The best ways to brew a batch of beer is by using a traditional beer maker, according to the makers of some of the best-selling craft beers on the market.
Artisanal beer makers are increasingly becoming a household name, as consumers and business owners alike seek a new, cheaper way to make their favorite beverages.
The industry has grown to include about 1.2 million craft breweries, making it the third-largest industry after the pharmaceutical and retail sectors.
Most craft breweries make only one or two varieties of beer, but they also offer craft cocktails, home-brewed beer, specialty beers and more.
The Wall Street J. Paul Getty ImagesThe industry is booming, but some experts warn the craft brewers are in for a rough ride as their popularity increases.
The Craft Beer King of Bakers and Distillers Association says the craft beer industry is experiencing a steep decline in the number of craft brewers, as many craft breweries have moved to the production of higher-end products.
“We’re seeing a lot of growth and demand,” said Brett Miller, president of the association.
“But we are also seeing the industry stagnating in the retail market, and that’s when the craft breweries get hit the hardest.”
The craft brewers aren’t alone in their struggles.
Beer drinkers have been getting older.
Many have a retirement or are nearing retirement, making beer a more attainable luxury for a younger demographic.
Craft beer is also more expensive than wine and other alcoholic beverages, making craft beer a harder sell to younger drinkers.
But Miller says craft beer’s growth is driven largely by the popularity of craft beer and the rise of microbreweries.
“If you’re going to start an independent brewery and have a lot less than 10,000 barrels, it can be a challenge,” Miller said.
“The industry, for all the things it does, is going to be slow to catch up with demand.”
Brewers say they’ve faced competition from breweries like MillerCoors, who also produce a wide variety of craft beers, but also more established craft brewers.
They point to the popularity and high margins of the craft beers as a key reason why they are able to charge higher prices.
“The big breweries are the ones that are charging more for their products, which makes them more attractive to consumers,” said Chris Davenport, president and chief operating officer of New Belgium Brewing Co. “It’s a very healthy market for beer.”
Beer makers are also struggling to maintain their craft brewery image, which is often challenged by the fact that many craft beer brands have more than one brand name.
For example, New Belgium’s popular Belgian Strong Ale, which features a trademark “Strong Beer” logo, was recently discontinued by the craft brewer after it was criticized for using the same beer for packaging and marketing.
“I don’t see any big brands coming in to the market,” Miller told The Wall St. J.P. Morgan analyst Alex Tabarrok.
“We’re not the only ones with that problem.
There’s plenty of smaller brands out there.
The bigger companies have been doing it for decades.”
The lack of competition in the industry also is hurting the industry.
Miller said a number of large breweries have recently taken their brands off the shelves.
In an attempt to diversify its product offerings, MillerCoins Brewing Co., a subsidiary of MillerCoils Inc., announced in January it would be discontinuing all of its flagship beers.
The move followed a series of recent losses.
In January, the company reported a net loss of $2.9 million, or $3.06 per share.
The company also said it had to buy back $1.1 billion in shares to keep its business afloat.