Raise a pint – or two – to the economic growth and community-building recent legal changes have made possible
There has never been a better time to be a brewer – or craft beer drinker – in South Carolina than right now. Perhaps you’ve known this as you visit a local brewery, or look at the beer shelf at the supermarket, or even read the pages of this newspaper. But why is that? Will it continue? And if so, why?
Let’s start at where we are at and where we’ve come from. Craft beer accounts for about 12 percent of the national beer market, and is valued about $22.3 billion out of the entire $105.9 billion beer market. The most recent national numbers make clear that small and independent craft brewers contribute about $55.7 billion to the U.S. economy and provide about 425,000 jobs, with 115,000 of those coming directly from breweries in brewpubs.
Sales growth is up 12.8 percent over the past year, whereas growth in the overall sales of beer (which would include the bigger beer companies) is only about 0.2 percent. The number of breweries nationally is at an all-time high at the moment, even higher than before Prohibition – now over 4,269, with probably even more since breweries are opening at a rate of 2 per day across the country.
In South Carolina, we are seeing the exact same growth. In the last three years, the craft beer industry in the Palmetto State has almost doubled, rising from $255 million in 2012 to $455 million in 2015. Breweries and brewpubs employ nearly 3,500 people, and with 36 craft breweries and 13 brewpubs open for business, more are on the way, particularly in the Greenville area where the market is about to double with at least six to eight breweries in planning.
In total, the Upstate accounts for over 50 percent of the state’s beer production, which has also doubled in the last three years. And believe it or not, there is still plenty of room for more.
But the big question is: Why do we have this growth? The answer incorporates a variety of reasons.
Laws are changing
First, the laws – they are changing and will continue to change. The very nature of the craft beer industry is to be innovative, and the laws on the books can go back as far as decades when the thought of what goes on today was not even a consideration. So, with some recent changes, local breweries are able to finally turn a profit.
If you’ve followed along in the last several years, you read about the Pint Law and the Stone Law, which modernized taproom sales laws in South Carolina. The Pint Law allowed on-site sales at breweries up to 48 ounces per patron per day. The Stone Law went even further to do away with the on-site sales cap if food was served. It also allows breweries to sell wine and the beers of other producers.
Together, these changes have allowed more capital investment in breweries and have resulted in an increase of over 200 percent in the number of breweries opening. Further modernization will be needed to keep up, but for now, local brewers are seeing great benefit from recent reforms.
A collaborative industry
Second, the craft beer industry is unlike any other. Sure, the beers are great, but many are drawn to craft beer because of its collaborative attitude among brewers dedicated to advancing the art versus advancing individual interests.
Many disputes over trademarks or other legal issues are most often disposed of over a beer, with both sides coming to simple terms and then agreeing to brew a beer together. It is a clear “rising tides lifts all boats” philosophy. And while this might affect the bank accounts of some, in the end most believe that standing together is a better business plan than hanging alone. This seems to be working as communities are getting much economic development from strings of breweries opening on their blocks.
The craft beer lifestyle
Third, support for locally produced brands and products is now more a lifestyle than it is a trend. At a basic level, buying local keeps money in the local community and creates jobs. Craft drinkers recognize this, most of whom are Gen X, Y, and millennials. They also realize that products such as craft beer are best when consumed fresh, which is why it is best to get it fresh from the source.
That also has something to do with the popularity of the India Pale Ale, a hoppy style of beer that is the top style sold by craft brewers. In fact, one out of every five craft beers sold is an IPA. Hops fade over time, so the style is best consumed as fresh as possible. And in the mind of a craft drinker, creating jobs while drinking fresh beer is the best possible outcome.
Opening a brewery is the new American dream, and the quintessential American success story. And even just as a beer drinker, you’re not just buying into a six-pack, you’re buying into an idea. And when you do make that purchase, you’re also buying into big economic growth, venues to share ideas, and community-building. Time to raise a pint.
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What’ll you have?
12.2%
amount of the national beer market craft beer accounts for
$22.3 billion
value of craft beer market
$105.9 billion
overall beer market
$55.7 billion
contributed to the U.S. economy by craft beer
425,000 jobs
created by craft beer market
12.8%
sales growth of craft beer over last year
0.2%
sales growth of beer overall over last year
$455 million
S.C. craft beer industry in 2015, from $255 million in 2012
3,500
employed by breweries and brewpubs in S.C.
50%
S.C. beer production from the Upstate
Source: Bristow Beverage Law
