Beer Marketer's Insights

Beer Marketer's Insights

Russian River’s 15th annual release of Pliny the Younger double IPA drummed up $4.2 mil in economic impact for Sonoma County this year, a notable boost with added help from recently opened $50 mil Windsor brewing complex, reported Santa Rosa Press Democrat. With 2d location in place, co was able to double production of Pliny the Younger to 350 bbls and host visitors at both breweries, paper noted. From Feb 1 to Feb 14, Russian River drew in 24,700 visitors spanning across 42 states and 14 countries. Sonoma County Economic Development Board surveyed 2,400 visitors to determine full economic impact, including spending on hotels, meals, gas etc. Interestingly, attendance was essentially split 50/50 between co’s two locations. Pliny the Younger sold for $5.25 per 10oz pour, and customers were limited to 3 “special beers” within 3-hr period. Customers spent $59.38 per brewery visit on avg, survey found.

BrewDog is promoting from within its org while shifting around exec team in US and abroad. Tanisha Robinson, who was hired as CEO of BrewDog USA in Jul 2017, will move to global role as Chief Disruption Officer, while Allison Green shifts from Global Chief of Staff to US CEO, co announced. Notably, Tanisha’s “initial projects include rapidly scaling the DogHouse hotel concept, canned cocktails, CBD beverages, and supporting the Australian brewery launch,” per release. Recall, BrewDog also recently hired Adam Lambert as chief rev officer last Dec, then touting “big” plans for 2019, including 4-5 new states, new brands, packages, brewpubs and more (see Dec 11, 2018 issue). Co expected to brew 25K bbls and reach $18.5 mil in revs in US in 2018, Tanisha then told Market Watch. It grew 268% in IRI for 52 wks thru Feb 17 to become one of top-30 craft growth brand families in scans (see Feb 26 issue). So after slower start in US, BrewDog starting to make some headway.

JuneShine Hard Kombucha Hires Ex-Ballast & Green Flash Vet as VP of Sales In San Diego, ambitious hard kombucha co, JuneShine, hired industry vet Laura Slayter as its VP of Sales, co announced. Recall, after quickly reaching max capacity of 2000-2500 bbls/yr, JuneShine acquired Ballast Point’s Scripp Ranch facility with 100K bbls/yr of capacity just 6 mos after launching, planning to expand thruout CA, PacNW and other major west coast cities in 2019 (see Feb 12 issue). Notably, on top of more recent roles held at Green Flash and Solti, Laura worked at Ballast Point as VP of natl accts when Ballast Point was “roughly the same size as JuneShine and located in the Scripps Ranch facility,” she noted in release. This time around , “I plan to replicate and improve that journey with an even better, more energetic sales team,” she added. (Gotta note, that journey was one that resulted in $1 bil acquisition.) JuneShine is currently sold in “over 200 accounts throughout San Diego county and select accounts in Orange County and Los Angeles.” Laura will aid JuneShine’s expansion plans thruout CA and beyond.

Above partnership between Boulevard and 20th Century Fox marks another step-change in increasingly high-profile sponsorships and collaborations between craft brewers and non-beer brands. Brewers have long worked with local retailers, brands and bands to connect to new audiences. But many recent deals take that to another level. Music connections remains especially common, like Boulevard’s with Tech N9ne, also above, and often come about organically. A beer-loving artist seeks out a brewer to have an exclusive beer in support of a new album or, especially, a tour, for instance. In fact, many of the origin stories of the selected projects here feature brewery folks forging or working existing connections.

This launch comes just a couple months after 20th Century Fox partnered with another brewery, Calif’s Three Weavers, to brew beers to be served in unique escape-room style experiences supporting the release of Alita: Battle Angel. Fox created these immersive gaming experiences, called “Passport to Iron City,” set in fictional city from the film, in LA, NYC and Austin. Three Weavers, part of CANarchy collective recall, created 3 separate beers to be served at the events, scheduled to run thru the spring. Core Three Weavers brands, plus new Oskar Blues IPA also available to participants.

