Beer 101

Craft beer industry market segments

There are five distinct craft beer industry market segments: microbreweries, brewpub, taproom brewery, regional breweries, and contract brewing companies. Craft brewers are small brewers. The hallmark of craft beer and craft brewers is innovation. Craft brewers interpret historic styles with unique twists and develop new styles that have no precedent. Craft beer is generally made with traditional ingredients like malted barley; interesting and sometimes non-traditional ingredients are often added for distinctiveness. Craft brewers tend to be very involved in their communities through philanthropy, product donations, volunteerism, and sponsorship of events. Craft brewers are distinctive, individualistic approaches to connecting with their customers. Craft brewers maintain the integrity by what they brew and their general independence, free from a substantial interest by a non-craft brewer.

Taproom Brewery

A professional brewery that sells 25 percent or more of its beer on-site and does not operate significant food services. The beer is brewed primarily for sale in the taproom and is often dispensed directly from the brewery’s storage tanks. Where allowed by law, taproom breweries often sell beer to-go and/or distribute to off-site accounts.

Microbrewery

A brewery that produces less than 15,000 barrels (17,600 hectoliters) of beer per year with 75 percent or more of its beer sold off-site. Microbreweries sell to the public by one or more of the following methods: the traditional three-tier system (brewer to wholesaler to retailer to consumer); the two-tier system (brewer acting as a wholesaler to retailer to consumer); and directly to the consumer through carry-outs and/or on-site taproom or restaurant sales.

Brewpub

A restaurant-brewery that sells 25 percent or more of its beer on-site and operates significant food services. The beer is brewed primarily for sale in the restaurant and bar and is often dispensed directly from the brewery’s storage tanks. Where allowed by law, brewpubs often sell beer to-go and/or distribute to off-site accounts.

Regional Brewery

A brewery with an annual beer production of between 15,000 and 6,000,000 barrels.

Contract brewing company

A business that hires another brewery to produce its beer. It can also be a brewery that hires another brewery to produce additional beer. The contract brewing company handles marketing, sales, and distribution of its beer, while generally leaving the brewing and packaging to its producer-brewery (which is also sometimes referred to as a contract brewery).

Regional craft brewery