Brewers Association: Majority of Top 50 Craft Breweries Return to Growth in 2021; Top 10 Craft Breweries All Lose Share

As the on-premise began to reanimate after a year of pandemic-driven closures and restrictions, 28 of the top 50 Brewers Association-defined (BA) craft breweries posted volume increases in 2021, according to data published today in the May/June edition of the trade group’s New Brewer magazine.

Last year, the BA reported craft beer’s volume declined -9% in 2020 – the first time the trade group that represents the nation’s small and independent breweries recorded a volume loss in the industry’s modern era – and a majority (36) of the top 50 saw their output decline compared to 2019.

Against that backdrop, 2021’s numbers seem rosy. However, the top 50’s volume growth (+3% year-over-year, to 12.5 million barrels) lagged behind the overall craft industry (+7.9%, to 24.8 million barrels), which still has not caught up to the 26.3 million barrels of craft beer produced in 2019.

The top 50 craft breweries accounted for 50.3% of all craft beer produced in the U.S., and lost 2.57% in share to the more than 9,000 other craft breweries in the U.S. Among the top 50, the majority (29) produced 100,000 barrels of beer or more.

The country’s largest craft brewer, Pottsville, Pennsylvania-based D.G. Yuengling & Son – which falls under the BA’s definition of a brewery that is not more than 25% owned by another beer manufacturer and makes fewer than 6 million barrels of beer per year – did not report its production levels for the second year in a row, but agreed to be ranked, as did No. 16 Abita and No. 34 Kings & Convicts Brewing (owner of Ballast Point).

Five of the top 50 were flat compared to their 2020 production levels: No. 4 Duvel Moortgat USA (Firestone Walker, Boulevard, Brewery Ommegang) at 677,812 barrels, No. 18 Stevens Point at 130,000 barrels, No. 20 Odell Brewing at 127,370 barrels, No. 31 Alaskan Brewing at 97,250 barrels, and No. 45 Saint Arnold at 60,203 barrels.

Within the Duvel Moortgat USA family, Firestone Walker accounted for the bulk of volume. The Paso Robles, California-headquartered brewery increased production +14%, to 528,188 barrels. Kansas City, Missouri-based Boulevard and Cooperstown, New York-based Brewery Ommegang’s output increased +8%, to 177,500 barrels.

Of the top 10, No. 2 Boston Beer (Samuel Adams, Dogfish Head, Angel City, Coney Island) recorded the largest volume increase, growing +6%, to an estimated 1.8 million barrels of beer. Other than Yuengling and Boston Beer, only No. 3 Sierra Nevada crossed the 1 million-barrel mark among BA-defined craft brewers. Sierra Nevada’s output declined -1%, to 1.1 million barrels. No. 5 Gambrinus (Shiner, Trumer) declined -2%, to 520,312 barrels.

In its last year included in the BA-defined data set following its November 2021 sale to Kirin-owned Lion Little World, No. 6 Bell’s posted +5% volume growth, to 490,000 barrels. New Belgium, which Lion acquired in 2019, shipped 1.08 million barrels last year, the BA reported.

No. 10 SweetWater, which Canadian cannabis company Tilray acquired in late 2020, increased production +1%, to an estimated 262,500 barrels. In late 2021, Tilray announced it had struck deals to acquire California-based craft brands Green Flash and Alpine. Those acquisitions and SweetWater’s westward expansion have the ability to propel the platform to steeper growth in 2022.

Fourteen of the top 50 craft breweries reported a decline in production in 2021, compared to 2020, including five of the top 10 producers: No. 3 Sierra Nevada (-1% to 1,103,160 barrels); No. 5 Gambrinus (-2%, 520,312 barrels); No. 7 CANarchy (-5%, 455,000 barrels); No. 8 Artisanal Brewing Ventures (-7%, 404,743 barrels); and No. 9 Stone Brewing Company (-2%, 326,281 barrels).

CANarchy – a rollup of seven brands, including Cigar City, Oskar Blues, Wild Basin, Deep Ellum, Wasatch, Squatters and Perrin – was acquired by Monster Beverage Corporation in February for $330 million in cash. As noted in the New Brewer, CANarchy remains a BA-defined craft brewery, as Monster “is not a manufacturer of beverage alcohol.”

CANarchy reported flat production growth in 2020, with 479,626 barrels produced, after reporting double-digit growth in 2019 (+14%). The company was surpassed by Bell’s Brewery in 2021, falling from No. 6 to No. 7.

Artisanal Brewing Ventures (ABV) is also a collection of craft breweries, including Victory Brewing, Sixpoint and Southern Tier. The company maintained its No. 8 ranking, despite reporting a decline in production for the first time in at least three years (+9% in 2020, +29% in 2019 and +21% in 2018).

