2015 Stewardship Report Operating 2015 NUMBERS U.S. brewery AT A GLANCE 2,921 members 22 Million 50 Page views on BA websites States where homebrewing is legal

+ 70,000 Attendees at BA events

46,141 American Homebrewers Association® members Operating U.S. brewery members 71,926 Combined circulation of Zymurgy and The New Brewer 157 & 33 House (157) and Senate (33) co-sponsors of H.R. 2903 and S. 1562, legislation to recalibrate brewer excise taxes 165,119 Copies of Brewers Publications books sold

Of operating Credentialed % breweries are journalists attending 70 members 800+ BA events One of the Brewers Association’s goals is to be a transparent organization. This stewardship report serves as a summary of Brewers Association board, committee, staff and member activities in the 2015 calendar year. The Brewers Association is a 501(c)(6) not-for-profit trade association.

Purpose To promote and protect American craft brewers, their beers and the community of brewing enthusiasts. Mission

By 2020, America’s craft brewers will have more than 20 percent market share and will continue to be recognized as making the best beer in the world. We will: • Promote access to raw materials and markets. • Support research and advances in safety, sustainability, education, technology and raw materials. • Exercise political influence to secure fair legislative and regulatory treatment. • Foster the commitment to quality. • Educate consumers to understand and champion beer from craft brewers. • Cultivate new ideas and a commitment to a living and active beer culture among craft brewers, homebrewers and beer enthusiasts. Core Values & Beliefs

At the Brewers Association we believe in: • Promoting and celebrating the small, independent, traditional and innovative culture of American craft brewers. • Vigorously defending our industry and providing craft brewers with a unified voice. • Fostering transparency within our own organization. • Supporting and encouraging the responsible enjoyment of beer. • Providing stewardship for 10,000 years of brewing history. • Educating brewers and consumers about the diversity, flavor and quality of beer. • Improving the economic health of American craft brewers. • Working to build a collegial community of brewers, homebrewers and brewing enthusiasts. • Promoting ethical and legal trade practices. • Building relationships and collaborating with our industry partners.

Equal Opportunity: Brewers Association is an equal opportunity employer and does not discriminate on the basis of race, color, national origin, gender, religion, age, disability, political beliefs, sexual orientation, or marital/familial status.

Photos © Brewers Association

4 Brewers Association | 2015 Stewardship Report BrewersAssociation.org BREWERS ASSOCIATION Professional Membership

Allied Trade & Member Education Craft Beer Retailers Professional Members As of December 31, 2015, Distributors 70% of U.S. operating breweries were Brewers Association members. Individual Membership Development Members U.S. operating brewery members of the Brewers Brewers Association grew from 2,447 in 2014 to 2,921 in 2015. Association Membership The New Brewer The Brewers Association produced six bimonthly issues focused on Structure technical brewing, government affairs, operations, marketing and management features. A redesign of the magazine debuted with the September/October issue. Brewery Members The Brewers Association Communications committee includes a subcommittee to discuss The New Brewer content and long-term direction. The New Brewer is available in online format to members as Brewers Association  The New Brewer online. This convenient resource offers easy access to Professional Membership back issues from 2000 to present.

Beer Industry Statistics The Brewers Association’s Beer Industry Production Survey (BIPS) yields a comprehensive collection of annual production numbers for breweries 7,862 in the United States. Every brewery in the nation is asked to participate * in this annual project. The survey is the basis for the statistics that the Total Members Brewers Association provides to members and media. The results of the *as of 12/2015 survey are released at the Craft Brewers Conference as well as in the industry review issue of The New Brewer and on BrewersAssociation.org.

The BA conducts an annual hop usage survey. The results of the survey are released in the raw materials issue of The New Brewer and serve to inform dealers and growers about the specific needs and shortfalls experienced by craft brewers.

The Brewers Association also conducts a biennial comprehensive survey of America’s craft brewers to compile brewery operations information specifically for small and independent brewers. The Brewery Operations Benchmarking Survey (BOBS) establishes and shares industry Circulation benchmarks, providing a valuable set of tools to BA members including salary, operations, financial and production information. 20,125 The association also produces state-by-state economic impact reports on a biennial basis. These reports are based on information collected 15% increase during the BIPS and BOBS surveys and support government affairs work from 2014 at the state and federal levels.

BrewersAssociation.org Brewers Association | 2015 Stewardship Report 5 Craft Brewer Defined: An American craft brewer is small, independent and traditional.

Small Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual sales). Beer production is attributed to the rules of alternating proprietorships.

Independent Less than 25 percent of the craft brewery is owned or controlled (or equivalent economic interest) by an alcoholic beverage 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.

The BA also partners with external data companies to provide valuable insights to member breweries. In 2015 these included a craft consumer survey conducted with Nielsen and the Brewers purchase of market scan data from IRI Group. These data purchases allow BA members Association Forum access to collective information they might not be able to obtain as individual companies.

BrewersAssociation.org BrewersAssociation.org is the definitive online resource for professional craft brewers, media 18,017 and beer industry organizations. The website provides statistics, updates on industry growth Participants and information on government affairs—both legislative and regulatory—to the media, (8% increase from 2014) members and potential new members.

The BA website also offers an expansive and growing selection of members-only content, including technical data on hops and malt production, industry statistics, a message board and Power Hour webinar archives. Members can also view marketing resources and brewery survey data. Over the course of 2015, BrewersAssociation.org saw more than 3.5 million page views—a 22% increase from 2014.

Power Hour Professional E-Conference Series The Brewers Association presented eight hour-long educational seminars (webinars) in 2015 for members, featuring guests Danny Brager (Nielsen), David Currier (Bell’s Brewery, Inc.), Reva Golden (University Corporation for Atmospheric Research), Ian Hughes (Anheuser–Busch, Inc.), Matt Meadows (New Belgium Brewing Company), Kevin Reed (CraftWorks Restaurants & Breweries, Inc.), Peter Reidhead (GuestMetrics), John Stier (Antea Group), Megan Winter (Fisher & Phillips, LLP), Neil Witte (Duvel USA) and Dan Wandel (IRI).

