Local brewers finding success as craft beer sales increase nationwide
Arbor Brewing Company bar manager Dave Clark with several sample sizes craft beers at the bar in downtown Ann Arbor.
Melanie Maxwell | AnnArbor.com
Eight years later, Jeffries is selling 12 times that amount in markets throughout the country and overseas. He’s also nearly tripled the Dexter brewery size and is eyeing yet another expansion.
The demand for his oak-aged sour craft beer, he said, now far exceeds the amount he can produce.
Head brewer for Corner Brewing Biil Gerds cleans cleans the floor after brewing a new batch of beer at Arbor Brewing Company.
Melanie Maxwell | AnnArbor.com
“I have more orders than I can fill right now,” Jeffries explained. “The demand is there, but we don’t have any more space.”
Nationally, craft beer sales continued to accelerate in 2011, with retail sales growing 15 percent and raking in $8.7 billion, according to statistics released last month by Colorado-based Brewers Association.
The industry has shown steady growth for years, accounting for 5.7 percent of total U.S. beer market volume in 2011, up from 4.9 percent in 2010.
At the same time, the overall beer market experienced a 1.3 percent volume decline last year and a 1.2 percent decline in 2010.
But for craft breweries — which produce less than 6 million barrels of beer a year and are defined as small, independent and traditional — the industry has never been more promising.
Rene Greff, who owns Ann Arbor’s Arbor Brewing Company and Ypsilanti’s Corner Brewery, said more people are choosing to drink exclusively craft beer for the quality and taste — something that helped her breweries sell a combined 4,200 barrels in Michigan in 2011.
She and her husband, Matt, also just got home from a trip to India where they plan to open the first international Arbor Brewing Co. location.
The Jolly Pumpkin cafe & brewery on South Main Street in downtown Ann Arbor.
AnnArbor.com file photo
The Greffs aren’t the only local brewers who expanded in 2011. Among other recent developments in the industry:
_ The Chelsea Alehouse signed a lease to open a brewery in the Clocktower Complex in downtown Chelsea.
_ The Jolly Pumpkin owners are moving forward with plans to open a location in Royal Oak.
_ Downtown Ann Arbor’s Blue Tractor restaurant and brewery recently doubled in size when it expanded into the neighboring Cafe Habana space on East Washington Street.
Jeffries said a combination of factors is causing people to buy craft beer, from a “support local” movement to health concerns. Above all, he said, “craft beer just tastes good.”
“This is not a trend and it’s not a fad,” he said. “It’s a lifestyle for people. Beer drinkers are selecting craft beer at their local restaurant, bars and stores.”
Greff said the industry has been able to grow, even during the economic downturn, because people simply won’t “downgrade” to cheaper beer. “Once you’re raised on full-flavored, all-natural beer, you don’t really go back to this sort of mass-produced beer,” she said.
And with 1,940 craft breweries open in the U.S. in 2011 and some 900 breweries in planning, Greff and Jeffries agree that there is still plenty of room for growth in the industry.
“As long as the market continues to expand at such a rapid rate, there’s going to be room,” Greff said. “We’d rather see all of Michigan craft brewers grow in the overall market, rather than try and steal business in the local industry.”
The only concern, Jeffries said, is that there are still a limited number of beer taps in bars and limited shelf space in retail stores.
“There’s some concern there, but if these breweries come online in a timely matter, it gives the market time to adapt,” he said. “Then more and more shelving can be devoted to craft beer, as long as the sales are there.”
Greff added: “Once we reach that saturation in the market with so many new places opening, competition will just force some of the weaker players out."
Lizzy Alfs is a business reporter for AnnArbor.com. Reach her at 734-623-2584 or email her at lizzyalfs@annarbor.com. Follow her on Twitter at http://twitter.com/lizzyalfs.
Comments
Atticus F.
Mon, Apr 16, 2012 : 9:13 p.m.
