It has been brought to my attention that someone is selling, or trying to sell, our beers on eBay. I heard about it with Ananke (which we still have bottles of sitting on our shelves) and I found a listing for a 2011 La Muerta with a starting bid of $49.99.
Please do not buy these. First of all, La Muerta isn’t worth $49.99. It’s worth exactly $11+tax, the price we sell it for. I highly advise that no one ever pay a cent more (and there are no competitive issues with me saying that, since we are the only ones legally able to sell it).
Second of all, this is flat out f’ed up and I’m fully in support of TABC going after this person for the unlicensed sale of alcohol. If I find out who you are, I will make sure you are banned from ever buying our bottles again.
We take great pride in what we do and hate to see our hard work tarnished by someone trying to make a quick buck. I have no problem with the trading community (so long as traders don’t begin to crowd out our local customers) and in fact am very flattered to see our beers end up all over the country. But when someone buys our beers to try to flip them for financial gain, you’ve completely gone against what we are about.
Today the results of the most recent update of the Texas Craft Brewing Industry Economic Impact Study has gone live. Below is a copy of the story, and a link to additional materials.
I’d like to thank all my colleagues in the Texas Craft Brewers Guild for helping me with this study, and a special thank you to Joanne Marino of Skematik and Steve Brand of Wasabi Creative for all their help in helping with the release and publication of the study.
Texas cannot afford to keep it’s small businesses operating at a disadvantage to out-of-state concerns. 52,000 jobs and $5 billion of additional annual economic activity are at stake. I encourage you to contact your representatives, tell them the story of Texas Craft Beer, and point them towards this study.
TX Craft Beer Impact $608 Million, Could Be Billions
The Texas craft beer industry is having measurable positive economic impact on local and regional economies throughout the state to the tune of $608 million, according to the Economic Impact of the Texas Craft Brewing Industry study released today by the Texas Craft Brewers Guild. Texas craft brewers are also creating jobs, accounting for 51.2 percent of all the state’s brewery jobs, a remarkable figure given only 0.7% of the beer consumed in the state comes from Texas craft brewers.
The study, authored by University of Texas-San Antonio Economics Professor Scott Metzger, founder and CEO of San Antonio-based Freetail Brewing Co., also models how the economic impact of the Texas craft beer industry could reach $5.6 billion annually in just eight years.
“$5.6 billion sounds astounding, but given what’s happening across the country with craft beer, it’s not. It’s actually conservative,” Metzger says, calling the 2011 figure “the tip of the iceberg.”
“Given consumer demand and planned increases in capacity, a tremendous opportunity exists for ongoing and future growth — provided legislation may be passed allowing Texas’ craft brewers the same access to market enjoyed by brewers in other states and by the Texas wine industry,” Metzger says.
“In other states, brewers can sell their packaged goods directly to consumers through tasting rooms. In other states, brewpubs can sell their beer off premises, at festivals, for instance, and as packaged goods in retail stores, not just at their brewpub location,” explains Metzger.
“These sales opportunities other brewers benefit and grow from are lost for Texas craft brewers — and they add up.”
I get occasional questions via email and comments here in regards to if Craft Brewers will once again be active in the 2013 Texas Legislative Session. The answer is absolutely, and I believe we are more focused, driven and organized than ever.
If you hadn’t heard, Senate Business and Commerce Committee chairman, Senator John Carona, (Rep-D16-Dallas County) asked fellow committee member, Senator Leticia Van de Putte (Dem-D26-Bexar County), to form a working group of industry stakeholders to evaluate the Texas Alcoholic Beverage Code. Production, wholesale and retail tier members from distilled spirits, malt beverage and wine have been actively engaged with one another since.
On the malt beverage side, I am encouraged by an unprecedented level of openness and communication between the different tiers. For the first time since I’ve been involved, stakeholders have willingly come together and been open about their goals and concerns and, more importantly, we all acknowledge that it’s okay for us to disagree on certain points. In fact, recognize where we disagree is the first step in coming to a middle ground we can all agree on.
Some of the best news is the sense of all around agreement is that craft beer is here to stay and that it is an important part of wholesaler’s growth plans. Not only is craft beer driving all of the growth in the craft beer segment, but the success of craft beer is what drives the big breweries to continually develop new products – and those new products are the only growing portion of big beer’s portfolio. Craft beer is a win, win for everyone.
I know there hasn’t been a ton of activity on this blog, but look for things to be picking up as we advance closer to the session and then my goal is to have daily posts once the session starts.
We are Texas, and our Star shines bright.
As of December 31, 2011, Texas was home to 71 licensed small craft breweries (which, for the purposes of my analysis, include breweries less than 75,000 barrels of annual production, up from 47 just a year earlier. That number includes 34 brewpubs (up from 28 at year end 2010) and 37 production breweries (almost double from the 19 licensed production breweries at the end of 2010). in 2011, Texas small craft brewers produced 130 thousand barrels of beer, compared to 93 thousand just the previous year.