Topics covered in 2015 included: • Best Management Practice: Selection of Protective • On-Premise Insights for Craft Brewers Clothing for Brewery Workers • Brewing Wage and Hour Violations • Mid-Year 2015 Beer Category and Craft Beer Review • 2014 Craft Beer U.S. Market Review • Getting Inside the Mind of the Craft Beer Consumer • Draught Beer Quality for Retailers • Sustainability Benchmarking: Identifying Best Practices to Improve Operational Efficiencies and Profitability

Craft Brewers Conference & BrewExpo America® More than 11,000 professionals attended Craft Brewers Conference in Portland, Ore. where they networked and participated in more than 80 seminars across 11 tracks. The keynote session featured anthropologist and noted leadership expert Simon Sinek, author of Leaders Eat Last. BrewExpo America provided the opportunity to shop for equipment and services from 600 exhibiting companies over two-and-a-half days.

The Brewers Association presented Steve Dresler with the Russell Schehrer Award for Innovation in Craft Brewing, Dave and Diane Alexander with the Brewers Association Recognition Award and Brook Bristow with the F.X. Matt Defense of the Small Brewing Industry Award.

6 Brewers Association | 2015 Stewardship Report BrewersAssociation.org BREWERS ASSOCIATION Government Affairs

Legislative In February 2015, the Brewers Association hired its first full-time lobbyist in Washington, D.C. Federal affairs manager Katie Marisic was hired to help grow the Brewers Association’s political advocacy and grassroots efforts. Her day-to-day activities consisted of meeting with staff and members of Congress to advocate for the Brewers Association’s legislative priorities on Capitol Hill, encouraging membership in the House and Senate Small Brewers Caucuses and raising the profile of craft brewers and the Brewers Association in Washington, D.C.

In 2015 the association successfully advocated for favorable reforms related to bond requirements and extended filing periods for small beverage alcohol producers. This legislation was passed in the year-end tax extenders bill.

Specifically, Section 332 of the bill provides that: 1. Small producers which reasonably expect to be liable for less than $1,000 in federal excise taxes for the calendar year, and which were liable for less than $1,000 in such taxes in the preceding year, need only file their taxes once annually (by the “14th day after the last day of the calendar year”); 2. Small producers with excise tax liability between $1,000 and $50,000 would now be required to file their excise taxes quarterly; and 3. Bonding requirements for small producers with less than $50,000

in excise tax liability are removed. « In December, Brewers Association CEO Bob Pease testified in front of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights about In June 2015, the Brewers Association transitioned its support from the the potential impact the proposed AB-InBev acquisition of Small BREW Act, legislation that would lower the federal excise tax for SABMiller could have on the craft brewing industry.

domestic craft brewers producing fewer than 6 million barrels a year, to the « Small Brewers Hill Climb In June 2015, 150 state guild representatives and small Craft Beverage Modernization and Tax Reform Act (CBMTRA), legislation brewers representing all 50 states + D.C. conducted some 315 individual Congressional meetings to discuss that would reduce the federal excise tax for all breweries, wineries and the contributions that their businesses and the industry distilleries, and create modernizations to Tax and Trade Bureau regulations. make to their communities. The Brewers Association worked closely with members of Congress and their staffs to build a strong coalition of alcohol industry members to support the bill.

Like the Small BREW Act, CBMTRA seeks a recalibration of the small brewer excise tax rate on the first 60,000 barrels to $3.50/per barrel and also reduces the upper tax rate to $16 per barrel on beer production above 60,001 barrels up to 2 million barrels for domestic brewers with an annual production of less than 2 million barrels. In addition, it would lower the federal excise tax rates for all breweries that produce more than 2 million barrels of beer a year from $18 per barrel to $16 per barrel on the first 6 million barrels. At the end of 2015, there were 157 House sponsors and 33 Senate sponsors of H.R. 2903/S. 1562, the Craft Beverage Modernization and Tax Reform Act.

BrewersAssociation.org Brewers Association | 2015 Stewardship Report 7 BREWERS ASSOCIATION

Advocacy The Brewers Association hosted two fly-ins for brewery members to visit Washington, D.C. to meet with their legislators and staff. These meetings were an opportunity for brewery owners and brewers to share their stories about how they started their businesses and the impact they have on their local communities, and to discuss how Congress could help the craft brewing industry continue to grow through legislation such as the CBMTRA. In March, 33 brewery representatives from across the country came to Washington, D.C. to meet with 145 congressional offices, 50 of which were member level meetings. In June, 150 brewery representatives from across the country met with 315 congressional offices, 153 of which were member level meetings.

In September, members of the Brewers Association attended the Beer Institute’s annual fly-in to lobby in support of the CBMTRA. Other attendees from glass packaging, can manufacturing, and hop and barley growing associations lobbied with Brewers Association and Beer Institute members.

In April, the Brewers Association launched a grassroots action website that allowed brewers, brewery owners and suppliers to contact their members of Congress through an online email form. The two-step process gave participants an easy way to ask their legislators to sign onto legislation that would lower the federal excise tax for the craft brewing industry. More than 3,000 brewery owners, employees and suppliers contacted their members of Congress asking them to support the Small BREW Act and the CBMTRA.

House and Senate Small Brewers Caucuses There were 36 members of the Senate Bipartisan Small Brewers Caucus and 205 members of the House Small Brewers Caucus as of December 2015. The House Small Brewers Caucus is one of the largest special interest Caucus groups in Congress.

CEO Bob Pease and federal affairs manager Katie Marisic both spoke at briefings attended by House and Senate staff about the need for a federal excise tax reduction for the craft brewing industry.

The Brewers Association helped the House and Senate Small Brewers Caucuses arrange meetings to educate Hill staff about craft brewing. They featured: • Kim Jordan of New Belgium Brewing Company and Steve Hindy of Brooklyn Brewery discussing how they started their breweries and their plans for the future. • Gary Glass, the BA’s American Homebrewers Association director, talking about the politics and growth of homebrewing throughout the years. • Former TTB labeling specialist Battle Martin discussing labeling requirements for the brewing industry.

Other Activities Throughout the year, the Brewers Association hosted bipartisan events and tastings for members of Congress and their staff. The association also helped to facilitate fundraising events for key members of Congress who are supportive of the craft brewing industry.

