Last Call: BA Economist Breaks Down Craft Trends; Taproom Openings Abound

Bart Blogs: Craft Still on Pace for 7 Percent Growth in ‘16

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Did the slowdown in craft beer continue in the third quarter? That’s the question Brewers Association chief economist Bart Watson attempted to answer in his latest blog post on the organization’s website.

According to Watson, craft growth is still hovering around eight percent on the year — a figure he landed on by crunching data from research firms IRI Worldwide and GuestMetrics, as well as the Alcohol and Tobacco Tax and Trade Bureau and the BA.

By his calculations, BA-defined craft beer trends will slow to about five percent in IRI-tracked off-premise channels in 2016. And despite multiple GuestMetrics reports throughout the year that suggest on-premise craft volume and dollar sales will decline in 2016, Watson believes that increasing taproom and brewery sales, as well as export growth, will offset softer and worsening craft trends in more traditional channels.

“Anything below 7 percent overall would be surprising given the strong premises-use growth, which has clearly been a lifeline for many brewers as scan has slowed,” he wrote.

His assessment also dives deep into geographic trends as well as reasons why seasonal and on-premise sales are in decline. Give it a read.

From Coast to Coast, Craft Brewers Plan New Breweries and Taprooms

Modern Times Heads to Anaheim

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San Diego’s Modern Times Beer is planning to open a 32,000 sq. ft. location in downtown Anaheim complete with sour brewing capabilities, a “showpiece” Modern Times café and restaurant, and even a swimming pool.

“We are stoked out of our frickin’ minds to announce the next major research facility in our ongoing investigation into the art of partying,” the company wrote on its website.

Dubbed “Leisuretown,” the new project will boast “astoundingly good coffee, decadent food, boundary-pushing beer, tasteful shopping, and leisurely swimming,” according to a release.

Modern Times is the third notable craft brewery to open an Anaheim location in recent months. Golden Road and Karl Strauss opened their respective locations near Angel Stadium this summer.

Northern United Brewing to Open Restaurant & Brewer in Hyde Park

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Michigan’s Northern United Brewing — best known for its Jolly Pumpkin Artisan Ales line — this week announced plans to open a Jolly Pumpkin-branded restaurant and bar in Chicago’s Hyde Park neighborhood in 2017.

“We’re excited to expand our restaurants outside of Michigan,” partner Ron Jeffries said via the release. “Hyde Park is the perfect location for us, the vibrant neighborhood shares an eclectic vibe with that of our company and Chicago’s craft beer scene parallels some of the greatest in the US.”

According to the release, the company plans to serve craft beers, distilled spirits and wines from its entire portfolio — which includes Jolly Pumpkin, North Peak Brewing Company, Nomad Cidery, Civilized Spirits and Bonafide Wines — at the 5,800 sq. ft. location (its fourth).

Down the Road Beer Co. and Bushnell Craft Brewing Plan East Coast Breweries

Down the Road Beer Co. announces the launch of its 10th beer and fall seasonal: Henzelmann’s Festbier to debut at the Everett Village Festival on September 17!

Meanwhile, a pair of very small craft companies are also planning to open their own taprooms in 2017.

Boston-area craft outfit Down the Road Beer Co. plans to open 12,000 sq. ft. location in Everett, Mass. capable of producing and canning roughly 1,200 barrels, according to Boston Magazine. That location will include 4,000 sq. ft. of taproom and retail space, the Magazine noted.

Meanwhile, Washington’s Bushnell Craft Brewing Company plans to open what it has dubbed “the Brew Barn.” Situated on four acres, the new location will house a 10-barrel brewhouse and four 10-barrel fermentation tanks, according to a post on the brewery’s Facebook page.

Golden Eagle to Purchase Illinois Distributor

Missouri’s Golden Eagle Distributing will acquire Jacksonville, Illinois’ A. Gaudio & Sons, Inc., an Anheuser-Busch wholesaler, according to a joint release from both companies.

“It has been an honor and a pleasure for the Gaudio family to serve the people of West Central Illinois for 69 Years,” president Steve Gaudio said via the release. “A. Gaudio and Sons has been a family run company from the beginning and I’m pleased for our employees and customer that Golden Eagle is also a family-owned business with similar values.”

Golden Eagle will continue to operate and distribute from the A. Gaudio & Sons current warehouse in Jacksonville, it said.

The sale is expected to close on November 18. Once it does, Golden Eagle Distributing will own and operate distributorships in Kirskville, MO, Hannimal, MO, Mt. Pleasant IA and Jacksonville, IL.