Craft beer is still growing as a segment of the total beer industry. Like wineries, there is a craft beer brewery in all 50 states. Craft brewing, as a category in the alcohol beverages industry, has only been around for approximately four decades; however, there is no specific event to delineate an official genesis of the industry. In 1859 the Anchor Brewing Company in San Francisco started brewing operations. Unfortunately, until 1965 the company had a sordid history of financial failures in making fine beer. However, since 1965 it has a stellar record of success and is now recognized as America’s first craft beer brewer.
Despite the growth in breweries, the craft beer industry is experiencing significant issues. For example: constantly changing consumer trends; rapid industry expansion; growth in product offerings (this includes new products such as hard cider); distribution restrictions; response to market trends; and, imports. However, in December the new tax law took effect and should free up capital to fund expansion and marketing programs without incurring debt. “CMBTRA (Craft Beverage Modernization and Tax Reform Act-2017) as part of the new tax bill is cutting the excise tax bill in half for the nations small brewers,” reports Bart Watson-Chief Economist for the Brewers Association. That’s a decent chunk of capital for reinvestment. “There are benefits for wine/spirits producers as well.” Continue reading “Is the Craft Beer Rocket Ride Fizzling Out?”