in cities like Milwau-kee, Denver and St. Louis, these jobs are important to the local economies. But across the entire U.S., small and independent craft brewers employ more than 103,500 Americans in local, Main Street jobs!

Montanans are known to enjoy their beer, and if you think craft breweries are a good force in America, take the time to familiarize yourself with who is brewing the beer you are drinking.

Is it truly from a brewer that is small (producing less than 6 million barrels of beer a year) and independent (less than 25 percent of the craft brewery is owned or controlled by an alcoholic beverage industry member who is not themselves craft)?

Or is it a product of a large international brewer, capitalizing on the unprecedented growth of the sector to produce a faux-craft beer?

It makes a difference. By supporting small and independent craft brewers across Montana, and the country, we are giving them a chance to thrive in business, create more jobs, boost the economy and compete against the massive corporations that have controlled the market for so long.

Charlie Papazian is the President and Bob Pease is the Chief Operating Officer of the Brewers Association, the trade association representing America’s small, independent brewers. Tony Herbert is the Executive Director of the Montana Brewers Association.

MBA Festival Winners

Posted On October 10, 2012

• Best of Show: Lewis and Clark Brewing Co.’s Red Ale
• Best of the Fest: Lewis and Clark Brewing Co.’s Red Ale
• Best Light Lager: Wildwood Brewing Co. Czech Pils
• Best Amber/Red: Lewis and Clark Brewing Co.’s Red Ale
• Best Oktoberfest: The Front’s Oktoberfest
• Best Dark Ale: 406 Brewing Co’s Brown Porter
• Best IPA: Lewis and Clark Brewing Co.’s Tumbleweed IPA
• Best Light Ale: Tamarack Brewing Co’s Sip N Go Naked Apricot Ale
• Best Wheat/Rye: Wildwood Brewing Co’s Organic White Bark Wheat
• Best Pale Ale: Great Norther Brewing Co’s Frog Hop 2012
• Best Belgian: Blackfoot River’s Montana Style Lambic
• Best Stout: Blackfoot River’s Double Black Diamond Stout
• Best Imperial: Madison River’s Green Emerger Fresh Hop Imperial IPA

Montana Brewers Host 2,400 at 4th Festival

Posted On October 10, 2012

On an absolutely perfect fall day, with no smoke to be seen anywhere, the 4th Annual Montana Brewers Festival went off without a hitch at Caras Park on Saturday, Oct. 6.  76 Montana Made Beers from 21 Montana breweries were enjoyed by 2,400 patrons while 4 bands entertained.  23 new Festival Release Beers were unveiled to the delight of the crowd, and the smiles were on for the entire day.  So good was the event that the Montana Brewers Association has announced that the 5th Annual Festival will be at Caras Park on September 28, 2013.  We hope to bring back the same excitement, enjoyment, and fun, and to do it with even more Montana brewers.  And, we will do a 2013 Festival Release Beer and the brewers have one whole year to build it.   So get ready Missoula, because here we come again!

A special thanks to the brewers, the sponsors, the bands, the food vendors, and the attendees who made this come together for a very special day.

The Beers were judged by the Zoo City Zymurgists;  The Winners are:

• Best of Show: Lewis and Clark Brewing Co.’s Red Ale
• Best of the Fest: Lewis and Clark Brewing Co.’s Red Ale
• Best Light Lager: Wildwood Brewing Co. Czech Pils
• Best Amber/Red: Lewis and Clark Brewing Co.’s Red Ale
• Best Oktoberfest: The Front’s Oktoberfest
• Best Dark Ale: 406 Brewing Co’s Brown Porter
• Best IPA: Lewis and Clark Brewing Co.’s Tumbleweed IPA
• Best Light Ale: Tamarack Brewing Co’s Sip N Go Naked Apricot Ale
• Best Wheat/Rye: Wildwood Brewing Co’s Organic White Bark Wheat
• Best Pale Ale: Great Norther Brewing Co’s Frog Hop 2012
• Best Belgian: Blackfoot River’s Montana Style Lambic
• Best Stout: Blackfoot River’s Double Black Diamond Stout
• Best Imperial: Madison River’s Green Emerger Fresh Hop Imperial IPA

And from Asa Hohman, the President of the Zoo City Zymurgists:  “This was the finest Brewfest I have ever had the pleasure to judge. The quality of the beers that were on display was superb. There were many beers that scored as exellent representations of their stated style and quite a few that were considered world class examples of their stated style. Montana’s Breweries have truly shown themselves to be exceptional. Thanks to all the brewers and staff for making this one of the best brewfests.”

Read this article from the Growler Fills for more information and some nice images.