The Brewers Association (BA), the trade group representing the nation’s small and independent craft breweries, nearly doubled its revenue in 2021 compared to 2020, according to the organization’s annual report.
In 2021, the BA’s total revenue was $17,338,027, a 78% increase compared to the $9,737,609 generated in 2020, when the pandemic forced the organization to cancel all the in-person versions of its events, its biggest revenue driver. However, revenue is only about two-thirds recovered from its pre-pandemic level of $27,127,742 in 2019, according to the BA’s stewardship report that year.
Last year, the BA hosted the Craft Brewers Conference in person, which boosted event revenue to $7,294,944, a steep increase over $1,701,215 in 2020. Over the last two years, the American Homebrewers Association’s HomebrewCon was hosted virtually and the Great American Beer Festival was celebrated at breweries throughout the country with a passport program. SAVOR, the BA’s annual beer and food pairing event, was canceled. Pre-pandemic, events brought in $16,173,153 in 2019, and $29,301,216 in 2018.
Events were the BA’s largest driver of revenue in 2021, unlike in 2020, when the organization drew most of its revenue from membership dues. Membership revenue declined -7% in 2021, to $4,508,011. Advertising and sponsorship revenue increased 15% in 2021, to $2,280,779.
None of the BA’s three largest revenue drivers has recovered to pre-pandemic levels. In 2019, the organization took in $5,148,687 in membership revenue and $4,648,272 in advertising and sponsorship revenue.
BA membership in all classes (brewery, brewery in planning, allied trade, distributor, craft beer retailer, individual and educational institution) reached 10,399 in 2021, up from 10,105 in 2020, but down from 10,966 in 2019. AHA membership has been declining steadily from 44,390 in 2019, to 38,904 in 2020, and 37,589 in 2021.
BA expenses increased 14%, to $15,201,904 – more than halfway recovered to pre-pandemic levels ($27,127,742 in 2019). Salaries and benefits were the organization’s largest expense, and increased nearly 10%, to $7,057,410 in 2021, still below pre-pandemic levels.
The loss of event revenue in 2020 forced the BA to lay off 35% of its staff. That year, salaries and benefits dropped to $6,424,847. Since those cuts were made, the BA has hired 12 new full-time employees, a BA spokesperson told Brewbound.
After salaries, the BA’s next largest expense line item in 2021 was outside services, on which the organization spent $2,087,738, up from $1,879,566 in 2020. Event operations were the third-largest line item ($1,832,877), which increased significantly compared to 2020 ($487,740).
The BA’s political action committee, BA PAC, suspended both fundraising and contributions when the pandemic began through 2021. BA PAC received $5,600 in unsolicited donations in 2021 and made only one “key donation” last year: $5,000 to Senate Majority Leader Chuck Schumer (D-NY), a spokesperson told Brewbound.
In 2020, before its financial activity was paused, BA PAC raised $24,019.25 and dispersed $14,500. The PAC donated $43,500 to federal candidates during the 2019-2020 election cycle, according to OpenSecrets. Of that, 52.87% went to Democrats and 47.13% went to Republicans.
The BA’s reserves increased to $21,809,946 in 2021 from $20,274,7750 in 2020. Its earnings increased to $3,672,653 in 2021, up from -$,010,626 in 2020.
Overall, the BA generated an operating gain of $2,136,123 in 2021, compared to an operating loss of $3,580,733 in 2020.
Editor’s note: This story was updated at 3:30 p.m. ET on Wednesday, March 2 to include additional information provided by the Brewers Association.