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2018 Stewardship Report Inclusive, Recognizes the Innovation and Evolution of Dear Valued Brewers the Brewing Community, and Adds More Breweries to the Craft Data Set

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2018 Stewardship Report inclusive, recognizes the innovation and evolution of Dear Valued Brewers the brewing community, and adds more breweries to the craft data set. Association Member: FORTIFYING OUR VOICE Also at its final meeting of 2018, the BA board of directors approved the creation of a new member- 2018 was another milestone year for the craft brewing ship class to recognize the growth and importance of community. With more than 7,000 small and inde- taprooms with representation and a voice at the pendent breweries in operation and a brewery within table. In addition, the board approved the formation 10 miles of 85 percent of all Americans, the Brewers of a political action committee to strengthen our posi- Association accomplished much on your behalf tion in Washington., D.C. Look for more information to throughout the year to strengthen the brewing com- come in 2019. munity and provide tools to succeed in a competitive environment. In 2018, the BA focused on: These resources address safety, sustainability, supply HONORING CHARLIE chain, quality, draught beer quality, and engineering 2018 was also bittersweet as we bid topics; relay industry guidelines and metrics; and help farewell to Charlie Papazian, our bridge the gap in technical acumen. guiding light for the past 40 years. His influence on the homebrewing and craft brewing community is immeasurable. Who could have ENSURING A HEALTHY SUPPLY CHAIN predicted that a simple wooden To further the development of a robust and sustainable spoon, ingenuity, and passion raw materials supply chain, the Brewers Association’s would spawn a community of more Research and Service Grants program awarded than 1.1 million homebrewers and 7,000 $430,000 to 17 research projects in 2018. Since the small and independent U.S. craft brew- FUELING INDEPENDENCE inception of the grant program in 2015, the BA has eries? We are all here today because of Our second national awareness campaign in as many provided more than $1.7 million in funding for 77 Charlie and we are beyond grateful for his years, That’s Independence You’re Tasting promoted projects—addressing public barley and hop variety many contributions. small and independent breweries to a broader audi- development, hop disease, and hop aroma—as well ence. The campaign, the largest in the association’s as supported affiliated national and state-level grower Amid all this activity and development, the Brewers history, was centered around two 30-second adver- organizations. The BA also continued to work with the Association’s purpose remains unwavering: “To tisements broadcast on a variety of media, including United States Department of Agriculture to revitalize FOSTERING COMMUNITY promote and protect American craft brewers, their Diversity and inclusion are opportunities for businesses cable, satellite, and broadcast television; social media; public hop breeding. beers, and the community of brewing enthusiasts.” to lead and succeed. In 2018, the BA welcomed Dr. J. and Pandora radio. With the advertisements realizing Our members-first approach and firm dedication to Nikol Jackson-Beckham as its first diversity ambas- more than 170 million impressions, the BA is proud to building tangible membership value and program- PROMOTING BREWING EXCELLENCE sador. Similar to other ambassador roles at the BA, be able to do for all of our members what would be To provide guidance for operating a successful, safe, ming has brought us to this point, and there is every Dr. J traveled around the country to state guilds and extremely difficult for them to do individually. To date, and sustainable business and to equip our members for reason to believe that it will sustain us into 2019 and other craft brewing events to speak on best practices more than 4,000 brewing companies, representing excellence in brewing, the BA continued to deepen its well beyond. for diversifying both customer bases and staff, and more than 85 percent of the craft beer brewed in the educational resources through hands-on instructional Thank you all for being valued members and for your to listen to current challenges in this area. Five new U.S., have adopted the independent craft brewer seal. workshops, best practices publications, online webi- steadfast support of the Brewers Association. best practice resources are now available for member Together we are united in independence. nars, and a robust in-the-field ambassador program. download on BrewersAssociation.org. Cheers, Craft Brewer Defined. An American craft brewer is a small and independent brewer. RECOGNIZING INNOVATION The Brewers Association board of directors completed Small. Annual production of 6 million barrels of beer or less (approximately 3 percent of U.S. annual the next step in the evolution of the craft brewer defi- Bob Pease sales). Beer production is attributed to a brewer according to rules of alternating