Brewers Association (BA) president and CEO Bob Pease acknowledged 2023 was “challenging for many small and independent brewers” in a recorded video accompanying the organization’s annual report.
“Facing slowing growth and heightened competition, the Brewers Association doubled down on our resources and our advocacy to help you find a smarter, more efficient and profitable business,” he said.
Pease recapped the BA’s lobbying efforts from the year, which included its support of the USPS Shipping Equity Act, which would allow the U.S. Postal Service to ship beverage-alcohol directly to consumers in states where permitted, and the BA’s work to influence the Alcohol and Tobacco Tax and Trade Bureau (TTB) to increase the number of ingredients it exempts from formula review to 103.
The BA also touted Collab Hours, its educational webinar series which hosted 23 sessions in 2023; its revamped online training center with courses in beer quality, brewery safety and draft line management; and its technical and quality resources.
For the trade group itself, nearly all of the BA’s revenue drivers declined year-over-year (YoY) in 2023, according to the organization’s annual report. The BA’s overall revenue declined -2% YoY, to $22,914,025.
Revenue from events, the BA’s biggest income source by far, declined -2% YoY, dipping to $13,886,191 in 2023. Membership revenue, its second-largest revenue driver, also recorded a -2% decline YoY, dropping by -$85,771, to $4,268,747.
Advertising and sponsorships, the BA’s third-largest revenue source, was roughly flat, declining -$514, to $3,413,383.
The declines in revenue were offset by savings in seven expense categories:
- Legal fees declined -69%, to $34,255;
- Event operations declined -7%, to $5,276,878;
- Marketing declined -13%, to $542,306;
- Printing declined -2%, to $366,070;
- Postage and shipping declined -15%, to $69,821;
- Cost of goods sold declined -19%, to $144,055;
- Outside services declined -14%, to $2,647,545.
Still, the BA had to pay more in other expense categories:
- Office administration increased +4%, to $797,015;
- Depreciation and amortization increased +26%, to $282,552;
- Salaries and benefits indeed +8%, to $8,501,655;
- Insurance increased +49%, to $195,506;
- Rent increased +6%, to $520,041;
- Travel costs increased +13%, to $1,530,759;
- Donations and grants increased +19%, to $214,194;
- All other expenses increased +35%, to $971,345.
In total, all expenses increased +1%, to $22,723,997.
The organization’s operational net was $190,028, a significant -77% decline from $840,532 in 2022.
On its 2023 balance sheet, the BA cited $8,264,684 in cash and $21,956,008 in reserves, marking +5% and +17% increases, respectively, from 2022.
The BA’s total assets in 2023 increased +7%, to $38,954,299.