And Fox isn’t the only major entertainment co to clear such a partnership recently. Sony Pictures Television announced late last week that, in tandem with Breaking Bad actor Dean Norris, it’s working with Calif’s Figueroa Mountain Brewing to produce Schraderbrau lager this spring. The beer is a riff on Norris’ character’s homebrew from season 2 of the hugely popular series. Norris, who seems to have pushed the project forward, started hinting that something was in the works on social media earlier this year, spurring a couple of entertainment-focused publications to find that Sony had filed paperwork for the beer. Fig Mtn will release Schraderbrau in 22oz bottles starting in May.

Recall, Sony sued Knee Deep Brewing last yr to stop it from selling its Breaking Bud IPA (see vol 9, no 38). As we noted then, numerous breweries have employed in-jokes and references to tv, film and music when naming and creating artwork for their beers (long a homebrewer’s trope). But the more actual tv shows, filmmakers and musicians partner up with breweries, the more likely those folks may come after breweries for dipping into their intellectual property without permission. In that respect, the partnerships also suggest a bit of a coming-of-age moment or maturation for craft.

Gigantic/Hellboy; Georgia Music & Sports; More Food Pairings Many participants in these projects bill them as collaborations rather than sponsorship deals, and in many cases they easily dovetail into a brewery’s biz. Take Gigantic Brewing out of Portland, OR and its series of Hellboy beers coming out throughout 2019. The brewery has employed comic-inspired pop art branding from the get-go, so partnering with Hellboy publishers Dark Horse Comics to a series of 6 beers to celebrate the comic’s 25th anniversary fits right in for the brewery. Releases will appear every 7 weeks, each at 6.66% ABV and limited to 666 cases, associated with different Hellboy characters and feature label art created by Dark Horse, natch.

Out in Georgia, breweries are striking up partnerships left and right to build audiences. On the one hand, there’s biggest city brewer SweetWater and its collab with Atlanta Hawks player Dominique Wilkins, Human Highlight IPA, a specialty release that dropped earlier this yr. But then there’s more extensive projects from local musicians Nappy Roots, as the Atlanta Journal Constitution spelled out last month. The Grammy-nominated band released Kentucky Mud, a nitro chocolate milk stout named for a song, brewed by Arches Brewing in Hapeville, GA. The band just finished its Great American Beer Run Tour, during which it visited breweries and shot footage for a forth-coming reality tv show. In fact, Nappy Roots had previously worked with Atlanta’s Monday Night Brewing and 2 others for separate beers since and hopes to build its own brewery in home-state Georgia.

Speaking of repeat-partners, NY’s Captain Lawrence teamed up with ice cream/cake-franchiser Carvel for another pair of beers, following up on last year’s Fudgie the Beer release. This yr, co brewed up a paid of Cookie Puss beers, a milkshake IPA and a pastry stout, named after a brand of Carvel ice cream cakes. Both co’s based just outside NYC. It follows in footsteps of plenty of other food-related partnerships, like Harpoon’s partnership with Dunkin, Keegan Ale’s IHOPS and Noon Whistle’s work with Planter’s/Kraft Heinz (see vol 9 no 90 and 98 from last fall).

All of these projects can come with potentially big upside of getting brewery’s brand name out in bigger way, especially with mainstream press coverage galore. But again, the risk is in successfully transitioning a consumer interested in a one-off into a repeat buyer of a brewery’s other beers. Then too, cycling big one-off pops presents its own challenges in future years. But, by and large, these and many more breweries determining the benefits outweigh the risks.

By the time 20th Century Fox releases the latest X-Men film, Dark Phoenix, in early June, Kansas City’s Boulevard Brewing will already have a sense of whether it’s got a hit on its hands with new yr-round IPA, Space Camper. The beer, launched in Dec, is getting first-of-its-kind “exclusive beer partner” status for the coming summer action flick, Boulevard marketing veep Natalie Gershon explained to Craft Brew News. Packs of the new beer sporting Dark Phoenix branding and discount codes for tickets start shipping next month, followed by extensive support on- and off-premise, Boulevard and Fox announced today. But that isn’t even the half of all the activity Boulevard has lined up this spring as it works hard to get some of its mojo back after a few tough yrs (see Mar 1 issue). It aims to bring new energy behind flagship Unfiltered Wheat, expand relevance and reach new folks via multiple partnerships (outside of Fox and especially locally) and enter key growth areas like lower-ABV (low-cal) beers and canned cocktails with a number of new launches.

