Abstract

This is a new day in age for the beverage industries. For many years, adults around the world
have been able to indulge themselves into the world of beer. Here in America, adults are
venturing away from the more well-known beers and trying newer and bolder beverages.
Microbreweries are becoming more and more prominent in todays culture. The many different
styles and flavors of craft brews are putting a serious damper on the bigger companies we all
know and love. These smaller, yet growing companies are putting companies like Miller Coors
and Anheuser-Busch in a competitive vice. Charlotte is one of the fastest growing cities in the
country, so many microbreweries are popping up around the area to cater to the more than
plentiful craft beer enthusiast. I work in this industry and the distributor I work for carries over
ten brands of craft beer. Every craft beer has its own distinct flavor and aroma which tantalizes
your sense of smell and taste.

How is the Craft Beer Industry Taking Over?

As time progresses in the world of beer, many more microbreweries are emerging. The
already established breweries are in constant competition of the industry. The biggest issue for
big breweries is that people today look to veer in the direction of new and unknown. Many craft
beer enthusiasts are beginning to create their own concoctions and if they are successful they
start to produce on a larger scale. Everyday there are new microbreweries opening nation-wide.
These little guys are starting to create a financial burden for the big guys. The big guys
would be Anheuser-Busch and Miller Coors. These two breweries are the two largest domestic
breweries in the United States. Since there are so many new breweries opening nationwide I
would like to focus on the Charlotte area and mainly the state of North Carolina. A very large
factor in these microbreweries taking over is the variety they offer; this variety include styles and
flavors.
When talking about the different types of breweries there are a few that need mentioning.
First you have your microbreweries. These breweries produce less than fifteen thousand barrels
of product per year. Within this same year, seventy-five percent of all sales must be sold off site,
or in stores and restaurants or bars. Next you have brewpubs. Brewpubs are the new up and
coming way to enjoy the freshest craft beer possible. The most significant guideline to be
considered a brewpub is that the sales of product within a years time must not exceed seventyfive percent sold off site and twenty-five percent or more sold on site, or in the brewery itself.
Many brewpubs are restaurant based such as Rock Bottom or NoDA breweries. The following
two types of breweries are the most common sort that most people can relate to. These two types
are regional and large breweries. Regional breweries will produce fifteen thousand to six million
barrels of beer per year and the large breweries will produce over six million barrels of beer per

year. An example of a regional brewery would be Foothills brewery in Winston-Salem, NC and a

large brewery would be SAM MillerCoors and Anheuser-Busch which most people are familiar
with.
The distribution center I work for is Carolina Premium Beverage. I am a delivery driver
so I get to see products before the public sees them. Our main product is from the Miller Coors
brewery. However, if I were to get the operations manager spot I would have to pay attention to
what the market was doing across the board. In 2008, there were approximately 1,521
microbreweries, which that number drastically grew to 3,418 in 2014 (Davis, 2015). These
numbers are astounding. Some, but not all of the smaller breweries are being bought out by the
larger breweries in order for them to help keep the competition low. Doing this also enables the
larger breweries to market towards the craft beer enthusiasts. At the same time, they can market
to downplay the growth of the smaller breweries. According to the Brewers Association, more
than 3,400 breweries are operating in the United States with more than 2,000 in the planning
phase (Davis, 2015).
The Charlotte area is one of the fastest growing cities in America and because of this
growth many of the microbrews target the population in and around Charlotte. The company I
work for delivers to Charlotte and the immediate areas surrounding the city. The typical craft
beer drinker is young males (Davis, 2015) and Charlotte has plenty of those to go around.
Asheville, North Carolina is home to a few very popular breweries in the area. To mention a
couple specifically are Highland and Foothills. Foothills is one of the breweries we distribute out
of our facility. There is an active movement to support the craft beer industry which is the buylocal movement. In many of the specialty beer stores I deliver to there are signs and propaganda
supporting the movement to support small breweries. We know that our distributor is one of the

top distributors in the country and the amount of craft beer we flood in to the market is extremely
high. We have been recognized by many different breweries for helping them get their name out
there. The buy-local movement, coupled with a political push against big corporations, skews
toward local brewers. Taste preferences have evolved to expect choices and local flavors in
cheese, coffee, and bread. Why not beer? (Raasch, 2012) . Paul Gatza who is the director of the
Brewers Association says Beer drinkers are much more knowledgeable than 15 years ago."
(Raasch, 2012). I see this to be a true statement as well because of the amount of beer enthusiasts
that venture into the business side of brewing and marketing their product into the mainstream
audience. The craft brewing business is booming right now and seems to do nothing but grow.
The growth of the craft beer business is booming. The Brewers Association President,
Charlie Papazian, stated "Contrary to what some people are saying, we are not in a bubble, we
are knee-deep in foam, and the level is rising." (Raasch, 2012). This is great for the people that
enjoy the different varieties that craft brewers provide. This, however, is not good for the big
breweries who are constantly battling with the microbreweries. One thing that can and might hurt
the industry of craft beer are the people that think they can just brew whatever they want and the
quality is lower. This could put a damper on the entire industry in itself. Craft beer has
introduced a new direction of beer by implementing many different varieties and flavors they are
sure to please people with different tastes and interests. It is interesting that now people are
looking at beer as a dessert rather than a beverage. Growler USA is a company that helps craft
beer hit the market and get exposure. The brewpub, which already has 20 locations in
development, offers up to 100 taps of craft beverages, alongside high quality cuisine that
complements exactly what you're drinking. (NewsRX, 2015). When a franchise opens, the
franchisee must agree to not offer macro-brews or imports. The entire business model is

surrounding the craft beer movement. Dan White, the CEO and founder of Growler USA says,
"Craft beer is a business that's evolved into an industry and one I expect will continue to grow
with great momentum." (NewsRX, 2015).
As you can see there is much to look at when considering the market of beers. The big
companies have much to worry about and are in constant battle over the market with the growing
craft beer industry. Working at a distribution center in the Charlotte area gives me the advantage
of seeing what is hitting the market. We also get news from the small breweries about what is up
and coming for the next season. Craft beer is slowly but surely becoming the beverage of choice
for not only for young adults but more mature adults as well. If you venture into a bar in
Charlotte, there will most likely be more craft beers offered than domestics or imports. Nobody
is certain what is in the future for these small craft breweries, but for now, they will slowly climb
the hill and keep their stake in the market.

References
Davis, J. (2015, December). Will the Beer Bubble Burst. Retrieved from ProQuest:
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NewsRX. (2015, October 22). Growler USA; Growler USA Taps Booming Craft
Beverage Industry with New Franchise. Retrieved from ProQuest:
http://search.proquest.com.ezproxy.rccc.edu/docview/1722245138/fulltext/81601389A8224784P
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Raasch, C. (2012, May 25). Craft beers brew up booming business: Buy-local movement
aids sales of locally made libations. Retrieved from ProQuest:
http://search.proquest.com.ezproxy.rccc.edu/docview/1016143766?accountid=13601