I'd like to share my experience with ABC (Arbor Brewing Co); I went in there to grab a quick lunch about 2 years ago, waited 20 minutes to have my order taken, waited another 20+ minutes for my food to arrive, and then upon discovering my burger was still raw in the middle (after ordering it well done). I then sat there for ten minutes with a raw, uneaten burger in front of me waiting for my waitress to ask if 'everything was ok'... 6 months later, I went there as a group with my co-workers and the service was so slow, that we ended up requesting our meals 'to go' because it took 50+ minutes to be served our food, and our lunch break was almost over before our food had even arrived.
Kara H
Mon, Apr 16, 2012 : 11 p.m.
I'm not wild about ABC's food (do like some of the beers though), but slow service has never been a problem in my experience. Luck of the draw, I guess.
Patti Smith
Mon, Apr 16, 2012 : 7:45 p.m.
Yay, craft beer brewers! These folks are awesome for many reasons, not the least of which is how they will try new things in their beers. Arbor/Corner frequently have new beers on tap and Wolverine has done amazing things with lagers. One of my favorite things about craft beer is how almost anyone can find something to like, even if you "only like wine" (i.e. try a sour or fruit beer). I also want to put in a shout out for OG in Milan & Liberty Street in Plymouth...try the lemon zest beer that is coming out soon at Liberty!
Bilbo
Mon, Apr 16, 2012 : 5:44 p.m.
Try these other Michigan Breweries/Beers Arcadia - Battle Creek (Angler's Ale) Bell's - Kalamazoo (Two Hearted) Founder's - Grand Rapids (Double Trouble) New Holland - Holland (Mad Hatter)
Chris
Mon, Apr 16, 2012 : 7:52 p.m.
I went out to Bells this past summer, and I felt they were slipping, or at least holding steady while others were passing them. I like Two Hearted as much as the next hophead, but there are plenty of others of similar caliber these days. And their other rotating taps were a bit ... watery.
Top Cat
Mon, Apr 16, 2012 : 6:46 p.m.
A fine list. I would add the following that are within an hour's drive: Liberty Street in Plymouth, Redwood Lodge in Flint, Detroit Brewing and Frankenmuth Brewing.
TX2AA
Mon, Apr 16, 2012 : 3:17 p.m.
Original Gravity down in Milan has some remarkable ones. Their porter can beat out some of the best, making it worth the trek down there.
Chris
Mon, Apr 16, 2012 : 7:51 p.m.
They have great sandwiches too.
MuckRaker
Mon, Apr 16, 2012 : 3:06 p.m.
The Chelsea Alehouse is set to open in late summer. I've tried some of Chris Martinson's beers and I can say that we (Chelsea residents, that is) are eagerly anticipating the opening of his new business. I also hope it will draw beer lovers out to Chelsea (we're only 20 minutes down the road). See you there!
Andrew R. Gorsuch
Mon, Apr 16, 2012 : 2:54 p.m.
It is great to have some world class breweries right in our backyard! Drink Local!
Ron Granger
Mon, Apr 16, 2012 : 1:01 p.m.
For years, investors have been looking to cash in on the microbrew trend. The funny thing is, a lot of folks think a microbrew is automatically worth $4 or $5 a pint (generally an underfilled pint). It isn't. I've had some truly awful microbrews - beers that should have been flushed quickly. While quality in general is up from where it was a few years ago, there are still a lot of so-so microbrews out there. Many aren't any better than what someone new to the craft can brew at home with minimal effort. Often, the batch to batch consistency is poor. A lot of these brewers try and cover their production issues with an excess of hops. The fact that a beer is brewed locally does not make me willing to spend big bucks for mediocrity. Most of them still can't equal an Ayinger, Spaten or Hacker Pschorr.
Hot Sam
Mon, Apr 16, 2012 : 8:22 p.m.
Stick with St Pauli Girl...brewed espressly for the "American Market'"
greg, too
Mon, Apr 16, 2012 : 6:23 p.m.