Fox Partnership & Space Camper Support; Rocket to #3 or 4 Boulevard Brand? Dubbed a “cosmic IPA” on packages, Space Camper first appeared late last yr as new yr-round entry into “juicy IPA” sub-style, boasting tropical fruit flavors at 5.9% ABV. But new Dark Phoenix packaging, where canned 6-pk boxes clearly connect to film artwork, “ships in April,” Boulevard sales veep Bobby Dykstra told us. Those packs include a Fandango discount code for $3 off tix to the movie, Natalie explained. Co also releasing 16-oz single serve cans designed specifically for venues and events. Indeed, Boulevard secured placement for Space Camper as featured drink at 300 AMC Theaters outfitted with MacGuffins Bars, the first beer to be featured in program, co announced. Space Camper orders for April were about “30% larger than our first month,” an essentially unheard of phenomenon for a new Boulevard beer launch, at least in recent memory, Bobby explained. There’s “such enthusiasm” for the partnership, his team secured “unparalleled, for us,” chain support this Spring. So far, growth of the brand driving a 1% shipments gain, with revs up stronger yr-to-date, Bobby shared. Incremental Space Camper gains so far offset by elimination of one of co’s seasonal lines this yr.

That said, Boulevard already supporting Space Camper release in unique ways. From the start, co tied the brand to a fictional super-heroine (part of the parallel that helped drive connection to Fox movie release). “Save the Earth; it’s the only planet with beer,” reads brand tagline. Along those lines, Boulevard also partnering with Arbor Day Foundation, so Space Camper sales will help the org plant 10,000 trees. Plus, co launched online video game at spacecamperIPA.com and “worked with a local cosplayer” (someone who dresses up like a character from a movie, show, or videogame) to dress up as Space Camper character and visit events across US, Natalie shared. After all of this energy and effort, it’s “fair to say that our expectation is that [Space Camper] grows to be our number 4, if not our number 3 brand for the brewery in its first year,” Bobby expects. That’s behind flagship Unfiltered Wheat, Tank 7 and Pale Ale.

“Better for You” Entry, Easy Sport at 4.1% ABV, Hits Shelves in April That ain’t only new year-round release from Boulevard. Up next: Easy Sport, a “recreation ale” launching in April. The “best tasting better-for-you beer,” as Natalie touted, clocks in at 4.1% ABV with 99 calories and 4.5 carbs. Brewed with tangerine peel and sea salt, Boulevard bills it as “slightly tart.” No precise, traditional beer style attached to brand sell sheets, tho combo of salt and tart akin to a fruited/citrus gose. Sell sheets play up “electrolyte” additions during brewing (note sea salt a big source of electrolytes). Co betting bigger on Space Camper, but notable that Easy Sport in a style/occasion niche that many other brewers putting much more emphasis on.

Local Focus: Wheat Redesign, “Unfiltered Whitt,” Lou Bou Returns Boulevard also bringing attention to flagship Unfiltered Wheat in 2019. Once 75% of co’s biz, “today it represents about half of that of our volume,” prexy Jeff Krum told CBN. Wheat is “suffering like many other flagships,” Natalie acknowledged, so co had to ask itself, “are we set up to appeal to the drinker of tomorrow?” Answer initiated review of branding, leading to early-2019 launch of “bolder, simpler package design,” Natalie said. New design returns to largely black & yellow color scheme familiar to early Wheat packs, while also calling out “hazy” as key descriptor. A coming Wheat-centric ad campaign that’s “big...for us,” she noted, includes out of home and digital Hulu ads, leveraging long-time partnership with Royals MLB game after-show on Fox, plus “a ton of digital and social.” Co making a “big push on Wheat this year in a very targeted market,” she said.

Boulevard to build on KC-based energy behind Wheat by striking sponsorship deal with Royals 2nd baseman Whitt Merrifield. Its “Unfiltered Whitt” campaign, what co thinks is first MLB player sponsorship for craft brand following recent decision by players org to green-light alc bev sponsorships, kicks off in May. This “authentically Kansas City” campaign, as Natalie called it, also comes with a “charity component,” natch.

