Study: Maine beer industry to see major growth
A new economic impact study said Maine’s craft beer industry — which is essentially the state’s entire beer industry - could double in the next four years.
But the executive director of the Maine Brewer’s Guild, said that’s a conservative estimate because the study was based on the 35 Maine craft breweries that were operating in 2013 — a number that has since grown to 53, with six more expected to open this year.
“We were aware anecdotally by just the number of breweries that were opening so we wanted to put some facts and figures behind what’s happening behind this industry,” Sean Sullivan, the guild’s executive director told Mainebiz. “Obviously from a legislative perspective, it’s important for state and federal legislators to know how important this industry is and its trickle down effect” on farms, tourism and other industries.
The study, which was commissioned by the Maine Brewer’s Guild and conducted by two professors at University of Maine School of Economics, found that Maine breweries sold $92.6 million worth of beer while employing almost 1,500 workers. It also found the Maine beer industry generated an additional $35.5 million from sales at brew pubs, restaurants and retail shops.
With revenue from peripheral industries, like festivals, hotels and beer tours. the study estimated Maine craft beer industry resulted in an annual statewide economic impact of $189 million.
Based on the survey of Maine’s 35 craft breweries in 2013, the companies said they planned to ramp up production by 36% between 2013 and 2014, and by 200% by 2018.
Sullivan said he wouldn’t publicly release the study because its proprietary information for his trade group, which he said is what other trade groups do with their own studies.
To be considered a craft brewery, brewers must abide by three major requirements, according to the national Brewer’s Association. They must produce 6 million barrels of beer or less annually, have less than 25% of its company “owned or controlled by a beverage alcohol industry member that is not itself a craft brewer,” and have a majority of its total beverage alcohol volume derived “from traditional or innovative brewing ingredients and their fermentation.”
Sullivan said that means all of Maine’s 53 current breweries, which stretches from Shipyard Brewing Company in York County to Kennebec River Pub & Brewery in Somerset County, are considered craft breweries.
A majority of Maine’s craft breweries are members of the Maine Brewer’s Guild, which puts them on the map for the Maine Beer Trail, a passport-style card for craft beer fans that encourages them to visit and tour different facilities across the state. If users of the card visit 10 listed locations and get initials from each facility, they can send it to the guild for a free T-shirt.
Sullivan said this incentive is one way he can measure of the level of interest for people wanting to tour the facilities of different craft breweries. Since the Maine Beer Trail program started in 2009, he said he’s been receiving hundreds of completed passes a year.
“You’d be amazed at who has visited 10 or more breweries,” he said. “I’m literally sitting in front of boxes of them but I haven’t taken the time to go through them yet.”
In addition to the craft breweries themselves, Sullivan said there are also a string of events and festivals designed to unite craft beer lovers, which can also help stimulate the economy.
“Almost every brewery is doing events constantly to engage in their own community,” he said.
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