People like different types of beer, just like they like different cars, women, sports, etc.. I have wealthy friends who swear by coors light (we don't drink together often) and middle classers like me who like to drink local stuff only. But you are aware that you are comparing young, small craft breweries to century or centuries old multi national corporations? It's not an apples to apples comparison. After 6 centuries of brewing, I would hope Spaten was better than ABC or Bell's or anyone who might try and make a similar brew. And, also do not forget, breweries like Spaten and Hacker are being gobbled up by the monsters of the industry, inBev and others. Miller Coors is also going after the bigger national and international indies as well. I would imagine the quality that those brews were known for, which includes my beloved Goose Island, will begin to slip the as the giants meddle in the family business. As much as I get annoyed at the pricing of local brews (9.99 for a six that was brewed 150 miles away sucks), I will continue to buy local and keep a couple extra pounds off since I cannot afford too many of em.
leaguebus
Mon, Apr 16, 2012 : 4:27 p.m.
Micro's that sell beer that should not be sold, don't remain viable for long. I can remember Larry Bell flushing 200 gallons of one of his beers because it just did not taste good. He could have sold it, but he didn't. We can see where this attention to detail and taste has gotten Bells. Same goes with the rest of the Micro guys. Its a passion for beer that get them brewing and doing things they need to do to make good beer. Where is the passion with the brewers of Bud light or Miller light?
zeeba
Mon, Apr 16, 2012 : 3:44 p.m.
Interesting that the three brews you cite are all German styles, which are fairly uncommon in microbreweries. A big reason for this is that German brews are lagers, which are more challenging to produce on a small scale. The vast majority of small breweries focus on ales, which might be the reason for your dissatisfaction. Wolverine is an exception, and produces some ok lagers, but I can't say I'm crazy about them. The former Leopold Bros. used to focus exclusively on German-style lagers, but they were less than impressive.
a2miguy
Mon, Apr 16, 2012 : 3:32 p.m.
The thing is, ALL of them (even the stuff they call beer at ABC) are better than the mass-produced likes of Bud, Miller, and Coors.
MuckRaker
Mon, Apr 16, 2012 : 3:02 p.m.
Buy yourself some Bud and keep your grumpy self home. Pppppbbbbbbttttttttt!
sh1
Mon, Apr 16, 2012 : 1:47 p.m.
Bah, humbug!
Top Cat
Mon, Apr 16, 2012 : 1:43 p.m.
Get thee to Arbor Brewing for a Bavarian Bliss ! Your comments tell me that you having been going to the wrong beer joints.
CybeRolf
Mon, Apr 16, 2012 : 1:31 p.m.
Ron, you haven't tried enough Michigan craft beers, and you may be confusing your personal preference for lack of quality. I have tasted microbrews equal to your Bavarian standards. I don't go for sour beers, that doesn't mean that Jolly Pumpkin isn't a top-notch producer - witness the awards given by experts in blind competitions. I happen to like hops; if you don't, there are plenty of underhopped, cheap beers from which to choose.
fishjamaica
Mon, Apr 16, 2012 : 12:11 p.m.
i love beer.
CybeRolf
Mon, Apr 16, 2012 : 12:04 p.m.
Michigan craft beers are outstanding! Don't forget about the fine brews at Grizzly Peak, too.
sh1
Mon, Apr 16, 2012 : 11:23 a.m.
Don't forget Wolverine! Great beer, and the prices are lower than the downtown breweries.
Hot Sam
Mon, Apr 16, 2012 : 8:18 p.m.
Wolverine is a gem...I consider it my local bar...Olover is an extremely talented brewer...right now I'm about halfway through a dead Kettle IpA at Right Brain in Traverse City...
a2miguy
Mon, Apr 16, 2012 : 3:35 p.m.
Amen! annarbor.com is clearly biased towards Arbor Brewing/Corner Brewery. Personally, they are my least favorite brewery in the area. I absolutely love the brewing they are doing at Wolverine.
JGS
Mon, Apr 16, 2012 : 3:34 p.m.
Very true! Also Original Gravity in Milan. @Hot Same - Shorts is a great brewery - Love the Magician and the Bellaire Brown. Right now I'm loving the A2 Brewing new stout and Atwater's vanilla java porter.
Hot Sam
Mon, Apr 16, 2012 : 10:20 a.m.
It is great to see Michigan doing so well in the craft brew business...we are in he top tier in the nation for awards for our beers. Kudos to all. Today I am heading up north for a few days of work. I will certainly enjoy a trip to Right Brain, Jolly Pumpkin, and a glass of Stella Ale made by Shorts...It's all good!!!