The growth of our industry has been amazing and has not gone unnoticed, yet I submit to you the following proclamation: we are underachieving.
31 Texas counties are home to a small craft brewery, but that’s out of 254. Not good enough.
That 130 thousand barrels produced by Texas small craft brewers? That represents a paltry 1.2% of the craft beer industry and a pathetic 0.06% market share in the overall US beer market. Not good enough.
Those 71 small breweries? We still rank 46th in breweries per capita in the US. Not. Good. Enough.
Since I only speak on behalf of myself and my brewery, I won’t call the following list a set of goals. Instead, let’s call them a challenge.
By 2015, I challenge Texas to the following:
- Be home to 160 actively licensed small craft breweries.
- Produce 250,000 barrels of beer from small craft breweries.
- Have a small craft brewery in 40 Texas counties (this one is admittedly harder, since breweries tend to open in more populated areas, for obvious reasons).
These three challenges are achievable, but it will take the effort of numerous parties. To be successful, I’m challenging the following groups to do their part.
- Texas Small Craft Brewers: your challenge is obvious.
- Texas beer distributors: you are our ally in the growth of the industry, and our growth cannot happen without you. Commit to carrying and featuring Texas brands.
- Texas beer retailers: you are the front line. Abandon the old school way of retailing beers and the intimidating walls of industrial light lager. Give brewers a fair and equitable display with no unfair preference to brands who kick you illegal incentives. Provide consumers easy, clear access to the brands they want.
- Texas Legislators: you are challenged with the task of establishing fair, competitive industry reforms that allow Texas small craft brewers to grow their brands. That means allowing production breweries to establish tasting rooms and sell directly to consumers on premise and allowing brewpubs to sell into the wholesale tier. There is almost $1 billion in economic impact at stake for helping Texas meet the 2015 Challenge (based on my annual Economic Impact Study – latest version to be published in March/April).
- Texas beer consumers: you have the best job in achieving the challenge. Continue drinking and supporting Texas small craft brewers.
Together, we can do this. Share the message of the 2015 Challenge with friends, colleagues, industry members, and anyone you know who cares about Texas Craft Beer.
Drink Beer, Save Texas.
Wanna hear me talk about stuff? I didn’t think so. In any event, if you feel like hearing my opinion on Freetail, beer trading, Texas laws, the craft beer industry and dinosaurs, you can listen here:
2011 is in the books, and it was an eventful one for the beer industry as the craft segment continues to explode and the traditional powerhouses continue to cling to market share. My list of the year’s top stories looks something like this, in no particular order:
- A tidal wave of Breweries-in-Planning. According to the Brewers Association, the number of breweries in planning stages was 855 as of 11/30/11 – and that’s just the ones they know about! More on this in my 2012 Predictions.
- Rubber Boots More Common at the Capitol. A number of high profile legislative efforts went down in 2011, including a successful effort in Minnesota led by Surly Brewing Co. to allow production breweries to sell beer directly to consumers at the premise of their breweries and unsuccessful efforts in Texas to allow similar changes for production breweries and to allow brewpubs to sell to distributors. Aside from the issues the individual bills try to address, the big story here is a growing trend of states having to adapt to the changing marketplace and the emergence of craft beer. Laws drafted almost 80 years ago are finding themselves inadequate to handle the modern beer industry, and the states that have already realized this have been able to foster economic growth leaving slow adopters in the dust.
- Craft Continues to Boom. In a sign of Craft Beer’s continued emergence, mixed with a sign that the main stream doesn’t quite fully get it yet, The Wall Street Journal Reported Craft Beer sales were up 16.4% in 2011 compared to a 2% drop in sales for beer sales as a whole. As for the sign the main stream doesn’t fully get it yet: in the same article, the WSJ captioned a photo as being from “A Sierra Nevada Pale Ale brewery”. (Facepalm)
- The Wall Street Journal Might Not Get It, but MillerCoors Does. For years, “faux” craft brands like Blue Moon and ShockTop have been the ire of hardcore beer aficionados who have actively revolted against Big Beer and its influence over the industry. But MillerCoors deserves credit for their approach to the segment, and the seeming autonomy given to Tenth and Blake, it’s craft and specialty unit. There are increasing signs, and acceptance from some craft beer heavyweights, that Tenth and Blake is poised to be a major player (more in my 2012 predictions).
- And Maybe Anheuser-Busch InBev gets it too? The InBev spending spree never stops, with the global giant purchasing Chicago’s Goose Island for a reported $39 million. Goose Island insiders say the ownership change won’t impact their approach to beer, but one immediate impact is the strategy by InBev to begin trademarking Area Codes around the United States in what would appear an effort to mimic the success of Goose Island’s 312 Urban Wheat.
