Craft beers, which originated as small-batch brews and have become increasingly popular in recent years, are still very much a niche industry.
But some big companies have stepped up to the plate and launched craft beer-specific brands, including craft brewers MillerCoors Brewing Co. and Anheuser-Busch InBev.
The craft beer craze, which started in the late 1990s and has grown exponentially in recent decades, has sparked a new wave of craft beer startups.
This is where the craft beer trend fits in, says Scott Flanders, an investor at Benchmark Investments who has written extensively about craft beer.
“The biggest question I have is how big a player is craft beer right now?
The answer to that is, there is not one,” Flanders says.
That means there are a number of big companies out there making a lot of money from the craft beers, but only a handful of them have a significant presence in the marketplace.
“What we’ve found over the last few years is that it’s not necessarily that big of a market share,” says Flanders.
“There are so many big players in the market, and they’re not competing on price.”
One of the reasons the craft market is so underserved is the fact that it has become a highly fragmented market, with multiple brands competing for customers and sales.
While there are still a few big brands in the industry, the bulk of their business is coming from small craft breweries.
This has led to a number more companies launching craft brands than in the past.
But there is still a lot to learn about how craft beer has been embraced in the United States.
“People have always loved beer, and now the craft breweries are getting more recognition,” says Josh Drexler, the founder and CEO of New Belgium Brewing Co., which is a subsidiary of Anheaudbeek.
“It’s become an incredibly valuable brand.
That’s what I’m excited about.”
Here’s how to know if you want to invest in craft beer This is a very big category.
Most people don’t even know that there are more than 30 craft breweries in the country, and that’s how many are actually profitable.
That includes craft breweries that brew in the U.S., Canada, Mexico, China and other countries.
A big part of the reason there are so few breweries is because most brewers don’t have the financial means to expand, according to Drexlers.
And many of them don’t brew the beers that they say they do.
For example, Anheauven’s St. Louis-based brewery, which sells beer at bars and restaurants, doesn’t have a brewery or taproom.
Instead, it’s a warehouse that holds brewing equipment and supplies.
“When you’re doing a brewery, you’re going to have a lot more work to do than an ordinary brewery,” says Drexles, who says he was able to raise $3 million from investors after New Belgium was founded in 2013.
In addition, it costs a lot less to grow a brewery than a typical restaurant.
It can take six months for a brewery to get to a full capacity, and then it’s about two years to open a taproom and grow a market.
So there’s a lot that’s still unknown about what’s going on with the craft sector.
“If you’re interested in it, I think it’s an exciting space to be a part of,” says Michael Jorgensen, founder and COO of Craft Brewers Alliance, a nonprofit trade group that promotes and protects the craft brewing industry.
“I think it will be interesting to see how it plays out.”
If you want more craft beer coverage, including news and opinion, visit the WSJ website.