8 Brewers Association | 2015 Stewardship Report BrewersAssociation.org Legislative Receptions Brewers Association Continued In 2015, the Brewers Association Support of State Associations hosted two Capitol Hill Congressional receptions, the Celebration of American Craft Beer reception in June and the Holiday Cheers reception in December. These craft beer and Vermont New food pairing events drew members of Hampshire

Connecticut Congress and staffers from both the Road Island House and Senate. Both featured beer

from 48 BA small brewery members D.C. from across the country.

Support Your Local Brewery Support Your Local Brewery is a communication network that informs beer enthusiasts about issues that impact small brewers and organizes grassroots activities to defend the interests of small brewers. The BA Staff Visit network grew to more than 132,000 BA Consultation BA Staff Visit and direct contacts and over 1.6 million Consultation total contacts by the end of 2015.

State Brewers Associations The Brewers Association continued its support of state associations with meetings at Craft Brewers Conference, Great American Beer Festival® and the 2015 Washington, D.C. Legislative Hill Climb. Members from all 50 states climbed the Hill this year, and a record 20 guilds participated in the Support Your Local Brewery Guilds Pavilion at the 2015 GABF. Ten BA staffers attended 48 guild events in 30 states, as well as multiple national and regional guild meetings in 2015.

Regulatory Alcohol and Tobacco Tax and Trade Bureau (TTB) The Brewers Association submitted a second request to the Tax and Trade Bureau regarding formula exemption for 48 separate commonly used ingredients in the brewing process. TTB approved a large majority of those ingredients for exemption.

The Brewers Association signed onto an alcohol industry coalition letter to the U.S. Senate Committee on Appropriations requesting full funding of the Administration’s TTB budget request for fiscal year 2016.

Food and Drug Administration (FDA) The Brewers Association signed onto an alcohol industry coalition letter in response to FDA guidance relating to restaurant menu labeling requirements mandating calorie and nutritional information for alcohol beverages. Final guidance is expected in the first half of 2016, with an implementation date of December 1, 2016.

Brewers Association staff participated in several stakeholder meetings on a proposed rule regulating spent grain to ensure that small brewer issues were given consideration in both the final rule and in the development of agency guidance. A final rule was issued that requires no additional CGMPs (current good manufacturing practices) or preventive controls relating to brewer’s spent grain, but does require sanitary conditions for holding and transporting spent grain.

BrewersAssociation.org Brewers Association | 2015 Stewardship Report 9 BREWERS ASSOCIATION Export Development Program

In 2015, the Brewers Association received $600,642 from the United States Department of Agriculture (USDA) Market Access Program.

The BA’s Export Development Program (EDP) began in 2004 with a grant from the USDA’s Market Access Program. Breweries pay an annual subscription fee to participate in EDP activities.

Objectives include: • Educating international trade and media about the quality and diversity of products offered by the U.S. craft beer industry and about U.S. craft beer culture • Informing EDP member breweries about opportunities for their products in key international target markets • Complementing the industry’s own efforts to increase international distribution • Taking a lead position on disseminating the message on quality beer • Helping all Brewers Association member breweries to increase sales in domestic and international markets

Educating International Trade and Media • American Craft Beer Ambassador to Europe: In 2015, Sylvia Kopp spearheaded American craft beer education and promotional activities in Europe. She led the BA’s expanded presence in festivals and competitions, and conducted trade and consumer seminars in Europe. • European Media Coverage: Lotte Peplow (Peplow PR) assisted the BA with generating media exposure for American craft beer in the United Kingdom and other key European markets. Since the BA retained Lotte in 2014, the EDP has seen a significant increase in European media coverage on American craft beer. Most notably, Lotte played a key role in getting influential members of the media to attend a food and beer pairing lunch at Kitty Fisher’s and a master class at The Beer Academy in London. • Executive Chef for the Brewers Association: Adam Dulye coordinated and presented a beer and food master class at Imbibe Live! trade show and hosted a beer and food pairing lunch at Kitty Fisher’s in London. • Presentations at International Conferences: The BA presented on American craft beer at the Society of Independent Brewers’ BeerX conference and the Cerveza Mexico trade conference.

Informing EDP Members About Market Opportunities • CBC/GABF seminars: 2015 seminars covered export opportunities in Brazil, Canada, Peru, Taiwan and Vietnam, as well as beer logistics.

Complementing Industry Efforts to Increase International Distribution • Trade Shows: The EDP offered product exposure opportunities at trade shows including the American Craft Beer Experience (Tokyo & Osaka), Barcelona Beer Festival, Braukunst Live! (Munich), Brau Beviale (Nuremberg), Cerveza Mexico Beer Festival, Great British Beer Festival, Imbibe Live! (London), Stockholm Beer and Whisky Festival and the Vancouver Craft Beer Week Festival. • Competitions: EDP supported American craft beer entries in the Australian International Beer Awards, Brussels Beer Challenge, European Beer Star and Stockholm Beer Competition.

Helping All BA Members Increase Sales in Domestic and International Markets • EDP fostered widespread media coverage for the craft beer industry in domestic and international publications.

10 Brewers Association | 2015 Stewardship Report BrewersAssociation.org Technical Programs

Brewery Safety Training In 2015, the BA launched a free, online brewery safety learning resource. Video and testing content was developed by Grand Valley State University (with funding provided by MIOSHA, along with Michigan craft brewers). Ten courses show tasks within a small brewery, including grain handling, mashing, boiling, keg cleaning, bottling and others. Courses contain eight to 10 videos, mid-course questions and post- course quizzes to measure learning. Certificates of completion are available for each course. At year end, 1,569 users had completed 3,899 courses, or roughly 2.5 courses per user. The BA will add several more courses in 2016.

The Safety subcommittee also published best management practice (BMP) documents related to confined space entry and protective clothing for brewery employees. Several more BMPs are planned for release in 2016.

Sustainability Benchmarking and Manuals In 2015, the association developed two new sustainability manuals on green building and wastewater that will be published in early 2016, and expanded the brewery sustainability benchmarking program, helping members to benchmark their resource usage with an eye toward greater profitability through reduction of resource consumption. The 2015 program included 80 breweries (10 brewpubs, 42 microbreweries and 28 regional breweries) from 31 states.

