Breweries

The US brewery industry includes about 1,400 breweries with combined annual revenue of about $18 billion. Major companies include the US operations of Belgium-based Anheuser-Busch InBev and MillerCoors, a joint venture between UK-based SABMiller and Molson Coors. The industry is highly concentrated: the top two breweries account for 90 percent of revenue, and the top 50 for 98 percent. Most breweries are small, with a single location and fewer than five employees.

COMPETITIVE LANDSCAPE

The major driver of demand is consumer leisure activity. The profitability of individual companies depends on marketing, distribution, and operational efficiency. Large companies have advantages in marketing and sales, production economies of scale, and influence with distributors. Small companies can compete effectively by developing specialty products and serving a local or regional market. Average annual revenue per worker is $625,000, but is typically around $140,000 in small companies.

Competition among beers is with national, regional, and local brands, and imported brews. Competition also comes from other alcoholic beverages, especially lower-priced wine, and from non-alcoholic drinks.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major brewery products are malt beverages, primarily beer and ale, packaged in cans, bottles, barrels (31 US gallons), or kegs (half-barrels). Canned beer and ale case goods account for about 50 percent of industry revenue; bottled beer and ale case goods, for about 40 percent; and beer and ale in barrels and kegs, for 6 percent. Additional products include other malt beverages, such as ...