UPDATED: Numbers now reflect revenue from kegs, as opposed to barrels.
The last 12 months has seen exciting growth and upheaval in the craft beer community. It wasn’t just the craft beer boom that stole headlines, but legal battles and craft beer acquisitions. Over the past month, there have been a few handfuls of craft beer acquisitions, by the likes of AB InBev, MillerCoors and Duvel. Last week, MillerCoors announced they were buying St. Archer’s out of San Diego.
Many have become concerned that these purchases are diminishing and consolidating craft beer, thereby hurting the industry’s greatest asset, it’s diversity, as well as leading to a potential monopoly of distribution.
The purchases of key breweries were just a drop in the bucket of the total production of the craft beer community, but we wanted to see just how big/small a drop it was, to put it all in perspective. How much do these buyouts account for of total craft beer volume? How many employees are now considered, according to the Brewers Association, non-craft brewery employees? We’ve broken down the buyouts into three key categories: 2014 barrel production, 2014 Annual Revenue and Employees.
I’ve made the following assumptions to get the brewery revenue projections:
*80% wholesale/20% inhouse sales
*$300 in revenue per keg sold wholesale
*$800 in revenue per keg sold in-house
These assumptions are based off input from breweries and research from ProBrewer and Beer Advocate Forums. Again, these are assumptions, but they are educated assumptions and applied across the board, so it gives us a working snapshot of what the impact of revenue of these recent acquisitions had on the craft brewery community in 2014 figures.