Each of the top 10 craft brewers lost share in 2021, with Sierra Nevada losing the most (-0.42 sharepoints), followed by CANarchy (-0.26 sharepoints), Duvel Moortgat USA (-.23 sharepoints) and Gambrinus (-0.22 sharepoints).

Beyond the top 10, No. 11 Deschutes’ volume increased +1%, to 260,712 barrels, No. 12 New Glarus’ production increased +13%, to 232,539 barrels, and No. 13 Brooklyn Brewery’s volume increased +18%, to 216,119 barrels. In 2020 and much of 2021, New York, Brooklyn’s home market, had stricter on-premise protocols than many other states and was slower to recover. Similarly, California-based Gordon Biersch (No. 15) saw its volume bounce back in 2021, increasing +52%, to 141,902 barrels, after pandemic-driven restrictions began to lift.

Top 50 newcomer Athletic Brewing rocketed onto the list with +177% growth. Last year, the Connecticut-based non-alcoholic craft beer maker’s volume increased year-over-year by 66,500 barrels to 104,000 barrels, making it the 27th largest craft brewer in the country.

Vermont-based Fiddlehead Brewing (No. 50), also making its top 50 debut, recorded the second-highest growth, increasing production +83%, to 51,666 barrels, a 23,362 barrel increase year-over-year.

After Fiddlehead, No. 44 Maui Brewing posted the next steepest incline, with a +55% increase in volume, to 62,592 barrels.

Other breweries with strong growth compared to 2020 include:

No. 17 Minhas (+11%, to 137,077 barrels);
No. 19 Great Lakes Brewing (+21%, to 127,835 barrels);
No. 23 Allagash (+34%, to 117,978 barrels);
No. 25 Georgetown Brewing (+25%, to 110,816 barrels);
No. 26 Three Floyds (28%, to 106,638 barrels);
No. 32 Narragansett (+13%, to 97,225 barrels);
No. 33 Rogue Ales (+17%, to 88,000 barrels);
No. 38 Revolution (+10%, to 72,980 barrels);
No. 39 BrewDog (No. 41 in 2020), +15% to 72,000 barrels;
No. 42 Creature Comforts (+27%, to 63,381 barrels);
No. 46 Scofflaw Beer (+16% to 55,811 barrels).

BrewDog initially did not make the top 50 list – published on April 5. “Revised data” was submitted after publication of the list that placed BrewDog at No. 39 and bumped North Coast out of the top 50, BA chief economist Bart Watson told Brewbound.

Breweries beyond the top 10 but within the top 50 that posted single-digit growth include:

No. 22 Summit Brewing (+8%, to 118,037 barrels);
No. 28 Rhinegeist (+6%, to 103,561 barrels);
No. 29 Kona Brewing’s Hawaii operations (+5%, to 100,000 barrels);
No. 35 Flying Dog (+4%, to 81,231 barrels);
No. 37 Lost Coast (+2%, to 75,500 barrels);
No. 47 Shipyard (+4%, to 55,119 barrels);
No. 48 Left Hand (+5%, to 53,576 barrels).

Five of the top 50 producers recorded double-digit declines, led by Eugene, Oregon-based Ninkasi Brewing Company (-23% to 64,606 barrels), ranked No. 41, followed by No. 43 21st Amendment Brewery (-21%, 62,843 barrels); No. 49 Modern Times (-17%, 53,371 barrels); No. 21 Harpoon (-16%, 123,345 barrels); and No. 40 Surly (-13%, 67,313 barrels).

Ninkasi has reported steady declines in production since at least 2017: -5% in 2020, -2% in 2019, -2% in 2018 and -8% in 2018.

2021 marks the third consecutive year of production declines for Harpoon (-16% in 2020, -5% in 2019), after a flat year in 2018, according to the BA. Shipments for Harpoon, the Boston-based brewery under Mass. Bay Brewing Co., declined -6% in 2021, Mass. Bay CMO Jon London told Brewbound in February. The brewery is hoping to combat losses with its League family of brands – Rec. League hazy pale ale and Big League hazy double IPA – which posted positive growth in 2021.

Modern Times reported a production decline for the second year in a row, after a -9% decrease in 2020. In February, the company announced the closure of four taproom locations, citing “four straight years of rapid, costly expansion followed by an unforeseen and financially devastating global health crisis, and an industry-wide decline in sales,” which resulted in stretched “finances and company culture.”

Modern Times entered a court-ordered receivership sale process in April, following litigation from California Bank & Trust over outstanding credit ($12.9 million across three loans, according to an investor notice).

It was also the third consecutive year of production decline for Twin Cities, Minnesota-based Surly, which decreased -17% in 2020 and -3% in 2019. About 80% of the brewery’s production decline – down about 20,000 barrels since 2019 – can be attributed to on-premise sales in Surly’s hometown, Bill Manley, Surly VP of marketing, told Brewbound earlier this year.

Other producers in the Top 50 with reported declines include: