That’s the takeaway. For details, see the results of our economic survey.
If you want to be an allied trade member of the Guild, you have until November 14, 2014, to join the Guild and get on our Mississippi Brewery Trail Map. This map will be distributed in every state welcome center in Mississippi. Your business can be prominently identified as an official Craft Beer Destination in Mississippi.
Payment plans are available. Contact the Guild directly to arrange an easy monthly draft. Allied trade memberships are only $500.00.
The Brewers Association Chief Economist provides data on the growing economic powerhouse that is the microbrewery tap room
The money quote:
Seriously, the tap rooms of today are the manufacturing employers of tomorrow. Don’t believe me? In South Carolina, 12 breweries have opened since the state’s pint law (150% increase). How many employees have those 12 breweries taken on? How many more will they add as they grow?
Fairhope Brewing Company will increase their capacity by 600% thanks in part to the economic benefits of a taproom. Fairhope’s capacity is currently 700 barrels a year; by the end of 2015, they will exceed 4,000 barrels. Alabama’s beer laws allow breweries to sell directly to the consumer under strict limits and conditions: namely, they can only sell samples for on-site consumption to consumers, and all other sales have to be through a distributor and the three tier system.
Jim Foley, Fairhope’s managing partner, told the MBG, “Without an on-premise sampling room, it would be virtually impossible to make a profit on a system of our size (ten barrels). The tasting room provides us with somewhere around half of our total revenue (including beer and merchandise sales as well as private event fees), but only accounts for some 20% of our total volume of beer sold.”
As a result, in two years of operation, Fairhope will sextuple its capacity, and double its number of employees. This expansion was made possible in large part due to the revenues coming from direct sales to its taproom patrons, which was done without without undercutting their local retailer, or damaging the three tier system. According to the 2013 Alabama Brewers Guild Survey, year over year direct sales decline as a percentage of overall sales, and are expected to decline as packaging breweries are able to sell more of their product through traditional retailers.
As much as we love Fairhope’s beer here at the MBG and applaud their success, we deeply regret that these opportunities just don’t exist for Mississippi’s breweries. We’ve already lost one Mississippi brewery, due in part to the restrictive marketplace conditions in Mississippi. Help us grow from a fledgling manufacturing industry; join the Guild and spread the word!
The Mississippi Brewers Guild was formed to promote Mississippi’s craft brewing industry and enhance the culture fostered by its members.
The core voting membership of the guild consists of licensed Mississippi breweries and brewpubs actively engaged in the brewing of craft beer. Businesses in industries who do business with the brewing industry are able to join as non-voting Allied Trade members. Enthusiasts are encouraged to join BOMB! – Belovers of Mississippi Beer.
We thank you for your passionate interest in this fast growing culture and hope that you will join us by becoming a member of the guild. With your support, Mississippi’s craft brewing industry will continue to grow and make Mississippi better one pour at a time. Cheers!