Technical Committee Under the leadership of chair John Mallett, the BA Technical committee grew in breadth and depth to a total of five subcommittees: Draught Beer Quality, Quality, Safety, Supply Chain (formerly known as Pipeline) and Sustainability.

Ambassador Program The BA engaged Matt Stinchfield as safety ambassador and Dick Cantwell as quality ambassador. Both gave multiple presentations at state brewers guild meetings, communicating brewery safety and quality program information to members. These programs will continue in 2016.

Technical Grants The Brewers Association administered 10 research grants totaling approximately $140,000 for research and supply industry sponsorships focused on ingredients important to craft brewers. Topics included studying disease in the Cascade hop variety, developing malting barley varieties better suited to all-malt beer production, sustainability-related agricultural practices, and several others. The association will administer 22 grants totaling more than $400,000 in 2016.

BrewersAssociation.org Brewers Association | 2015 Stewardship Report 11 BREWERS ASSOCIATION Craft Beer Program In 2015, the Craft Beer Program worked to educate the public and support member breweries by sharing information on small and independent craft brewers through member programs, data dissemination, seminars, tastings and media relations.

CraftBeer.com CraftBeer.com provides the inside scoop on the U.S. craft beer movement. The website offers numerous resources for enthusiasts and retailers. It is home to CraftBeer.com Beer & Food Course, American Craft Beer Week®, Support Your Local Brewery program, CraftBeer.com’s annual list of Great American Beer Bars, CraftBeer.com’s Beer 101 Course and the most extensive U.S. brewery finder and cooking with craft beer online recipe database.

In 2015, CraftBeer.com saw more than 2.9 million visits, more than a 40% increase from 2014. It also had over 4.7 million page views and enjoyed 58,000+ Facebook followers and 45,000+ Twitter followers.

Marketplace Presentations The Craft Beer Program conducted tastings and presentations for beer lovers, distributors, retailers Program also hosted desk-side and on-premise tastings and journalists to further their understanding of for journalists throughout the year. The Rosen Group sends small and independent craft brewers, and presented seasonal craft beer samples on behalf of the Craft Beer craft beer and food pairings along with marketplace Program to top-tier journalists four times per year. trends. Presentations and tastings included: American Homebrewers Association National Homebrewers Beer & Food Conference, Beer Bloggers Conference, Big Beers, In 2015, the Craft Beer Program continued to advance Belgians & Barleywines, Craft Brewers Conference, beer pairing and the demand for craft brewed beer by Culinary Institute of America, Great American Beer updating the CraftBeer.com Beer & Food Course. This Festival®, Nightclub & Bar Show, Pizza Expo, SAVORSM: free, 65-page course was written with culinary institutions An American Craft Beer & Food Experience and more. and beer educators in mind. Via the program’s work, along with executive chef Adam Dulye, the overall goal is to have American Craft Beer Week® more culinary institutions lead in beer and elevate their American Craft Beer Week (ACBW) is a nationwide platform education to equal that of wine. Additionally, 2015 saw to celebrate our country’s beer culture and small and close to 4,000 downloads of this free resource from chefs, independent craft brewers. In 2015, the program saw more retailers and brewers. See CraftBeer.com/culinary. than 2,000 posted events in the official ACBW calendar and celebrations in all 50 states. Additionally, American Media List for Brewery Members Craft Beer Week’s Facebook page exceeded 65,000 likes. Up-to-date media lists containing thousands of beer, food, CraftBeer.com continues to promote more than 50 other wine and business contacts are available to U.S. brewery U.S. beer weeks. members at BrewersAssociation.org. Each brewery member can request one state list, as well as the national list, once Media at BA Events per year. Nearly 1,000 journalists were credentialed for key BA events including Craft Brewers Conference, GABF and SAVORSM: Craft Brewer Pavilions An American Craft Beer & Food Experience. The BA supported craft brewer pavilions at National Grocers Association, National Beer Wholesalers Statistics and Media Relations Association, International Pizza Expo and Nightclub & Bar The BA publishes statistical press releases that share vital Show, giving small and independent breweries exceptional information on the craft brewing segment. The Craft Beer opportunities to serve craft beers to industry attendees.

12 Brewers Association | 2015 Stewardship Report BrewersAssociation.org Events Great American Beer Festival® In 2015, GABF had 750 breweries pouring their beers at the largest-ever festival—both in terms of area (more than 300,000 square feet) and attendance (60,000). The public had the opportunity to sample more than 3,800 beers in the festival hall— another record-breaking number. In the competition, 6,647 beers from 1,552 breweries were judged across 92 categories. In its 29th year, the 2015 competition surpassed all previous participation records, exceeding 2014’s record-setting competition.

The festival also featured a new section called Meet the Brewer, where roughly 100 brewery booths were staffed exclusively by brewery employees. The Farm to Table Pavilion returned with a new name: Paired. The tasty format—craft beers paired with small bites—stayed the same, while the number of participating brewery/chef collaborating teams increased by 50% to 21.

GABF continues to provide educational opportunities such as the State Guild/Support Your Local Brewery Pavilion, Brewers Studio Pavilion, Beer & Food Pavilion and BeerX: The CraftBeer.com Experience. Pavilions offered educational opportunities in the main hall during all sessions, covering a myriad of topics.

BrewersAssociation.org Brewers Association | 2015 Stewardship Report 13 BREWERS ASSOCIATION

SAVORSM: An American Craft Beer & Food Experience Part of the BA mission is to promote small and independent craft brewers and their craft brewed beers to audiences around the country. SAVOR elevates craft beer by focusing on craft beer and food pairings.

In 2015, SAVOR returned to the National Building Museum in Washington, D.C. Over the course of two nights, 4,000 attendees, including media, sampled a selection of craft beers from 76 small and independent brewers, paired with food from a menu designed by executive chefs Adam Dulye and Kyle Mendenhall of the Brewers Association and The Kitchen, respectively. Attendees were personally served by the faces behind the brands.