But co also looking beyond local sports to reach new folks. Lou Bou, a collab beer made with Tech N9ne, a KC-based musician, also returns this spring after smaller launch last yr. The beer also plays on wheat flagship, adding pineapple and coconut to the mix. Boulevard brewed about 2,000 bbls for April launch, a “big release for us at the brewery,” Bobby confirmed. Beer 1st appeared last summer when Tech N9ne headlined Bouelvardia music fest in town. Co “teased it out a little further in the fall at a handful of venues,” and “sold well,” Bobby said.” So now it’s getting “nationwide limited release” to help support Tech N9ne’s tour, which kicks off April 11 in Omaha.

“When we have taken the beer outside the venue, it has been very quick to evaporate,” Bobby noted. And “Tech has a very loyal fan base” that “is not necessarily the Boulevard fan base,” he said, “especially as you start to look outside of Boulevard’s home market.” So such a partnership can be good for both the co and for craft more generally, introducing the beer to new audiences. While Tech was “incredibly hands-on in the process,” Jeff pointed out, he also acknowledged the “risk” of leading conversations about Boulevard with something other than the beer. It “has to be about the beer first,” so co is “very cautious to make sure that we talk about the beer first,” he said of both Lou Bou and Space Camper projects.

More, More, More: 30th Anniversary; KS Stores; Fling But wait, there’s more. A number of other changes, both internal and external, could set up Boulevard for a better 2019. Consider: co will celebrate its 30th anniversary this fall. It’s 2nd largest state, Kansas, will start to allow beer over 3.2% alc by weight (about 4% ABV) and up to 6% ABV in grocery and c-stores starting April 1. Bobby sees “some incremental volume there, for people who are not used to being confronted by beer” in those channels, and it could be “significant.” It’ll keep releasing new specialty, barrel-age beers to appeal to the most engaged craft consumers. Then there’s Fling, co’s line of canned cocktails, also rolling out in April (see Mar 1 issue). So in short, there’s “no moss growing on us,” Jeff quipped.

MO’s Urban Chestnut joins the likes of Lagunitas in pursuit of non-alc “craft beverage production” with new Sparkling Hop Water, set to launch this summer in 4pk 16oz cans, co announced. Sparkling Hop Water is “unsweetened and naturally free of both alcohol and calories,” described as an “all-occasion beverage full of floral and piney hop flavor,” per release. Urban Chestnut has been selling versions of hop water at its taproom since making some for festival that unexpectedly was cancelled last spring. “We were blown away by how well it was received and has been selling, so we’ve continued to produce it and keep it on tap ever since,” VP of sales Jon Shine stated.

Notably, co promises to “explore” CBD-infusions and other “natural ingredient” infusions such as Ginseng, Jon added. And co cites use of hops for “medicinal purposes since medieval times,” and research that suggests hops “have mild sedative properties, can improve blood circulation, and may one day lead to the development of cancer therapies” as well. Gotta note, Lagunitas HOP Sparkling Water rolled out nationally this year, co already eying international oppys, CEO Maria Stipp shared with CBN earlier this year (see Jan 25 issue). Yet co initially focusing on on-premise accounts looking to expand their non-alc beer selection, as well as utilize brand as a cocktail mixer.

Now that baseball season has begun, here come the stadium beer list articles. And looks like the Chicago Cubs’ Wrigley Field has “an all-star lineup” of brews in 2019, Chicago Tribune reported. This is Wrigley’s “most varied and ambitious menu to date,” sez paper, welcoming Three Floyds and Beygle Brewing, as well as “an expanded presence from Half Acre, Revolution, Lagunitas and Cruz Blanca, the brewpub co-founded by chef Rick Bayless.” Indeed, Half Acre will “more than triple its availability of Daisy Cutter Pale Ale in 16-ounce cans” and Pony Pilsner will be on tap at two locations. And Revolution’s new Every Day-Hero Session IPA, Anti-Hero IPA, and 16oz cans of Fist City Pale; Three Floyds Gumballhead Wheat 16oz cans, Zombie Dust pale ale draft; and Begyle Blonde 16oz cans will be available at different locations in the ballpark as well.

