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Released September 12, 2014 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--A great deal of media attention is focused on the U.S. brewing industry, particularly the craft beer segment, where the landscape is in flux. Industrial Info is tracking $1.16 billion in active spending by U.S. beer makers, including more than $676 million for grassroot breweries.
Competition in the industry has been growing fast. However, some states are growing faster than others. North Carolina is the fastest-growing state for planned brewery projects, with 14% of the total, including grassroots breweries, for $234 million in investments. Wisconsin, New York and Florida come in next, each with 9% of the planned brewery investments, for a total of $170 million. Colorado and Texas each have 7% of the planned breweries, with combined investments of $98 million.
Capital expenditures in the Mid-Atlantic, Great Lakes, Rocky Mountains and West Coast regions continue to dominate brewery growth, with more than $790 million for expansions and upgrades. The Mid-Atlantic region contains the most growth, with almost 20 projects valued at more than $300 million.
The largest active projects in the Mid-Atlantic region include a $115 million grassroot craft brewery (150,000 square feet) by New Belgium Brewing Company (Fort Collins, Colorado) in Asheville, North Carolina. The Great Lakes region has $175 million in brewery expansions and upgrades, with Wisconsin and Michigan in the lead.
View Project Report - 300047413
The Rocky Mountains region includes more than $160 million in capital and maintenance expenditures, while breweries in the West Coast region are planning to invest $140 million for expansions and upgrades.
Mass Market Breweries Versus Craft Breweries
In 2006, the average Anheuser-Busch (St. Louis, Missouri) brewery produced 12 million barrels of beer annually. To put that in perspective, using a sample of 20 planned breweries being tracked by Industrial Info, the average new brewery will have a maximum production capacity of about 100,000 barrels per year. Each of these new breweries are dwarfed by the typical Anheuser-Busch facility, and has less than 1% of the total production. However, the aggregate effect of the new and smaller breweries can be roughly estimated at 5 million barrels of beer per year, or about 41% of what one Anheuser-Busch facility can produce per year. Anheuser-Busch is a subsidiary of Anheuser-Busch InBev (NYSE:BUD) (Leuven, Belgium).
Additionally, Industrial Info is tracking $612 million in active investments for brewery expansions. Using a sample of 45 brewery expansion projects, the average expansion adds about 87,000 barrels of production per year. The median is closer to 46,000 additional barrels, accounting for much smaller breweries. Applying both these numbers to the total number of expansions, the range is between 4 million and 8 million additional barrels per year.
As a result, the combination of new breweries and expansions might put out between 9 million and 13 million barrels per year, and could out-produce the typical Anheuser-Busch facility. There has been much speculation about how much further the craft beer industry can expand, but the brewery giants may face a harsher market if the momentum for new and expanding breweries continues for the next few years.
Industrial Info's database of active capital and maintenance expenditures of the Food & Beverage Industry across North America and the Sugar Processing Industry and Water Desalination Segment worldwide shows current expenditures of $41.3 billion and more than 2,700 active projects. The North American portion comes out to more than 2,000 active projects that total more than $29 billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Competition in the industry has been growing fast. However, some states are growing faster than others. North Carolina is the fastest-growing state for planned brewery projects, with 14% of the total, including grassroots breweries, for $234 million in investments. Wisconsin, New York and Florida come in next, each with 9% of the planned brewery investments, for a total of $170 million. Colorado and Texas each have 7% of the planned breweries, with combined investments of $98 million.
Capital expenditures in the Mid-Atlantic, Great Lakes, Rocky Mountains and West Coast regions continue to dominate brewery growth, with more than $790 million for expansions and upgrades. The Mid-Atlantic region contains the most growth, with almost 20 projects valued at more than $300 million.
The largest active projects in the Mid-Atlantic region include a $115 million grassroot craft brewery (150,000 square feet) by New Belgium Brewing Company (Fort Collins, Colorado) in Asheville, North Carolina. The Great Lakes region has $175 million in brewery expansions and upgrades, with Wisconsin and Michigan in the lead.
View Project Report - 300047413
The Rocky Mountains region includes more than $160 million in capital and maintenance expenditures, while breweries in the West Coast region are planning to invest $140 million for expansions and upgrades.
Mass Market Breweries Versus Craft Breweries
In 2006, the average Anheuser-Busch (St. Louis, Missouri) brewery produced 12 million barrels of beer annually. To put that in perspective, using a sample of 20 planned breweries being tracked by Industrial Info, the average new brewery will have a maximum production capacity of about 100,000 barrels per year. Each of these new breweries are dwarfed by the typical Anheuser-Busch facility, and has less than 1% of the total production. However, the aggregate effect of the new and smaller breweries can be roughly estimated at 5 million barrels of beer per year, or about 41% of what one Anheuser-Busch facility can produce per year. Anheuser-Busch is a subsidiary of Anheuser-Busch InBev (NYSE:BUD) (Leuven, Belgium).
Additionally, Industrial Info is tracking $612 million in active investments for brewery expansions. Using a sample of 45 brewery expansion projects, the average expansion adds about 87,000 barrels of production per year. The median is closer to 46,000 additional barrels, accounting for much smaller breweries. Applying both these numbers to the total number of expansions, the range is between 4 million and 8 million additional barrels per year.
As a result, the combination of new breweries and expansions might put out between 9 million and 13 million barrels per year, and could out-produce the typical Anheuser-Busch facility. There has been much speculation about how much further the craft beer industry can expand, but the brewery giants may face a harsher market if the momentum for new and expanding breweries continues for the next few years.
Industrial Info's database of active capital and maintenance expenditures of the Food & Beverage Industry across North America and the Sugar Processing Industry and Water Desalination Segment worldwide shows current expenditures of $41.3 billion and more than 2,700 active projects. The North American portion comes out to more than 2,000 active projects that total more than $29 billion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