The event continues to draw media and consumer interest and returns to Washington, D.C., June 3-4, 2016.

14 Brewers Association | 2015 Stewardship Report BrewersAssociation.org Allied Trade Partners Contributions to the Brewers Association The Allied Trade contributes significant financial support and technical expertise to the Brewers Association, including: • Membership dues in the Brewers Association. • Advertising in The New Brewer, Zymurgy, Craft Brewers Conference program, Great American Beer Festival® program and AHA National Homebrewers Conference program. • Sponsorship of the Great American Beer Festival, World Beer CupSM, Craft Brewers Conference, AHA National Homebrewers Conference, National Homebrew Competition and other programs and services. • Participation in technical forums, Power Hour presentations, Craft Brewers Conference seminars, committees, magazine content and key performance guidelines development. • Helping brewers make better beer and manage their companies more effectively by providing valuable services and products that meet small brewer needs. • Participation in BrewExpo America® at Craft Brewers Conference, North America’s largest beer industry trade show. Six hundred companies exhibited at the 2015 BrewExpo America, providing direct customer access to products, demonstrations and representatives.

Brewers Publications Brewers Publications supports the mission of the Brewers Association by publishing books of enduring value for amateur and professional brewers as well as titles that promote the understanding and appreciation of American craft beer by consumers.

Revenue generated by Brewers Publications’ titles was approximately $1.6 million. New titles in 2015 were Modern Homebrew Recipes: Exploring Styles and Contemporary Techniques by Gordon Strong and Quality Management: Essential Planning for Breweries by Mary Pellettieri. Amazon sales neared $1 million in net revenue.

Brewers Publications’ top sellers through National Book Network were: 1. How to Brew by John Palmer (#3 overall for National Book Network, a key distribution partner) 2. Designing Great Beers by Ray Daniels 3. For the Love of Hops by Stan Hieronymus 4. Yeast: The Practical Guide to Beer Fermentation by Chris White and Jamil Zainasheff 5. Malt: A Practical Guide from Field to Brewhouse by John Mallett BP Book Sales 6. Radical Brewing by Randy Mosher Revenue in 2015 7. Water: A Comprehensive Guide for Brewers by John Palmer and Colin Kaminski 8. Modern Homebrew Recipes by Gordon Strong (debut) 9. American Sour Beers by Michael Tonsmeire $1,603,700 10. The Compleat Meadmaker by Ken Schramm

BrewersAssociation.org Brewers Association | 2015 Stewardship Report 15 BREWERS ASSOCIATION

American Homebrewers Association®

Membership in the American Homebrewers Association finished the year at the highest level in the organization’s history, up 4.2%. Membership was at 46,141 at year end.

Zymurgy® The Brewers Association produced six issues of Zymurgy magazine in 2015. Circulation finished the year at more than 51,000 copies per issue, representing a 4% increase in copies per issue since 2014. Distribution includes AHA members, BA brewery and allied trade members, newsstands and homebrew supply shops.

Zymurgy Apps The AHA’s mobile apps, complemented by eZymurgy, provide offline access on both Apple and Android devices. Like eZymurgy, the apps offer all issues of Zymurgy dating back to the January 2000 issue. AHA members enjoy access to 16 years (97 individual issues) of Zymurgy magazine online and with the apps.

HomebrewersAssociation.org HomebrewersAssociation.org provides a fun, rich user experience through accessible, informative content and community tools that allow users to learn from each other and share their knowledge. Over the course of 2015, the site saw nearly 4 million visits, a 17% increase from 2014.

National Homebrew Competition The AHA’s 2015 National Homebrew Competition had 7,663 entries from 3,170 homebrewers located in 50 states, the District of Columbia and 12 other locations around the world. The AHA awarded the best homebrewers for their efforts at the conclusion of the National Homebrewers Conference. Over its 37-year history, the National Homebrew Competition has evaluated 118,911 brews. The first competition, held in 1979 in Boulder, Colo., judged 34 beers.

AHA National Homebrewers Conference The 2015 AHA National Homebrewers Conference, held in June in San Diego, Calif., drew 2,700 attendees. Attendees enjoyed 56 educational presentations, highlighted by keynote speaker Tomme Arthur of Port Brewing Company and The Lost Abbey. The National Homebrewers Conference is the only event of its kind, drawing homebrewers from across the nation and around the world to learn, exchange ideas, share homebrew and have fun.

AHA Rallies AHA Rallies are membership generators and “thank you” events for AHA members. These Rallies are hosted by BA member breweries. Current AHA members attend for free, while non-members gain admission for the price of a discounted AHA membership. In 2015, the AHA held 38 Rallies across the country, bringing in 716 memberships, 69% of which were new memberships. All told, 4,145 people connected with the AHA at a Rally in 2015.

16 Brewers Association | 2015 Stewardship Report BrewersAssociation.org AHA Rally at Stone Brewing in 2015.

Government Affairs The AHA played a supporting role in the legalization of homebrewing in Puerto Rico in 2015. AHA staff also worked with homebrewers in California and Colorado to address legal issues facing homebrewers in those states.

Homebrew Club Insurance In 2014, the AHA launched an affordable, nationwide insurance program for homebrew clubs, with both liability and liquor liability coverage. Through the fall 2015 enrollment period, 253 homebrew clubs, representing 13,734 club members, had enrolled in the new insurance program. The AHA does not receive any financial benefit from this program, but helps homebrew clubs obtain affordable insurance.

Homebrew Research Project The AHA conducted a major research project in 2015 to better understand what might motivate people to get involved with homebrewing. The results of the survey will be used by the AHA to help bring more people into the hobby of homebrewing.

AHA Governing Committee The AHA Governing Committee is made up of 15 members elected by the AHA membership. Debbie Cerda, Sandy Cockerham and Chip Walton were elected to the Governing Committee in 2015. Two Governing Committee members are selected from the group to serve as AHA representatives on the Brewers Association Board of Directors. In 2015, Chris Frey and Jake Keeler served as the Governing Committee representatives on the board.

Media Outreach The American Homebrewers Association worked with The Rosen Group, its media relations agency, to increase the AHA’s reach in 2015.

