My favorite numbers
The craft beer industry numbers are in for 2008, and given the current economic climate, we are pleased. It appears that you have continued to buy craft beer despite losing your jobs – nice work, everyone. In order to establish my credibility as MNB?s resident geek, here are my favorite numbers from the Brewers Association?s annual sales report and why they matter:
- Craft beer volume was up by 5.8% for the year, and dollar sales were up 10.5%. What does this mean? Craft beer is still growing, and not just because brewers are increasing their prices. Demand for craft beer is still ticking up and people are buying more good beer. In fact, my back of the envelope calculation says that in the second half of the year (which was a lot crappier than the first), volume grew by around 5% and dollar sales were up double digits. Not bad in a shrinking economy.
- Craft beer made up 4.0% of the market last year up from 3.8% in 2007. Suck it, InBev.
- Overall beer sales grew by 1 million barrels last year, and nearly 500,000 were craft beers. That means that 4% of the market accounts for half of the growth in beer sales.
- Operating costs for small breweries increased 39% last year. Probably the most alarming statistic in the report, it?s a sobering reminder that in order to stay in business, you can?t just sell more beer. You have to sell it profitably.
Overall, some good news here and some cause for concern ? we?ll be keeping our eyes on the numbers for the first half of 2009.
Nice post. I vote Jeff posts more often.