American brewers shipped 14,413,000 barrels, a decrease of 4.6% versus July 2016 removals of 15,101,000, Beer Institute estimated. So far this year, U.S. brewers have shipped 101,297,000 barrels, down 2% from the like year-earlier level of 103,323,967 barrels.
In the past, beer advocates have pointed to the growth of craft beer as explaining the decline in shipments. With more people “drinking better,” the argument went, they were spending more but buying less.
That argument is less valid today. Retail-store sales of all craft beers fell $143 million to $2.3 billion in the first half of 2017, Nielsen said, following a decline in 2016. Indeed, for the first time since its founding in 1980, Sierra Nevada Brewing, the No. 2 U.S. craft brewer by volume, reported a decline – a 6.9% drop.
While some say craft brewing is running into increased competition, we’d suggest that doesn’t explain the drop in volume for beer as a whole.
The bigger problem probably is changing consumer tastes. A growing number of drinkers are turning to spirits and wine. And, people increasingly are looking for personal connections. Craft brewers who keep production under 100,000 barrels are seeing flourishing sales.