BrewersAssociation.org Brewers Association | 2015 Stewardship Report 17 BREWERS ASSOCIATION

With The Rosen Group’s help, the AHA sent 50 press releases and garnered more than 450 individual media hits with more than 450 million impressions for the year.

AHA Member Deals The AHA continued to expand the number and variety of AHA Member Deals offered through this popular loyalty program benefit. At the end of 2015, 1,273 breweries, taprooms, bars, restaurants, homebrew shops and more offered deals to AHA members, a 13% increase over 2014.

Great American Beer Festival® The 2015 Great American Beer Festival included the 10th annual GABF Pro-Am Competition, in which BA member breweries entered commercial versions of award-winning AHA member homebrew recipes. The competition was another success with 91 entries judged. All of the entered beers were featured in the festival hall at the GABF Pro-Am booth.

Other AHA Programs • Retailer Program: Allows businesses to sell pre-paid AHA membership cards. The program generated 1,373 new memberships in 2015. • Web Banners: In 2015, AHA web banners generated 650 new memberships. • Zymurgy Resale Program: Allows retailers such as homebrew supply shops, bookstores and newsstands to sell Zymurgy magazine. • Big Brew: A simultaneous worldwide brewing event held on the first Saturday of May to celebrate National Homebrew Day. • Mead Day: A national event to celebrate the art of mead making held the first Saturday of August. • Learn To Homebrew Day: A day to inspire and instruct new homebrewers on the first Saturday of November. In 2015, Learn to Homebrew Day broke records with 360 registered sites and more than 5,931 participants. • AHA/BJCP Sanctioned Competition Program: The AHA and Beer Judge Certification Program work together to sanction and promote homebrew competitions. • AHA Club Programs: The AHA maintains a database of registered homebrew clubs. The AHA also awards the annual AHA Homebrew Club of the Year and Gambrinus Club Awards, as well as the Radegast Club of the Year award.

18 Brewers Association | 2015 Stewardship Report BrewersAssociation.org Financials

2015 Financial Statement December 31st, 2015 abbv. (Consolidated) Balance Sheet

2015 2014 ASSETS: 12/31/15 12/31/14 ACTUAL ACTUAL CASH $2,918,483 $2,831,611 REVENUE: RESERVES $13,436,846 $8,153,933 ADVER. & SPONS. REVENUE 4,174,032 3,500,938 ACCOUNTS REC. $1,835,847 $2,093,682 BOOK/MERCH. SALES 2,042,575 2,191,467 INVENTORY $714,168 $620,588 MEMBERSHIP REVENUE 4,268,332 3,686,511 PREPAID EXPENSES/OTHER $785,975 $445,094

EVENT REVENUE 12,591,175 10,830,690 TOTAL CURRENT ASSETS: $19,691,317 $14,144,908 GOV’T GRANT FUNDING 6000,776 552,151 ALL OTHER REVENUE 240,432 388,088 LONG-TERM ASSETS $0 $2,339

TOTAL REVENUE $23,917,323 $21,149,845 FIXED ASSETS $5,246,068 $5,286,025

EXPENSES: TOTAL ASSETS: $24,937,385 $19,433,271 GEN. OFFICE/ADMIN. EXP. -641,870 -585,719

DEPREC. & AMORT. -359,711 -271,040 LIABILITIES: 12/31/15 12/31/15 SALARIES & BENEFITS -5,218,776 -4,650,790 ACCOUNTS PAYABLE $569,781 $568,027 INSURANCE EXPENSE -126,828 -140,182 DEFERRED DEPOSITS $7,862,382 $6,833,309 LEGAL FEES -609,041 -438,717 OTHER $453,606 $330,536 RENT EXPENSE -143,974 -175,665 TOTAL CURRENT LIAB. $8,885,769 $7,731,871 EVENT OPERATIONS -4,768,338 -4,105,885 SALES & MARKETING -1,350,882 -1,053,401 RETAINED EARNINGS $11,701,400 $7,462,544 PRINTING -711,631 -623,024 CURRENT YR. EARNINGS $4,350,216 $4,238,856 POSTAGE & SHIPPING -786,715 -723,466

COST OF GOODS SOLD -454,237 -502,757 TOTAL LIABILITIES: $24,937,385 $19,433,271 TRAVEL -1,083,336 -1,114,028 OUTSIDE SERVICES -2,263,270 -1,584,126 ALL OTHER EXPENSES -1,048,497 -942,190

TOTAL EXPENSES ($19,567,106) ($16,910,989)

NET SURPLUS $4,350,217 $4,238,856

BrewersAssociation.org Brewers Association | 2015 Stewardship Report 19 BREWERS ASSOCIATION Upcoming Events Our Staff

Professional Division 2016 2017 Craft Brewers Conference Craft Brewers Conference & BrewExpo America® & BrewExpo America® May 3-6, 2016, Philadelphia April 10 – 13, 2017, Washington, D.C. Word Beer CupSM Awards Ceremony SAVORSM: An American Craft Paul Gatza Gary Glass May 6, 2016, Philadelphia Beer & Food Experience Director American Dates TBD. Washington, D.C. Homebrewers American Craft Beer Week® Julia Herz Association Director May 16-22, 2016 American Craft Beer Week® Craft Beer Program Director • Janis Gross SM May 15-21, 2017 SAVOR : An American Craft • Andy Sparhawk NHC Director/ Beer & Food Experience Great American Beer Craft Beer Program AHA Project Coordinator Coordinator June 3-4, 2016, Festival® Washington, D.C. Dates TBD. Denver Jill Redding • Duncan Bryant The New Brewer AHA Web Coordinator Celebration of Craft Beer Editor • Matt Bolling Legislative Reception • Amahl Turczyn June 4, 2016 AHA Events and The New Brewer Membership Associate Editor Great American Coordinator Beer Festival® Pete Johnson Steve Parr Programs Manager AHA Assistant October 6-8, 2016, Denver Director • Acacia Coast Brewers Association State Brewers • John Moorhead Holiday Reception Associations AHA Administrative December 2016, Coordinator Assistant Washington, D.C. Chris Swersey Jill Redding Technical Brewing Zymurgy Projects Manager Editor

