Craft Brewery Financing
According to the Brewers Association, over 5,300 breweries operating during 2016, small and independent craft brewers represent 12.3 percent market share by volume of the overall beer industry. In 2016, craft brewers produced 24.6 million barrels, and saw a 6 percent rise in volume on a comparable base and a 10 percent increase in retail dollar value. Retail dollar value was estimated at $23.5 billion, representing 21.9 percent market share. By adding 1.4 million barrels, craft brewer growth outpaced the 1.2 million barrels lost from the craft segment, based on purchases by large brewing companies. Microbreweries and brewpubs delivered 90 percent of the craft brewer growth.
“Small and independent brewers are operating in a new brewing reality still filled with opportunity, but within a much more competitive landscape,” said Bart Watson, chief economist, Brewers Association. “As the overall beer market remains static and the large global brewers lose volume, their strategy has been to focus on acquiring craft brewers. This has been a catalyst for slower growth for small and independent brewers and endangered consumer access to certain brands. Small and independent brewers were able to fill in the barrels lost to acquisitions and show steady growth but at a rate more reflective of today’s industry dynamics. The average brewer is getting smaller and growth is more diffuse within the craft category, with producers at the tail helping to drive growth for the overall segment.”
Additionally, in 2016 the number of operating breweries in the U.S. grew 16.6 percent, totaling 5,301 breweries, broken down as follows: 3,132 microbreweries, 1,916 brewpubs, 186 regional craft breweries and 67 large or otherwise non-craft brewers. Small and independent breweries account for 99 percent of the breweries in operation. Throughout the year, there were 826 new brewery openings and only 97 closings. Combined with already existing and established breweries and brewpubs, craft brewers provided nearly 129,000 jobs, an increase of almost 7,000 from the previous year.
Expanding your brewery, adding on a taproom, purchasing brewery equipment, and evening out cash flow can all be managed with the right type of brewery financing. Can you bank on bank financing? Not nowadays. Bank loans do not provide the short-term influx of cash flow necessary to sustain and grow craft breweries; not to mention, they're near impossible to obtain. LVRG is the Nation's go-to source for brewery financing and provides opportunity capital to brewery owners nationwide. Call us today at (855) 998-LVRG or click below!