Beer flight: Large craft breweries will establish out-of-state locations to compete in a crowded market

The California Breweries industry has experienced strong revenue growth over the five years to 2017. A boom in industry revenue has primarily been driven by the growing popularity of California-produced craft beer. Consumers have gravitated toward craft beer offerings due to their bold tastes and local flair. Gains in craft beer sales have largely come at the expense of established beer industry behemoths. However, craft beer is sold at a higher average price point than beer from these industry behemoths, causing total revenue to grow. However, growth rates are expected to slow over the five years to 2022 as many of California's largest craft brewers opt to invest in establishing production facilities in the Northeast and Southeast in order to expand their geographic reaches...read more.

Industry Statistics & Market Size
Revenue
$6bn
Annual Growth 12-17
4.7%
Forecast Growth 17-22
Profit
Employment
7,422
Businesses
772

Industry Threats & Opportunities

  • As small brewers have increased market share, average profit margins in the industry fell
  • Industry behemoths have recently tried to buy their way into the California craft-style beer market
  • By building out of state, breweries can distribute beer at a lower cost to other regions of the country
  • Industry Report - Industry Products Chapter

    Premium and super-premium beerSuper-premium and premium beer comprise the majority of beer produced in California accounting for 55.4% of total revenue. Budweiser, Coors and Miller High Life are popular examples of premium beers produced in California. Also included in this category are the light variants of these offerings which include Bud Light, Coors Lite and Miller Light. Premium beers are typically more mild tasting than craft beers and make use of rice, corn and additional adjuncts during the brewing process. Super-premium beer offerings such as Michelob ULTRA are also produced in California. Super-premium offerings are usually pretty similar to premium beer offerings, but are priced slightly higher. Sal...purchase to read more.

    Additional Insights for the Breweries in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Breweries in California Industry are

  • Establishment of brand names
  • Control of distribution arrangements
  • Marketing of differentiated products
  • IBISWorld analysts also discuss how external factors such as Per Capita Disposable Income in California and Demand from beer wholesaling in the Breweries in California industry impact industry performance..

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    What's in this report

    What is the Breweries in California Industry?

    The Breweries industry in California primarily produces alcoholic beverages made from malted barley and hops such as beer, malt liquor and nonalcoholic beer. This industry excludes wine, brandy, cider and distilled beverages such as vodka and rum. Bottling purchased malt beverages and manufacturing purchased malt are also excluded from this industry.

    Industry Products
  • Premium & super-premium beer
  • Craft beer
  • Sub-premium beer
  • Malt liquor & progressive adult beverages
  • Industry Activities
  • Canned beer production
  • Bottled beer production
  • Draft beer production
  • Nonalcoholic beer production
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per Capita Disposable Income in California
  • Demand from beer wholesaling
  • Per Capita Alcohol Consumption in California
  • Excise tax on beer

  • Current Performance
  • Craft brewing
  • Industry behemoths
  • Chart: Revenue Growth

  • Industry Outlook
  • Craft brewing
  • Industry behemoths
  • Table: Breweries in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Breweries in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Beer Wholesaling
  • Consumers

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing
  • Corn, Wheat & Soybean Wholesaling
  • Glass Product Manufacturing
  • Printing
  • Sugar Processing
  • Wheat, Barley & Sorghum Farming
  • Wood Pallets & Skids Production

  • Products & Services
  • Premium & super-premium beer
  • Craft beer
  • Sub-premium beer
  • Malt liquor & progressive adult beverages
  • Chart: Breweries in California Industry Products and Services Segmentation

  • Major Markets
  • Consumers aged 21 to 34
  • Consumers aged 35 to 55
  • Consumers aged 65 and older
  • Chart: Major Market Segmentation for the Breweries in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation, rent and utilities
  • Other Costs
  • Chart: Cost Structure Benchmarking – Sector vs Breweries in California

  • Basis of Competition
  • Internal Competition
  • External Competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Breweries in California Industry

  • Anheuser-Busch InBev SA, Molson Coors Brewing Company, Constellation Brands Inc., Duvel Moortgat NV, Lagunitas Brewing Company, Sierra Nevada Brewing Company, Stone Brewing Company,
  • Table: Anheuser-Busch InBev SA - financial performance
  • Table: Molson Coors Brewing Company - financial performance
  • Table: Constellation Brands Inc. - financial performance
  • Table: Duvel Moortgat NV - financial performance
  • Table: Lagunitas Brewing Company - financial performance
  • Table: Sierra Nevada Brewing Company - financial performance
  • Table: Stone Brewing Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Breweries in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Breweries in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita pure alcohol consumption in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Barrel
  • A container for beer that is equivalent to 2 kegs, 31 gallons, 1.17 hectoliters or 330 12-ounce servings of beer.
  • Brewpub
  • A restaurant-brewery that sells more than 25.0% of its beer on-site.
  • Craft Brewer
  • A brewery that has annual production of less than six million barrels and has fewer than 25.0% of its ownership in the hands of a non-craft brewer.
  • Malt Beverage
  • The general name for products made with malted barley or hops. It must derive the majority of its alcohol content from the fermentation of brewing ingredients.
  • Malt Liquor
  • Defined as a malt beverage with an alcohol content of higher than 6.0% in most states; this term has legal and tax implications for brewers and distributors.
  • What Our Customers Say

    Why buy this report?

    The Breweries in California Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Breweries in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Breweries in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Breweries in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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