proprietorships. nition at its fourth-quarter meeting in Scottsdale, Ariz. President & CEO The process to review and update the definition started Independent. Less than 25 percent of the craft brewery is owned or controlled (or equivalent in summer 2018 with a survey to determine what economic interest) by a beverage alcohol industry member that is not itself a craft brewer. products members are brewing or may brew in the Brewer. Has a TTB Brewer’s Notice and makes beer. future, followed by a request for input on a proposed change. This fourth evolution of the definition is more 2 | Brewers Association 2018 stewardship report BrewersAssociation.org | 3 2017 and representing more than 85 percent of craft beer volume. Notably, more than 60 percent of the top 50 craft brewing companies have added the seal to their packaging. “I am proud to announce that Dogfish Head believes so strongly in the BA’s objective to help small indie Fueling Independence craft breweries differentiate ourselves that we are making the BA indie seal as big as we possibly can on our biggest THAT’S INDEPENDENCE selling beer’s packaging: YOU’RE TASTING 60 Minute IPA.” Our second national awareness campaign in as many years, That’s Independence You’re Tasting launched in – Sam Calagione, August with the goal of promoting small and indepen- ,,+ Dogfish Head Craft Brewery dent breweries to a broader audience. The campaign, the largest in the association’s history, centered around Breweries continue to find two 30-second advertisements broadcast on a variety IMPRESSIONS ways to incorporate the seal of media, including CBS and CBS Sports, Comedy into their branding and promo- Central, The Travel Channel, NBC Universal, Hulu, More than 170 million impressions on tional materials, driving beer lover awareness, guiding YouTube, Adobe, Pandora radio, Facebook, Instagram, cable, satellite, and broadcast TV, purchase decisions, and underlining the importance and Twitter. social media, and Pandora radio of brewery independence. The campaign videos proudly displayed the indepen- dent craft brewer seal—a mark that brings transparency to the marketplace and symbolizes a world that was turned upside down by the ingenuity and iconoclasm of the craft brewing movement. Our hope is that after ,+ being exposed to these stories, beer lovers are moved ADOPTED THE SEAL to support independent breweries and seek the seal Untappd: 2,000,000+ badges unlocked when making their beer purchases. 4,000 brewing companies, representing more than 85 percent of the craft beer Since Sept. 20, 2018, the brewed in the U.S., have adopted the Independent U.S. Craft Breweries INDEPENDENT CRAFT BREWER independent craft brewer seal badge has been unlocked more That’s Independence You’re Tasting took a proud SEAL GAINS MOMENTUM than two million times. and positive tone, focusing on two key tenets of The independent craft brewer seal, launched in June craft brewing culture: independence and choice. 2017, made significant inroads into the beer market- The ads showcased the grit, determination, inno- place—and popular consciousness—in 2018. More than Retail Support vation, and passion of America’s more than 7,000 4,000 small and independent brewing companies On April 25, 2018, the association launched a program independent brewers. have adopted the mark—a 33 percent increase from to equip on- and off-premise retailers with free assets to activate the independent craft brewer seal and elevate how they promote independent craft beer. Since the launch, retailers, breweries, and beer indus- try stakeholders have declared their support for the seal and requested point-of-sale materials. In addition, several influential publishers have incorporated the independent craft brewer seal into their businesses, including BeerAdvocate, BreweryDB, Craft Beer & Brewing, TapHunter, Tavour, BrewGene, and Untappd. 4 | Brewers Association 2018 stewardship report BrewersAssociation.org | 5 Industry Snapshot U.S. Beer Volume Share Number of Operating U.S. Breweries ECONOMIC 8000 IMPACT % RECORD BREWERY COUNT 7000 % 6000 ,+ Jobs % 5000 Craft beer full-time equivalent jobs— 4000 a 9% increase from 2017. ,+ 3000 2000 BREWERIES ,,, Import Craft Other Domestic 1000 Craft brewers’ contribution to the U.S. economy, More than 7,389 breweries operated in the a 12% increase from 2017. United States in 2018, and 85% of 21+ adults 0 20162015201420132012201120102009200820072006 2017 2018 now live within 10 miles of a brewery. (EST) Some of the growth in market share has been driven economic data of craft brewing for all 50 states and by the continued rise in the number of breweries. the District of Columbia, showed that craft brewers Although final 2018 numbers are still being compiled, contributed $76.2 billion to the U.S. economy in 2018, STEADY GROWTH it is certain that more than 7,389 American breweries a 12 percent increase from 2017. Craft brewers were Although the craft market has matured in recent years, operated in 2018, a record number for the United responsible for more than 500,000 full-time equivalent craft brewers continued to grow and gain market share States.
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