Look Who’s Brewing

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Craft beer is booming in Sacramento, California and the nation! According to the Brewer’s Association, craft beer has grown to 4.2 times its 2004 size in the ensuing twelve years. Board of Equalization data acquired by Sacramentality shows that California was ahead of the curve so has grown a little slower to 3.5 times its size, although that drops to 2.7 times if breweries recently purchased by macro conglomerates are omitted.

Sacramento (represented by a Kings flag, both because the current flag needs replacing and because the data represents the metropolitan area, not just the city) was hit hard by the recession, dropping to 2/3 its 2004 size by 2009 and growing slowly through 2013, but has exploded since, more than tripling in the last four years. We will delve deeper into the local brewing numbers in a subsequent piece, but the decline was caused almost entirely by Sacramento Brewing Company’s descent into oblivion.

 

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Craft brewers are not the only ones brewing in California. Driving over the causeway, you’ll see a prominent billboard with the good folks of Anheuser-Busch pointing out that Bud Light, despite its strong association with St. Louis, MO is brewed in California.

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Perusing Board of Equalization data, we see that this is true. Very, very true.

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Most (56%!) of the beer accounted for in the Board of Equalization Beer Manufacturer Tax Reports (provided graciously by BOE staff, thank you for that) was brewed by the good folks at everyone’s favorite Belgo-Brazilian mega-conglomerate, Anheuser-Busch InBev. Add in South African-Canadian-American mega-brewer, MillerCoors and the macro brewers collectively top 80 percent of California’s locally produced beer. Budweiser tops 400 million gallons, while MillerCoors hovers around 190 million gallons. While the macro brewers continue to dominate the shelves, their numbers have been slipping, leading the big guys to take a ‘if you can’t beat’em, join’em’ approach.

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Coming in third is California’s largest craft brewery (and, coincidentally, the nation’s third largest – behind Yuengling and Boston Brewing), Sierra Nevada. At 34 million gallons, Chico’s finest accounts for nearly five percent of California’s beer, nearly as much as the next three, Lagunitas (14.6 M), Ballast Point (12.2 M) and Stone (11.8 M), combined. Firestone Walker (11.5 M) rounds out the top group. There’s a large jump to the next group of breweries, with fourteen totaling between one and four million gallons (Anchor, Gallo, Bear Republic, Green Flash, Gordon Biersch, Lost Coast, North Coast, Golden Road, 21st Amendment, Anderson Valley, Karl Strauss, Coronado, Pizza Port and Hangar 24).

These seventeen breweries collectively account for 96.5 percent of California’s brewing. The remaining 600 plus breweries total less than Sierra Nevada brews alone.

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With so much of California’s craft brewing consolidated in a handful of its largest breweries, it is not surprising that its brewing is largely consolidated in five regions:

  • Northern California: over 80 percent of which is produced by Sierra Nevada
  • San Diego: two-thirds by Stone and Ballast Point
  • North Bay: nearly 80 percent by Lagunitas
  • Central Coast: nearly 90 percent by Firestone Walker
  • Bay Area: two-thirds by 21st Amendment, Anchor and Gordon Biersch

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Today, Sacramento remains among the smaller brewing regions, but that may soon change. Our region has been the fastest growing since 2011, increasing production by more than five times over. Check back in a few weeks and we will delve into and celebrate the enormous growth Sacramento’s brewing scene has experienced the last several years. With great breweries like Moonraker, New GloryNew Helvetia & Mraz continuing to push the envelope, an expansion announced by Device, recent newcomers including Flatland and Claimstake beginning to tickle our taste buds, highly anticipated openings in the New Year in Urban Roots and Moksa and larger, established breweries like Track 7 and Knee Deep, I think we can all agree that Sacramento’s brewing scene is Flippin’ Good!

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