• Chuck Skypeck • Amahl Turczyn Zymurgy Technical Brewing Projects Coordinator Associate Editor

Bart Watson 2016 2017 Chief Economist National Homebrew National Homebrew • Sarah Wolf Competition Competition Project Coordinator March-April, 2016 March-April, 2017 • Erin Glass BA Membership National Homebrew Day National Homebrew Day Coordinator May 7, 2016 May 6, 2017 Homebrew Con Homebrew Con June 9-11, 2016, Baltimore June 15-17, 2017 Mead Day Mead Day August 6, 2016 August 5, 2017 Learn to Homebrew Day Learn to Homebrew Day November 5, 2016 November 4, 2017

20 Brewers Association | 2015 Stewardship Report BrewersAssociation.org Charlie Papazian Bob Pease President Chief Executive Officer

Tom Clark Stephanie Johnson Martin Finance Director Operations Director

• Katie Brown Finance Accounts Manager

Nancy Johnson Barbara Fusco Shane Wood Cindy Jones Event Director Sales & Marketing Information Web Director Director Technology • Bradley Latham Director • Nate Zander Luke Trautwein Senior Event • Jeb Foster Sr. Web Developer Art Director Manager Marketing Coordinator • Mike Lun Data and Systems • Meghan Storey • Ashley Peck • Chris Williams • Tom McCrory Analyst Web Editor Graphic Designer Event Manager Business Development Manager for Advertising Jason Smith • Kathryn Porter & Sponsorship (East) Magazine Art Director Drapeau Event Manager • Kari Harrington Ryan Farrell • Kristi Switzer • Kerry Fannon Business Development Human Resources Brewers Publications Senior Designer • Chris Swersey Manager for Advertising Manager Publisher Competition & Sponsorship (West) Manager • Tara Forster Dan Goloback • Joe Damgaard Office Manager Member Services Advertising & Manager Sponsorship Associate • Mark Snyder • Graham Rausch • Marc Preo Export Development Member Services Special Projects Program Manager Specialist/Shipping Coordinator Assistant • Katie Marisic Federal Affairs Manager • Jennie Olson Member Services Specialist George Myler Warehouse/Shipping Manager

• Stacey Wetzel Warehouse/Shipping Assistant

BrewersAssociation.org Brewers Association | 2015 Stewardship Report 21 BREWERS ASSOCIATION 2015 Governance Brewers Association Board of Directors

February 2015 – February 2016 • Gary Fish (Chair), Deschutes Brewery (OR) • Chris P. Frey, AHA Representative (MI) • Rob Tod (Vice Chair), Allagash Brewing Company (ME) • Kim Jordan, New Belgium Brewing Company (CO) • Larry Chase (Secretary/Treasurer), Standing Stone Brewing • Dan Kleban, Maine Beer Company (ME) Company (OR) • Dan Kopman, Schlafly Beer/The Saint Louis Brewery (MO) • Steve Hindy (Past Chair), Brooklyn Brewery (NY) • Jake Keeler, AHA Representative (MN) • Steve Bradt, Free State Brewing Company (KS) • John Mallett, Bell’s Brewery, Inc. (MI) • Steve Crandall, Devils Backbone Brewing Company (VA) • Scott Metzger, Freetail Brewing Company (TX) • Tom Dargen, Gordon Biersch Brewery Restaurants/ • Cyrena Nouzille, Ladyface Ale Companie, LLC (CA) CraftWorks Restaurants & Breweries, Inc. (CO) • Tony Simmons, Pagosa Brewing Company & Grill (CO) • Tom Flores, Brewer’s Alley Restaurant and Brewery (MD) • Eric Wallace, Left Hand Brewing Company (CO)

Board of Directors Elections Eligible brewery members of the Brewers Association elected two packaging brewery board members and one pub brewery member in October 2015. Executive Committee Government Affairs Committee • Dan Kleban, Maine Beer • Brandon Mazer, Shipyard • Patrick Rue, The Bruery Company Brewing Company • Gary Fish (Chair), Deschutes • Rob Tod (Co-Chair), Allagash • Eric Wallace, Left Hand Brewery (OR) Brewing Company • Dan Kopman, Saint Louis • Tom McCormick, California Brewing Company • Rob Tod (Vice Chair), Allagash • Gary Fish (Co-Chair), Deschutes Brewery, Inc Craft Brewers Association • Jason Wilson, Back Forty Brewing Company (ME) Brewery • Jim Koch, Boston Beer • Gene Muller, Flying Fish Brewing Company • Larry Chase (Secretary/ • Sergio Barrios, Mark Anthony Company Brewing Company • Sean Lilly Wilson, Fullsteam Standing Stone Brands Brewery Treasurer), Andrew Lemley, New Belgium Scott Newman-Bale, Short’s Brewing Company (OR) • • • John Carlson, Colorado Brewing Company Brewing Company • Staff Liaisons: Bob Pease, Pete Brewers Guild • Steve Hindy (Past Chair), Biscayne Bay John Pinkerton, Moon River Johnson, Paul Gatza, Charlie Brooklyn Brewery (NY) • Jose Mallea, • Papazian • Jeff Hamilton, Sprecher Brewing Company Brewing Company Brewing Company American Homebrewers Garrett Marrero, Maui Brewing Kathi Reinstein, Boston Beer • • Association Governing Committee • Steve Hindy, Brooklyn Brewery Company Company • Roxanne Westendorf (Chair) • Kim Jordan, New Belgium • Nick Matt, F.X. Matt Brewing • John Rubbo, Yonkers Brewing Brewing Company Company Company • Drew Beechum (Vice Chair)

