Stan Hieronymus

“Craft” beer sales were way up in 2007. No matter how you want to define “craft” beer we already knew the numbers were going to be good, but the news is still a joy. Details in a moment.

What about 2008? What about the rising cost of ingredients forcing brewers to raise prices just at a time consumers are feeling the impact of a slowing economy?

Well, this news from January:

– Today, Dan Wadel of of Information Resource Inc. told members of the Brewers Association that “craft” beer case sales were up 12% and dollar sales were up 15.8%. That’s not quite the growth rate of 2007, but darn close.

– That’s the best January since IRI began tracking “craft” beer sales in 2001.

– “Brew” Blog reported similar numbers from Nielsen, that the national average weighted case price for craft beers increased by 4.9%.

– “Brew” Blog also quoted from Beer Marketer’s Insights Express:

New Coors prexy Peter Swinburn noted “vibrancy” of US beer biz and that Coors whole portfolio “is sort of singing” these days. Asked if Coors saw any trading down in US, Peter told INSIGHTS “in our portfolio, we don’t see any evidence.” (Miller prexy Tom Long told Mich/Ill distribs last week he saw no trading-down either.) While Keystone Light is growing rapidly, so are other brands in portfolio. “No evidence” that Blue Moon is coming off kind of growth path it has enjoyed.

Yep, we must talk about Blue Moon White again. Dollar sales were up 55% in 2007. It’s sales are within a stone’s throw of Sierra Nevada Pale Ale and Samuel Adams Boston Lager, which are the one-two (in that order) “craft” beer brands.

Wadel mostly discussed 2007 in a presentation he gives BA members twice a year. As a little background, IRI uses scanner data to track sales of consumer package goods in a variety of channels, so does not record every beer sold. Nielsen track slightly differently sales, and neither define “craft” beer like the Brewers Association.

The BA soon will release “craft” beer numbers for 2007, which will be based on actual production reported by the members it classifies as “craft” producers. There will be differences, but in past years they have not been large.

So a couple of more things from Wadel:

– “Craft” beer dollar sales were up 16.7% in 2007, following a 17.9% increase in 2006.
– In the last two weeks of 2007 (Christmas/New Year’s holiday sales) “craft” sales were up 15.8%, versus just a 3.1% increase for imports.

And one which merits considering the advice of Satchel Paige (“Don’t look back. Something might be gaining on you.”):

– Domestic super premium sales, which shrunk in 2006, were up 17.4% in 2007. Domestic premium beers include those from Leinenkugel, Michelob, Killians, Henry Weinhard and, of course, the aforementioned Blue Moon. They sell in the same price range as “craft” beers.

The biggest reason super premiums were up is 2007 newcomer Miller Chill, which had $40.8 million sales in the channels IRI tracks. By comparison Blue Moon White sold $47.8 million and Boston Lager $49.9 million.

When Avery Brewing founder Adam Avery passes through Albuquerque he usually stops at Chama River Brewing, not only because it’s handy to Interstate 25 but because he likes the beers, particularly the hop-accented ones. Try to look surprised.

Last April I met him there for dinner about a week before the Craft Brewers Conference in Austin. He was headed down early to do a little rock climbing in Texas, then to visit outlets that sell Avery beer. His car was totally packed with beer. The trunk was jammed, mixed cases were piled to the ceiling in the back and he front seat was full. (Yes, I wish I’d had a camera.)

You’d have thought there was a desert between here and there.

The conference concluded with a banquet during which each table was supplied with a variety of beers for the meal (each paired with a different course). When there was a break in the action Avery sprang to his feet and dashed past the table we were at (next to his). He returned a few minutes later with arms full of Avery beer, leaving a few bottles at our table “just in case.”

Think about that when you read this from the Avery Monthly Mash (an email newsletter):

Twice a month the entire Avery team gathers on a Friday afternoon to taste beers that were brewed in prior weeks. All employees taste each beer and offer suggestions on improvements and taste (we are on a quest to make perfect beer). Once we have tasted all of our beers, a full-on world of beer tasting ensues, with each person clamoring to put in their two-cents on the perceived qualities of each beer. Anyone who has ventured into the Avery Tasting Room on an early Friday afternoon has undoubtedly seen these tasting sessions in their final throws.

This small oddity of initiation into the Avery crew is actually a sign of our unspoken mantra: the beer comes first. Each extra dollar we earn is first allotted to capital improvements that will assist us in making better beer. If a technique promises to improve the quality of our beer it will be implemented even if it means more work for the brewer and more money to make the beer. In short, the Friday initiation is the first step in the Avery way of ensuring that everyone in the company, especially our newest hires, understands our overriding philosophy about crafting and selling beer.

We would like to extend an invitation to you, our loyal fans, to take part in an initiation session of your own. Come and join us on Wednesday, March 5th for the opportunity to take part in a Hop Education tasting alongside a few of the brewers and staff members of Avery Brewing Company.

Details are on the Avery website events page.

The photo of Adam was taken during the now infamous “Extreme Beer” trip to Belgium that Sam Calagione led two years ago. Thanks to Tomme Arthur for sharing.