Recall, AB struck multi-year “megadeal” with Wrigley Field beginning in 2014, replacing Pabst’s Old-Style sponsorship, paper reminds. In the past Wrigley has featured Goose Island, including with exclusive Cubs-themed beers. Yet Lagunitas IPA replaced several Goose Island handles back in 2017 and last year Bell’s Oberon and “a smattering of Revolution and Half Acre” were made available as well. AB will still account for “about half the beer available” and is adding fast-growing Mich Ultra to list of offerings. Plus, Goose still has 10 different beers available. But Wrigley clearly lookin’ for more diversified offerings, including a couple of AB’s Virtue Cider brands and a “sparkling water/tequila hybrid” called Sauza Agua Fuerta from Beam Suntory’s tequila brand. This yr’s list was built with “market share data, insights and analytics…to make truly informed decisions about what Cubs fans want to enjoy at the game,” concessions management partner Levy Restaurants said in statement.

Several more notable hires in craftland of late. The latest – Craft Brew Alliance hired ex-New Belgium CEO, Christine Perich, as Chief Financial and Strategy Officer starting Apr 1, 2019, co announced. Recall, CBA’s previous CFO Joe Vanderstelt abruptly resigned in Jul 2018 after 3.5 yrs with the co to join Ocean Spray Cranberries, per LinkedIn. But this opening gave CBA an oppy to hire for a “broader” role beyond “just a financial specialist,” CEO Andy Thomas explained to CBN. And Christine fits the bill. Indeed, Christine spent 16 yrs with New Belgium, rising to CFO, COO and eventually president/CEO during her tenure. Plus, Christine has spent the last few years starting her own consulting biz in broader beverage space, serving as CEO for WTRMLN WTR for a short time, as board member to HealthAde Kombucha and Laws Whiskey House, and working for AB’s ZX Ventures brand, Owl’s Brew, among other projects. This coincides nicely with CBA’s newest initiative via pH Experiment to study consumer trends and launch innovative new products beyond traditional beer brands, both Christine and Andy acknowledged. “Lifting my head outside of beer…I have a different perspective now too,” that should help to “meld nicely into this role,” Christine told CBN.

Christine will keep her board seat on HealthAde, but “a lot of other…contracts were coming to a natural close,” thru her consulting biz. Andy initially reached out to Christine in Nov and “when we started talking again” in early 2019, the timing worked out well, both explained. Christine will remain based out of Ft Collins and will travel as needed. Plus, she’ll be right by AB Ft Collins brewery that’s contract brewing up to 300K bbls/yr of CBA brews.

Ex-HUSA vet Lesya Lysyj Joins Boston Beer as CMO; Sam Adams Just 20% of Boston in Scans Then too, Boston Beer named Lesya Lysyj as CMO earlier this week, filling a slot vacant since last July when Jonathan Potter left (as sibling pub INSIGHTS Express reported). She is only the 2d CMO that Boston ever had. Recall, Lesya had an effective 3-yr run as HUSA’s CMO under Dolf van den Brink. She left to become prexy of Weight Watchers North America and most recently was prexy of Welch’s Foods US. Boston Beer CEO Dave Burwick also spent time at Weight Watchers, points out AdAge, tho at separate times.

While Boston Beer’s biz increasingly shifts toward FMBs and hard seltzers, co continues to give Sam Adams most of its marketing attention and $$ allocation. As founder Jim Koch has commented several times, Sam Adams is still considered the heart and soul of Boston Beer, and co continues to spend disproportionately against its beer brands in hopes of turning things around. Yet Sam Adams declining at steeper rates in early 2019. Down 15% YTD thru Mar 16 in Nielsen All Outlet, including down 20% for latest 4 wks, as core brands decline, and Sam 76 unable to cycle last year’s launch. Sam Adams fell to just 20% of total Boston scan volume for 4 wks. Truly Spiked & Sparkling’s volume (334K cases, +216%) is nearly as large as total Sam Adams volume (362K cases) for period. Much of Lesya’s work likely to be on Sam brands regardless. But lots of work to be done. Total Boston is up 10.6% yr-to-date thru Mar 16 in Nielsen, even with declines from both Sam Adams and Angry Orchard. Slowed to +6% for 4 wks.

Cutwater Appoints AB’s Shreyas Balakrishnan as New GM; Previous Elysian GM Not long after AB’s acquisition, Cutwater Spirits appointed 15-yr AB vet, Shreyas Balakrishnan, as new GM, Cutwater’s Earl Kight shared. Shreyas, just 37 yrs old, was most recently GM for AB’s fastest growing craft brand, Elysian. Yet he also worked for AB as a brewer for “many years,” and on distribution side as well. Plus, he has mechanical engineering degree and MBA from Washington University. So “he gets it,” sez Earl. But before transitioning to Cutwater, Shreyas will remain acting Elysian GM until his replacement is found, AB spokesperson confirmed with CBN.

