USA: Craft Brewers struggling mass market brands

The brewers Association announced on October 27 that while mass-market brands struggle to hold their own in 2005, craft beers are booming:

Fully one third of U.S. brewers (450 companies) grew by more than 10 percent in 2004 with regional brewers leading the way. More than two dozen brewers have posted at least four years of consecutive double-digit growth through 2004.

Craft segment growth continues to be strong in 2005 and we forecast an industry-wide increase of 7 percent or more for the year. Many regional brewers report record shipments each month through the summer and we again expect to see a large number of craft brewers with double digit growth for the year.

Today, craft brewers constitute more than 30 of the top-50 brewing companies in the United States. Craft brewers use all-malt formulations to make beers inspired by traditional European brews.

Brewers Association compilations begun in the 1980s show that the craft beer segment has grown steadily over the past ten years and that in 2004 it showed its biggest increase since 1996 7.2 percent segment wide.

The total population of craft brewers rose to a high of about 1,400 in 1997 and has remained within about 50 of that total ever since. Today the U.S. has more breweries than Germany.

Bottom line: While the mass-market brands face significant challenges in the marketplace, craft brewers enjoy steady growth as consumers turn toward the diverse range of flavorful beers offered by this segment of the industry.

The Brewers Association was established in 2005 by a merger of the Association of Brewers and the Brewers' Association of America.

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