In The Shadow Of Repeal Day, Brewers Association Announces Record Number Of Breweries

In 1873 there were 4,131 breweries operating in the United State, a record high. By 1920, that number had started to shrink and then drastically declined when Prohibition was enacted. In 1934, one year after the ratification of the 21st Amendment, 756 breweries were operational. Despite infrequent declines, beer has remained a national staple and now, 81 years later, the Brewers Association has announced a new record number of operating breweries: 4,144.

The Brewers Association made the announcement as part of their year-end review. It’s hard to say it’s a surprise the record has been broken, but I don’t think most expected it so soon. By 2020, the Brewers Association has projected craft beer representing 20 percent of the US beer production – 11 percent at the end of 2014. Yet, you have to imagine that number will be higher, barring any unforeseen issues.

While craft breweries continue to pop up throughout the country – at a rate of two or more a day – the macro breweries are joining forces to bolster their share of the production. In just the past seven years we’ve seen Anheuser-Busch sell to InBev (2008) and SABMiller sell to the newly created Anheuser-Busch InBev (2015).

Bart Watson, chief economist for the Brewers Association noted that thousands of towns in America are currently without a brewery and only 15 states boast 100 or more breweries. All that means there is plenty of growth potential still in the craft brewing industry.