Stone Brewing “demonstrated that it has a moderately strong infringement claim against Miller,” US Dist Ct judge ruled earlier this week, “but not that it would suffer irreparable harm” without a preliminary injunction. So, he refused to give Stone an injunction. Lack of irreparable harm alone enough to withhold injunction, judge pointed out. But even considering other arguments, Stone would come up short “because Stone merely reiterates its largely unfounded consumer and non-consumer confusion allegations.” Stone will have to show harm and confusion at trial.

Recall, Stone sued MC last yr, claiming that MC’s rebrand of Keystone Light, with labeling that increased focus on word STONE, violated Stone Brewing’s trademark. Judge did multi-factor analysis to determine the “likelihood of confusion” and found some weighed in Stone’s favor, some in MC’s favor, some neutral. He determined that Stone’s mark is “commercially strong and recognizable” and “entitled to the strong protection afforded to suggestive marks.” Also, since both brands distributed nationally and appear “in close proximity” and in direct competition on store shelves the “proximity” factor “weighs in favor of Stone.”

Looking at “similarity of marks,” MC wanted retailers to display Keystone brand so consumers see the word STONE, but not KEY, judge said. But, “what Stone conveniently fails to mention is that a consumer picking up, or even just looking at a Keystone can see the full name KEYSTONE LIGHT (twice), as well as the bright-yellow house mark of Coors.” Perhaps even more damaging, MC found a tweet from Stone that read: “[The] pictures we show aren’t important…. We know anyone, including a judge, is plenty able to turn a can & see the entirety of it for themselves.” MC won that factor. Similarly, on issue of “degree of care” among buyers, judge agreed with MC that “there are sufficient differences in the cans, packaging and price between Stone and Keystone that consumers would likely know the difference.”

Factors that were neutral included MC’s intent, whether MC and Stone used same mktg channels and likelihood of expansion. On issue of “actual confusion,” Stone and MC each provided surveys from experts purporting to show an “extraordinary level of confusion” among consumers (Stone’s expert) or “no likelihood of consumer confusion at all” (MC expert). These were a wash, “if not slightly for Miller,” judge determined.

Taking all those factors into account, judge found “Stone’s trademark infringement claim against Miller is moderately strong.” But, again, Stone had to show irreparable harm and it didn’t. In fact, “because Stone is hard-pressed to determine that it would suffer any harm absent a preliminary injunction,” the judge observed, “it falls far short of demonstrating it would suffer irreparable harm in the absence” of a preliminary injunction.

Then too, MC filed counterclaims vs Stone, seeking declarations that it can continue to use STONE and STONES to advertise Key Light, and more. The judge refused to dismiss MC counterclaims, another defeat for Stone. Net-net: the case continues, barring settlement.

Both Sides Claim Victory Early signs suggest settlement unlikely. Indeed, Stone put out statement claiming victory for “true independent craft beer.” Noting judge “confirmed ‘Stone’s mark to be commercially strong and recognizable,’” Stone declared again that “MillerCoors is infringing on the brewery’s trademark rights. “That’s even while judge explicitly wrote: “Miller has not been found liable of trademark infringement.” Stone did cite Judge’s determination that its claim “moderately strong” and vowed to present “evidence of the significant impact that MillerCoors’ campaign has had” on Stone and “the massive sales which Keystone has accumulated since reviving itself using Stone’s trademark” at trial. Court’s decision “confirms” that MC “should be ashamed of what they have been doing,” said co-founder Greg Koch. CEO Dominic Engels called it “a win for Stone.” Meanwhile, MC said it was “pleased” with judge’s decision not to grant an injunction, which shows that Stone’s motion “lacked merit.” MC said too: “We always used our Keystone trademark in an appropriate manner, and have easily refuted claims to the contrary.”

