News

Craft brewer definition updated

January 3, 2011

The board of directors of the Brewers Association, which represents the majority of U.S. brewing companies, has voted to change its designation of “small” craft brewer. The board also revised its bylaws to reflect this change.

Now, the term “small” refers to any independent brewery that produces up to 6 million barrels of traditional beer. Previously, production requirements were 2 million barrels. The change went into effect in the bylaws on Dec. 20.

The BA’s bylaws outline two classes of membership – professional packaging brewers and associate membership – both of which have been redefined to reflect the new qualifying barrelage of 6 million. The changes stem from an exponential growth in the industry.

“Thirty-four years have passed since the original small brewers tax differential defined small brewers as producing less than 2 million barrels,” said Nick Matt, chair of the Brewers Association board of directors and chairman and CEO of F.X. Matt Brewing Company. “A lot has changed since 1976. The largest brewer in the U.S. has grown from 45 million barrels to 300 million barrels of global beer production.”

Craft brewed beer market share is now approximately 5 percent of the U.S. beer industry, and growing.

According to recent research released by Mintel, craft beers have increased in popularity particularly in the past five years. 

Domestic beer remains the clear favorite, followed by imported varieties; but 33 percent of all beer drinkers aged 21 and up are drinking more domestic craft beer.

Only a modest percentage of beer drinkers (13 percent) say they prefer domestic craft or microbrew beers (compared to 43 percent for domestic and 22 percent for imported), but an impressive 59 percent said they like to try them, and 51 percent would try more craft or microbrew beers if they knew more about them.

“Craft beer is most popular with the 25 to 34-year-old crowd, so manufacturers would be wise to target this demographic and educate them more about artisan beers,” said Garima Goel Lal, senior analyst at Mintel.

Some pizza chains, such as UNO, have taken note, offering more craft beer choices on the menu.