The Craft Beverage Industry The Leverage of Beverage

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1 The Craft Beverage Industry The Leverage of Beverage

2 ARC Why Do We Do What We Do?

3 Who We Are Land of Sky Regional Council is a multi-county, local government planning & development organization. We reach across county & municipal borders providing technical assistance to local governments & administer projects & programs which benefit our region s citizens.

4 Some of Our Services Economic & Community Development Area Agency on Aging/Volunteer Services Mountain Area Workforce Development Transportation Planning Mountain Mobility GIS/Data Management Transportation Resource Center Waste Reduction Partners

5 Our Mission Our mission is to provide creative regional solutions to relevant & emerging issues in Buncombe, Henderson, Madison, & Transylvania counties while providing a standard of excellence in the delivery of federal, state, & regional services for our member communities.

6

7 Background Historically, Western North Carolina is no stranger to the production and distribution (and consumption!) of craft beverages. Early Scots-Irish, German and other European settlers brought well refined fermenting, brewing and distilling skills from the Old World.

8 Background Most locals trace the modern Western North Carolina craft beverage industry to 1994 when Highland Brewing Company opened at the first legal brewery in the region since prohibition.

9 Background 1774 Single Brother s Brewery & Distillery Opens in Salem 1908 NC becomes first southern state to enact statewide prohibition of alcoholic beverages th Amendment goes into effect 1933 NC votes against ratification of 21 st Amendment st Amendment repeals 18 th Amendment, prohibition ends 1935 Two years after federal repeal NC repeals prohibition

10 Background 1936 NC Beer & Wine Wholesalers Association is formed 1937 State ABC Commission is formed 1970 Stroh Brewing opens brewery in Winston-Salem 1978 Miller Brewing opens brewery in Eden 1983 Legal drinking age in NC raised from 18 to Action by the NC General Assembly makes brewpubs legal in NC 1986 Weeping Radish in Manteo becomes NC s first brewpub

11 Background 1993 Smoky Mountain Brewing Company opens in Waynesville 1994 Highland Brewing brews first batch in Asheville 1997 Jack of the Wood (Green Man) opens in Asheville 1998 Two Moons Brew-n-View opens in Asheville as movie theater and brewpub 1999 Two Moons changes name to Asheville Pizza & Brewing 2000 French Broad Brewery opens in Asheville

12 Background 2005 Pisgah Brewing begins production in Black Mountain 2005 NC General Assembly approves 15% cap 2006 Highland Brewing opens new brewery in East Asheville 2008 Wedge Brewing Company opens in Asheville 2009 OysterHouse Brewing Company begins brewing operations 2009 Asheville ties with Portland, OR for Beer City USA

13 Background 2010 Lexington Avenue Brewery opens 2010 Asheville wins outright title of Beer City USA 2011 Asheville named Beer City USA, again 2012 Wicked Weed Brewing Company opens 2012 Thirsty Monk Pub & Brewery begins brewing own beer 2012 Catawba Brewing opens Asheville location 2012 Oskar Blues opens east coast brewery in Brevard

14 Background 2013 Twin Leaf Brewing opens 2013 High-Wire Brewing opens 2013 Burial Beer Company opens 2013 Sierra Nevada opens east cost brewery in Mills River 2014 One World Brewing opens 2016 New Belgium begins operation at east cost brewery in Asheville s River Arts District

15 The Numbers According to the Brewers Association, in 2014 craft beer represented less than 11% of the beer market in volume and 19% of total sales. However, market growth is projected to grow at a compounded annual rate of 35% by 2019.

16 The Numbers Between 2012 & 2014, 22% of Asheville s visitors specifically sought out alcohol-related tourism. Buncombe County alone hosted about 3.3 million overnight guests in million people visited, but didn t stay overnight.

17 The Numbers Oskar Blues estimates 500,000 visitors annually. Wicked Weed also estimated 500,000 visitors per year. In 2015, 75,000 people toured Sierra Nevada s facility in Mills River. High-Wire welcomes at least 90,000 guests each year.

18 Grand Rapids, MI Spending Per Beer Tourism Visit: Craft Beer - $46.46 per person; $ by party Lodging - $73.99 per person; $ by party Food - $54.14 per person; $ by party Transportation - $12.06 per person; $61.41 by party Retail - $7.40 per person; $37.67 by party Entertainment - $1.96 per person; $10.00 by party Total - $ per person; $ by party

19 The So What? Question It s All About Asset-Based Economic Development

20 Questions? Justin Hembree

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