Brewers Assn’s list of “50 Fastest Growing US Craft Breweries” in 2018 includes brewers spanning 27 states, with median size of just 1,350 bbls of in-house production, ranging from 50 bbls to more than 40K bbls, that collectively grew from under 70K bbls to over 170K bbls in 2018, BA announced yesterday. List includes 2 regional brewers (15K bbls or above), 35 microbreweries and 13 brewpubs, collectively representing 10% of total BA craft growth, with a median growth rate of 163%. Indeed, vast majority of these fast growing breweries are still tiny by comparison – fastest growing brewer listed, IA’s Lake Time, was under 250 bbls total in 2017, according to BA. But 2018’s fastest growers collectively represent nearly 2x more of craft’s total growth than 2017 class. (Editor’s note: only BA-defined craft brewers that opened prior to Dec 31, 2016, produced their volume in-house, and reported their 2018 production to the BA plus validated their 2017 production were eligible for this list, org explained.)

Tree House at 48K Bbls, Old Nation at ~20K Bbls, Largest Among Fast Growers While BA doesn’t share which brewers are what size at this time, MA’s Tree House and MI’s Old Nation stand out as largest brewers listed by far, and the only two brewers over 15K bbls. Recall, Tree House produced a sizable 48K bbls in 2018, its first full year in new 50K sq-ft facility, co told Boston Globe earlier this year (see Jan 15 issue). And Old Nation initially expected to reach 20K bbls in 2018, mostly thru growth of its M-43 hazy IPA. It was one of the top-25 craft growth brand families nationally in scans, with $$ and volume up 170% for 52 wks thru Feb 17, 2019 in IRI multi-outlet + convenience data (see Feb 26 issue). Old Nation was #33 fastest growing co on BA’s top-50, and Tree House was #45, suggesting Old Nation grew closer to 150% all channel and Tree House a little more than doubled. These two made up more than 1/3 of the top-50 fastest growers’ volume gains. Both cos sell only within their given home states. Yet Old Nation is making serious headway in chains via distribution statewide with Imperial Bev, while Tree House sales are derived entirely on-site.

Industrial Arts Tripled to 9,500 Bbls; 19 Cos Up 3X or Better; Other Top Volume Gainers Then too, NY’s Industrial Arts essentially tripled production to 9,500 bbls, co shared with CBN late last yr. It was listed as #19 fastest growth co, meaning #1 thru #18 brewers all tripled production or better as well. Yet Industrial Arts had 3d largest volume gain among top-50 fast-growers, we estimate. Among other top volume gainers, Fins Big Oyster Brewpub in Rehoboth Beach, DE had 2d best growth trend overall, growing off base of 1,125 bbls in 2017, per BA stats. Lone Pine in Portland, ME, posted 5th fastest growth trend, suggesting co more than tripled from ~1500 bbls in 2017. Added capacity clearly helped Lone Pine, as it acquired Sebago’s previous brewery as turnkey facility in Oct 2017, when it was just 16 mos old.

RI’s Whalers Brewing more than doubled to over 7,000 bbls, BA data suggests. Cincy-based brewer, Fifty West brewpub, produced 6,500 bbls in 2018, according to Cincy Business Courier, and was 49th fastest growing co. Recall, it was largest new craft vendor by far in the first half of 2018 scan data, with an incremental $214K in IRI Foodstores YTD thru Jul 8, IRI’s Patrick Livingston shared last year during BA Power Hour (see Vol 9, No 84). Sacramento’s New Glory and Borderlands in Tuscon, AZ were both among top-10 fastest trends, and among top volume gainers listed, we figure. WI’s Third Space grew 156% to 5,171 bbls, gaining over 3K bbls last yr, according to WI Dept of Revenue stats. And Chattanooga, TN’s Hutton & Smith posted 16th best trend of the bunch, improving from 50th best trend in 2017, and growing nearly 3K bbls, we estimate.

Regional Highlights: CA Had 6 Top Growth Cos; 4 from IL, 3 from CO, OR, MA, PA, WI, FL; 2 from ME, MI, NC Top-50 fastest growing brewers range from 27 different states, yet over half are from just 8 states with higher concentration. CA had 6, the most of any other state, including 4 in the top-21. IL had 4 brewers on the list, all from Chicago area (2 from Chicago proper), ranging from Illuminated Brew Works at #20 to Une Année Brewery at #50. And six different states had 3 top fast-growth cos, including highly established craft states such as CO and OR, and other burgeoning craft mkts such as MA, PA, WI and FL. View the complete list of fast growing brewers via link above.