22 Brewers Association | 2015 Stewardship Report BrewersAssociation.org • Susan Ruud (Secretary) Technical Committee • Fred Bonjour • John Mallett (Chair), Bell’s Brewery, Inc. • Martin Brungard • Travis Burge, New Belgium • Debbie Cerda Brewing Company • Denny Conn • Cheri Chastain, Sierra Nevada • Justin Crossley Brewing Company • Chris P. Frey • Tom Flores, Brewer’s Alley • Jake Keeler • Jamie Floyd, Ninkasi Brewing • Ron Price Company Jeff Rankert • Ken Grossman, Sierra Nevada • Brewing Company • Aimee Richard • Larry Horwitz, Four String • Tom Schmidlin Brewing Company • Kim Wood • Charles Kyle, Sierra Nevada • Staff Liaisons: Matt Bolling, Brewing Company Duncan Bryant, Gary Glass, • Geoff Larson, Alaskan Brewing John Moorhead, Janis Gross, Company Steve Parr • Matt Meadows, New Belgium • Members Emeritus: Ray Daniels, Brewing Company Randy Mosher • Matthew Moberly (BIECC co- representative), Bell’s Brewery, Events Committee Inc. • Steve Bradt (Chair), Free State • Travis Morrison (BIECC co- Brewing Company representative), New Belgium Brewing Company • Tomme Arthur, The Lost Abbey • James “Otto” Ottolini, BrewHub • Fred Bueltmann, New Holland Brewing Company • Jason Perkins, Allagash Brewing Company • Bill Butcher, Port City Brewing Company • Matt Stinchfield, Ploughshare Brewing Company • Sam Calagione, Dogfish Head Craft Brewery • Katie Wallace, New Belgium Brewing Company • Bill Covaleski, Victory Brewing Company • Dave Wilson, Alaskan Brewing Company • Jennifer Glanville, Boston Beer Company • Neil Witte, Boulevard Brewing Company • Leslie Henderson, Lazy Magnolia Brewing Company • Chad Yakobson, Crooked Stave Artisan Beer Project • Mike Lawinski, Fate Brewing Company (Boulder) • Staff Liaisons: Dick Cantwell, Paul Gatza, Pete Johnson, Left Hand Brewing • Jeff Mendel, Charlie Papazian, Bob Pease, Company • Tony Simmons, Pagosa Brewing • Randy Mosher, Randy Mosher Market Development Committee Company Design Chuck Skypeck, Chris Swersey, • Scott Metzger, Freetail Brewing • Eric Wallace (Co-Chair), Left Shane Wood Company • Mark Youngquist, Dolores River • Jessica Paar, Boston Beer Hand Brewing Company Brewery Company • Barnaby Struve, Three Floyds • Fred Matt (Co-Chair), F.X. Matt This committee has five Brewing Company • Staff Liaisons: Bob Pease, Paul • Jeremy Ragonese, Boulevard Brewing Company subcommittees: Gatza, Erin Glass, Bart Watson, Brewing Company • Staff Liaisons: Bob Pease, • Kirk Coco, NOLA Brewing • Draught Beer Quality Charlie Papazian Clipper City Company Nancy Johnson, Bradley • Hugh Sisson, • Supply Chain Brewing Company Latham, Kathryn Porter- • Steve Crandall, Devils Backbone • Safety Drapeau, Chris Williams The New Brewer • Staff Liaisons: Paul Gatza, Julia Brewing Company Subcommittee • Sustainability Herz, Charlie Papazian, Bob New Belgium • John Mallett • Gregg DeBoever, Quality Pease, Andy Sparhawk Brewing Company • Brewpubs Committee • Dick Cantwell Stacy Denbow, Deschutes • Cyrena Nouzille (Chair), • Larry Chase • Ladyface Ale Companie Brewery Finance Committee Staff Liaisons: Export Development Program • Jill Redding, Sierra Nevada Standing Kai Adams, Sebago Brewing Subcommittee • Tommy Gannon, • Larry Chase (Chair), • Paul Gatza, Chris Swersey, Brewing Company Stone Brewing Company Company Chuck Skypeck • Eric Wallace (Chair), Left Hand Brewing Company Hops & Grain Cigar City Brewing Tim Brady, Whetstone Station • Josh Hare, • Al Alvarez, • Company Restaurant and Brewery • Heather Douglas, Shipyard • Jessica Jones, Enjoy Beer Governance Committee Brewing Company Odell Brewing Andrew Burns, Emmett’s Chris Lacey, Pelican Pub and • Chris Banks, • Free State • Company Brewing Company • Steve Bradt (Chair), • Ryan Glenn, Ballast Point Brewery Brewing Company Brewing Company Iron Hill Brewery Larry Chase, Standing Stone Anna Nadasdy, Great Divide • Mark Edelson, • Deschutes Brewery • & Restaurant Brewing Company • Gary Fish, • John Green, Founders Brewing Brewing Company New Belgium Company AHA Tom Dargen, CraftWorks • Kim Jordan, Mark Ruedrich, North Coast • Chris P. Frey, • Brewing Company • Representative to BA Board Restaurants & Breweries, Inc. • Ron Jeffries, Jolly Pumpkin Brewing Company Artisan Ales Freetail Brewing Mark Edelson, Iron Hill Brewery Jonathan Schwartz, Harpoon • Scott Metzger, • • Company & Restaurant Public Relations & Marketing • Adam Lambert, New Holland Brewery Committee Brewing Company Short’s Kim Kavulak, Nebraska Brewing George Ward, Boston Beer • Scott Newman-Bale, • • Brewing Company Company • Steve Hindy (Chair), Brooklyn • Fred Mendes, Boston Beer Company Brewery Company New Belgium Christina LaRue, Worthy Evan Weinberg, Cismontane • Christine Perich, • • Brewing Company Brewing Company • Sam Calagione, Dogfish Head • Jim Mills, Caldera Brewing Brewing Company Craft Brewery Company Mother’s Brewing Andrew Leager, Boylan Bridge • Staff Liaisons: Bart Watson, • Jeff Schrag, • Company Brewpub • Kim Jordan, New Belgium • Eric Rosenberg, Bryant Christie Sarah Wolf, Charlie Papazian, Brewing Company Inc. Deschutes Brewery • Dave McLean, Magnolia Bob Pease, Julia Herz, • Peter Skrbek, Gastropub and Brewery • Chris Justema, Cascade Lakes • David Thibodeau, Ska Brewing Paul Gatza • Brock Wagner, Saint Arnold Brewing Company Company Brewing Company • John Pinkerton, Moon River Brewing Company • Jim Koch, Boston Beer • Staff Liaisons: Mark Snyder, • Staff Liaisons: Tom Clark, Company Bob Pease Bob Pease

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