CLEVELAND, Ohio – Great Lakes Brewing Company has inched up its ranking of America’s top craft and integrated breweries, according to annual statistics released Tuesday.
Founded in 1988, Ohio’s first craft brewery is the 17th largest craft brewery in the United States, according to the Brewers Association, which represents America’s small and independent craft breweries. It is the 27th largest brewery overall. Each is one spot higher than last year’s ranking for Cleveland Brewery.
The top five craft breweries in 2023 are the same as in 2022.
1. Yuengling and Son – Pottsville, Pennsylvania.
2. Boston Beer Co. – Boston and Milton, Delaware.
3. Sierra Nevada Brewing Company – Chico, California.
4. Duvel Moortgat USA – Paso Robles, California. Kansas City, Missouri. Cooperstown, New York.
5. Gambrinus – Shiner, Texas. Berkeley, California.
“We expect the number of breweries and employment to continue to grow,” said Bart Watson, vice president of strategy and chief economist at the Brewers Association. Additionally, the closing rate remains “relatively low at around 4%,” he said.
Watson addressed media and industry members ahead of an industry address scheduled for next week’s Craft Brewers Conference in Las Vegas. Mr. Watson’s comments are in somewhat contrast to his speech in Cleveland a year ago, which at the time presented a more dire outlook.
Mr Watson said a key aspect of Tuesday’s comments was that product variety/diversification within a brewery’s portfolio was not included in the numbers. This is an important point because many breweries are adding hard seltzers, ciders, and other products. It is said that 650 breweries have distillation licenses.
“Breweries are looking for opportunities there, and I think we’re seeing more breweries trying to become that beverage company. Some of that is driven by consumer demand. We have a diverse customer base that wants different categories of drinks.”
Other findings
• Among Ohio’s top 50 craft breweries, Rhinegeist and BrewDog both showed gains. Cincinnati’s Rhinegeist is No. 22 (up from No. 23), and Canal Winchester-based BrewDog’s U.S. operations are No. 36 (up from No. 38). Among all breweries, Rhinegeist ranks 32nd this year, and last year he was 33rd. BrewDog is 46th this year, moving him up two spots from 2023. Both breweries have retail distribution of multiple products in Northeast Ohio.
• The number of operating craft breweries continued to increase in 2023, reaching a record high of 9,683. During the year, 495 breweries opened and 418 closed. According to the group, the closing rate remains relatively low at about 4%.
• The brewing industry will continue to maintain economic importance: With the addition of breweries and what BA sees as a “continued shift towards hospitality-focused business models,” craft breweries will continue to grow in 2023. The company employed 191,421 people, an increase of 1.1%.
• Volume share of the overall craft beer market increased from 13.1% to 13.3%. This is the proportion of craft beer in the total market. This means that over 86% of the beer consumed in the United States comes from major beer companies such as Anheuser-Busch and Molson Coors, or from major foreign brands.
• Yuengling and Athletic Brewing Co., the latter a non-alcoholic beverage company based in Milford, Conn., posted solid results. Products from both breweries are available in Northeast Ohio.
• “I think we’re going to continue to see challenges in that market,” Watson said of trends in homebrew shops, citing “reduced sales.” He said that may be due to changing consumption patterns, with more people buying online, and increased competition and product diversification in homebrew stores.
He says brewers are getting much better at targeting specific products and styles.
“The concept of what craft is has changed a lot. We don’t define craft beer. We try to define craft producers and be inclusive of the beer they’re making,” Watson said. he said, adding that some consumers are looking for beers with higher alcohol content.
“The biggest change in IPA is the shift to DIPA/Imperial. …IPA is one of those markets where you see waves over time. We certainly seem to have seen a shift away from Hazy (IPA). , that is difficult to quantify.”
Watson was more optimistic than pessimistic in many areas, but noted challenges in certain areas.
“Craft beer is emerging in other parts of the world,” he says. “I think American craft beer still has a very strong position globally.”
But he added: “Given the increased competition globally, it’s probably more difficult than it was five or 10 years ago to ship to markets like the UK, where there are so many great local breweries. There will be,” he added.
Other challenges include draft sales and on-premises sales, which have “been established as a pattern,” he said. “Am I still worried about the future of draft beer? Yes, very much. … I think that’s one of the things that craft brewers need to continue to work on.”
While the industry has seen slow sales at brick-and-mortar stores, taprooms and brewpubs are “generally doing well,” he said.
State statistics are expected to be released in the near future, but it’s unlikely that Ohio’s position will change much from a year ago. Ohio is home to more than 420 breweries, consistently producing beer that ranks in the top 10 in volume.
I work on the Life Culture Team and cover topics related to restaurants, beer, wine, and sports. See the cleveland.com directory for my recent articles. WTAM-1100’s Bill Wills and I will be talking about food and drink on Thursdays at approximately 8:20 a.m. Twitter and IG: @mona30. My latest book, co-authored with Dan Murphy, is Joe Thomas: Not Your Average Joe (Gray & Co.).
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