- Authentic Beverages Puts a Crack in Texas’ Dam. As reported here, A Federal Judge found certain aspects of the Texas Alcoholic Beverage Code to be violations of the 1st Amendment, and the state does not plan to appeal. (I tried to avoid linking to myself in this round-up, but with all due respect to journalists, I think my write up is most encompassing of the realities in this case – for other sources, I recommend a quick Google search of Authentic Beverages, Jester King, and TABC)
Without question, there are a lot of other huge stories that I’m not addressing as was a busy year. There was some major projects for me personally as well: I was involved in an (unsuccessful) legislative effort, (unsuccessfully) attempted to open another brewery 200 miles from where I live, was a witness on a high profile industry lawsuit, began installing a bottling line at our existing brewery. Fit that in between teaching at the University, serving on two Brewers Association committees, giving a TEDx talk, and the whole “running a business” thing. Despite two major unsuccessful ventures, I consider 2011 to have been a smashing success and I’m looking forward to 2012.
Speaking of which, here are my Beer Industry Predictions for 2012:
- Craft Beer Will Simultaneously Become More National and More Local. The continued growth of Craft Beer brings with it some growing pains. We will see an increasing number of breweries “pulling back” from markets on the outer reaches of their distribution territory in order to keep up with demand closer to home. Some of this newly available shelf space will be filled by an increased proliferation of the “big” craft brands like Sierra Nevada, New Belgium, etc. and imports. Simultaneously, some of the shelf space will be filled by local brands, either new breweries or existing ones finding increased access to market.
- Setbacks for Start-ups. Despite the optimism of some of my peers in the industry, I share the cautious skepticism of others who wonder if the market can support what amounts to a 50% increase in the number of breweries in America (if all the “in planning” came fruition). My personal feeling based on anecdotal evidence as someone who has given multiple Start-up talks at national conventions & gets a lot of inquires for advice is that the growth of the industry has once again drawn the attention of a lot of people who really shouldn’t get into the industry. I’m not suggesting there are or should be “rules” on who can start a brewery; but I do have a (completely unsupported by anything like empirical evidence) feeling that start-ups backed by people who see a breweries as nothing more than investments for the potential for high-return fail at a significantly higher rate than those of us who got into this business for the love of the industry. That isn’t to say that every start-up doesn’t have someone who loves the industry (though I know that isn’t the case), but there is a certain corrosive element that having the wrong people involved in a start-up can bring and it is becoming increasingly common. I think we’ll see some quick, and even high-profile with shiny new equipment, failures in the coming years.
- Natural Selection. I also predict an increased number of closures of established breweries in 2012 as competition becomes more intense. There are a lot of newbies (5 years old or less) making incredible beer pushing established breweries to up their game, or fade away into history. The result will be excellence on a more consistent basis from craft breweries. You’re favorite brands will either continue to get better, or they’ll just go away.
- A Glut of Equipment. The good news about my last prediction, is that if you are a start-up there should be a glut of equipment coming available as breweries fail. Some free start-up advice from yours truly: be a contrarian! If there is no used equipment available, it’s a bad time to start a brewery, because it means everyone else is starting breweries.
- Despite These Factors, Craft Continues to Blow Up. Based on the Wall Street Journal growth numbers quoted above, Craft Beer should enter 2012 with a market share around 5.1% by volume and 8.0% by dollars. I predict another year of high-teens growth, maybe even 20% as craft beer becomes increasingly mainstream, and craft will enter 2013 with dollar share of 10%.
- Distributors Start to Play Nice. In many states, there has long been an uneasy relationship between brewers and distributors, especially in the legislative arena where distributors feel empowering breweries puts their place in the 3-tier system at risk. I see 2012 as the year distributors in lagging states “see the light” and drop their opposition to legislative changes that would help small brands. Operationally, I predict increased pressure from InBev on its distributors to focus on their brands and wouldn’t discount the possibility of threats on those distributors if they don’t focus on InBev’s portfolio. Even so, I see craft beer & brand promiscuity accounting for an increasing percentage of wholesalers’ portfolios.
- Texas Will Change in 2013, and We’ll Know About it in 2012. Before the end of the year, craft brewers, distributors, retailers, consumers & lawmakers will have agreed upon legislation that allows production brewers to sell directly to consumers on the brewery premise and for brewpubs to sell their beer to distributors for resale. Texas will be free from the shackles of the past… which leads me to:
- BONUS 2013 PREDICTION: Texas experiences a craft beer Renaissance. Some of you may already think we are there, with all the new brewers popping up around the state… but by the end of 2013, you’ll look back and realize that we hadn’t seen anything yet.