Photo by Joe LananeNew state laws, city regulations to help industry during growth
Craft brewers are riding a wave of momentum to start 2014 because of strong sales and new state laws that enable business expansions.
While exact 2013 sales figures are not yet available, there was an anticipated 15 percent statewide increase in barrels of beer sold year over year, said Charles Vallhonrat, executive director of the Texas Craft Brewers Guild. That follows a 42 percent sales spike from 2011 to 2012, he said.
Even more encouraging, Vallhonrat said, is the anticipated expansion of several statewide operations because of new state laws that make it easier for craft brewers to sell on-site and for brewpubs to distribute their products to the retail market.
"It's hard to imagine continuing that kind of growth rate, but those [2012] numbers were achieved prior to the legislative changes," said Vallhonrat, who said he has seen guild membership grow 90 percent since becoming executive director little more than one year ago.
East Austin brewery Hops & Grain Brewery more than doubled production in 2013 compared with its first year in business, owner Josh Hare said, a growth rate he expects to continue this year. The brewery hopes to sell beer on-site starting in February when Hare anticipates the city will revise its zoning language to allow such distribution.
"Right now we're trying to drive traffic here because shy of a pint night, there aren't many other chances to get out in front of our customers," said Hare, who opened a new 2,000-square-foot tap room late last year in an effort to attract more brewery visitors.
Austin Beer Garden Brewing Co. also ended 2013 on a high note, having bought two additional fermenters to end the year. That increases capacity at the brewpub by 50 percent, co-founder Amos Lowe said. ABGB may have to purchase more fermenters in early 2014, he said, to keep up with demand.
In addition, Lowe said the South Austin brewpub may begin canning beer for distribution starting in mid- to late 2014. Initial entry into the retail market will be small and selective, he said.
"It's a really big deal for us," Lowe said. "It's an entire revenue stream that we weren't allowed to access before."
Both Lowe and Hare say their businesses have plenty of room to grow into their existing sites rather than relocate any time soon. Even as competition increases, they agreed there is plenty of room in the Austin market because of the modified state laws.
"It's definitely more competitive, but me and [Hare] have the same goal," Lowe said. "He just came from the production side, and I came from brewpubs. We're going to the same place just from opposite directions."
Vallhonrat said Hops & Grain and ABGB are just two examples in Austin and statewide of brewpubs and breweries expanding. He expects full 2013 sales reports to be available by March or April.
