craft brewers - craft – onafhankelijke brouwers … · •in late 2017, u.s. congress passed the...
TRANSCRIPT
![Page 1: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/1.jpg)
Craft BrewersSustaining Excellence and Growth
![Page 2: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/2.jpg)
Brewers Association is…
![Page 3: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/3.jpg)
Government Affairs
• In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act
• Brewers that produce less than 2 million barrels annually (virtually all BA members):• Will be taxed at a rate of $3.50/barrel on
the first 60,000 barrels of beer produced
• And $16/barrel on any further barrels produced up to 6 million barrels
• (Above 6 million barrels, the excise tax remains $18/ barrel).
Craft Beverage Modernization and Tax Relief Act
![Page 4: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/4.jpg)
![Page 5: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/5.jpg)
• Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales).
An American craft brewer is small, independent, and traditional.
Craft Brewer Definition
Small
Independent• Less than 25% of the craft brewery is owned
or controlled (or equivalent economic interest) by a beverage alcohol industry member that is not itself a craft brewer.
Traditional• A brewer that has a majority of its total beverage
alcohol volume in beers whose flavor derives from traditional or innovative brewing ingredients and their fermentation. Flavored malt beverages (FMBs) are not considered beers.
![Page 6: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/6.jpg)
These are historic beer times!
• 1978 = 42 brewing companies
• 2017 = 6,000+
• Tens of thousands of beer labels
• United States = the most diverse beer market
![Page 7: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/7.jpg)
The U.S. Craft Beer Market
![Page 8: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/8.jpg)
Big Picture
• Growth in a competitive market
• Growth in a crowded marketplace• 2 openings a day• Large brewer
acquisitions• Crowded distribution
• Small still healthy• Still growth out there
![Page 9: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/9.jpg)
Domestic Imports Craft US Shipments
All figures in ‘000s of bbls (1 bbl = 31 gallons)
1981 177,000 5,221 35 182,290
2016 144,500 33,366 25,200 207,100
Change -28,500 28,145 25,165 24,810
![Page 10: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/10.jpg)
0
1000
2000
3000
4000
5000
6000
7000
2012 2013 2014 2015 2016 2017
Number of Active Breweries, 2012-2017(est.)
![Page 11: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/11.jpg)
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000Bonded U.S. Wineries, 1993-2017
![Page 12: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/12.jpg)
Where are all the U.S. breweries?
Red = MicroBlue = Brewpub
![Page 13: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/13.jpg)
Sales
• Craft brewers up 5% by volume at mid-year. Up 8-10% in retail dollar sales.
• (Includes on-premise and at the brewery sales)
• For full year 2017, Total beer is down -1% in volume / up 1% in dollar sales in IRI.
![Page 14: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/14.jpg)
![Page 15: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/15.jpg)
![Page 16: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/16.jpg)
![Page 17: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/17.jpg)
![Page 18: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/18.jpg)
2017 Dollar Share & GrowthIndependent Craft
Source: IRI Group
$ Sales Share Growth RateIPA 28.2% 17.5%SEASONAL 11.8% -6.0%OTHER PALE LAGERS
11.5% 9.1%
PALE ALE 8.9% 8.9%VARIETY 7.2% 1.3%AMBER ALE 4.2% -8.4%GOLDEN ALES 3.7% 40.6%
![Page 19: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/19.jpg)
• States with above average craft share (2015), 2016 growth = 1.9%
• States with below average craft share (2015), 2016 growth = 7.7%
![Page 20: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/20.jpg)
Key Issues
![Page 21: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/21.jpg)
What We Want
• Fair access to market for all U.S. breweries
• Taprooms• No one brewery owner should become
the “one stop shop” for beer• “Consumer choice, not producer
power, should determine what beers go on the truck.” - Senator Klobuchar (MN)
• Continued growth and demand for our members beers.
Choice
Quality• Breweries that are driven by
quality, with a safe work environment who are sustainability minded and who advance beer.
![Page 22: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/22.jpg)
2.315 2.748 8.400 18.125 24.355
33.366 53.500
92.600
425.000
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
400.000
450.000
*Boston Beer Co. *Yuengling Heineken USA Constellation *Small &Independent
Imports Molson Coors AB InBev U.S. AB InBev Global
2016 Barrels: U.S. Beer(000's of bbls)
*Included in S&I Total
![Page 23: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/23.jpg)
![Page 24: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/24.jpg)
BrewersAssociation.org/seal#IndependentBeer
Independent Craft Brewer Seal
![Page 25: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/25.jpg)
BrewersAssociation.org/seal#IndependentBeer
Independent Craft Brewer Seal
• Many beer drinkers want to know who makes their beer
• 81% of craft beer appreciators indicated “independent” and “independently owned” as the most recognized terms presented in a 2017 Nielsen/Brewbound Harris Poll
• Tool for enthusiasts to easily differentiate beer from craft brewers and beer produced by other, non-craft companies
Adoption
Purpose
• 2,872 breweries have adopted the seal, as of January 16, 2018
![Page 26: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/26.jpg)
Take Craft Back
Anthem
![Page 27: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/27.jpg)
Research Grants
• 2015: $150,000• 2016: $380,000• 2017: $730,000• 2018: $915,000 (budgeted)
Funding
![Page 28: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/28.jpg)
![Page 29: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/29.jpg)
Best Practices Guide to Quality Beer
![Page 30: Craft Brewers - CRAFT – Onafhankelijke Brouwers … · •In late 2017, U.S. Congress passed the first major tax reform legislation since 1986 – Tax Cuts and Jobs Act • Brewers](https://reader031.vdocuments.mx/reader031/viewer/2022020303/5b5e08d87f8b9a310a8b9abc/html5/thumbnails/30.jpg)
Brewers Association Staff