BRD2013-2014 BREWERS RESOURCE DIRECTORY BENCHMARKING AND BESTPRACTICES SURVEY RESULTS REWERS ASSOCIATION MEMBERS-ONLY EXCLUSIVE CONTENT BREWERS ASSOCIATION MEMBERS-ONLY EXCLUSIVE CONTENT BREWERS ASSOCIATION MEMBERS-ONLY EXCLUSIVE CONTENT BREWERS ASSOCIATION MEMBERS The Brewers Association (BA) conducted a comprehensive survey of America s craft brewers to establish and share industry benchmarks and best practices. This survey was developed in response to BA member requests for hard data that they could use to measure their businesses and in turn make them more efficient and successful. 2012 survey questions were revised slightly from the 2010 edition; importantly, the 2012 survey now includes the BA salary survey as well. Results were compiled and aggregated by BA staff. The results provide a valuable set of tools specific to America s small and independent craft brewers. This section contains the highlights of the 2012 survey and newly a sampling of the BA salary survey results. Remaining data and more detailed in-depth salary information will be available in the Members-Only section of BrewersAssociation.org. Thank you to all who participated and may you find value in these results to help you grow with the industry. This is, indeed, an exciting time to be part of the craft beer community! Sincerely, Paul Gatza Brewers Association Kristi Switzer Brewers Publications Chris Swersey Technical Brewing Projects Coordinator 1
Key Anonymity Bonus The Brewers Association places great value on the anonymity of survey respondents. Many survey questions were of a highly sensitive nature. Not all respondents chose to answer all questions. The answers to questions with very low participation rates are shown with less detail (for example, not broken down by region, or not organized by company size), or may be shown on a per barrel basis (based on 2011 reported production) in order to protect the identity of the companies that answered these questions. The answer u/r ( unreported ), indicates an answer that is not provided in order to protect the anonymity of survey respondents. For purposes of this survey, Bonus includes all non-wage compensation such as bonus, profit sharing, commissions, tips, etc. Brewery Production Employees Brewpub Brewpub Sizes Full-Time Employee Max Mean Median Min Mode Non-Production, Sales and Marketing Employees Part-Time Employee Production Brewery Production Brewery Sizes For purposes of this survey, these are Brewmaster/Head Brewers, Shift Brewers, Cellarmen, QA/QC/Sensory, Lab and R&D employees. The Brewers Association defines a brewpub as follows: A restaurant-brewery that sells 25% or more of its companyowned production onsite. The beer is brewed primarily for sale in the restaurant and bar. The beer 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. Brewpubs were grouped based on their reported 2011 production figures in US Barrels. Groups were chosen in order to even out the number of responses within each size group. Many answers to survey questions are published on a per barrel basis, making identification of individual respondents impossible. Brewpubs with more than one location were given the option of answering questions in aggregate form, or based on average value per store values. Unless otherwise noted, survey answers are reported on a per store basis. For purposes of this survey, full-time employees are those working >30 hours per week or salaried. Full-time employee compensation reported as hourly wages was converted to a yearly figure by multiplying the reported hourly wage by 1,560 (52*30). The largest value among all responses The average value of survey responses to a given question. The total of all responses given, divided by the number of responses The middle response. An equal number of larger and smaller values were given as responses The smallest value among all responses The most common answer to a question For purposes of this survey, these are Owners/Proprietors, Professional Services (Accounting, Legal, Engineering, other), Administrative, Sustainability, HR, PR, other, Marketing/Advertising/Sales Managers or Staff, Material Ordering/Order Fulfillment/Warehouse/Logistics/Maintenance/All Others For purposes of this survey, full-time employees are those working <30 hours per week or salaried. Part-time employee compensation reported as hourly wages was converted to a yearly figure by multiplying the reported hourly wage by 780 (52*15). A production brewery, contract brewing company or alternating proprietorship that is not a brewpub. Production breweries were grouped based on their reported 2011 total production figures in US Barrels. Group volume breaks were chosen in order to roughly even out the number of responses within each size group. The largest category of production breweries (with 2011 production >50,000 US Barrels) contained the smallest number of responses. In order to maintain the confidentiality of individual respondents, answers within this group are often published as an entire group, with less detail than other groups. Many answers to survey questions are published on a per barrel basis, making identification of individual respondents impossible. All production brewery respondents entered their information in aggregate form. Respondents The survey included US craft brewers as defined by the Brewers Association. Datasets that did not include 2011 production data were removed. 288 total datasets were included in the analysis. 2
Restaurant Employees Salary/Hourly Wages For purposes of these survey, these are grouped as Chefs/Kitchen Managers (back-of-house), Wait Staff and Bar Managers (front-of-house), Cooks, Dishwashers, other (back-of-house), Wait Staff, Bar Staff, Bussers, Host-Greeters, other (front-ofhouse). For purposes of this survey, salary/hourly wages consists of base compensation paid to employees, not including bonus, profit sharing, comissions, tips, etc. Regions Midwest Mountain West Northeast Pacific Pacific NW South For the purposes of this survey, states were assigned to generally accepted definitions of regions, with a few exceptions that allowed for more even numbers of responses among the regions. Regions are usually tabulated alphabetically. Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin Arizona, Colorado, Nevada, New Mexico, Utah, Wyoming Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont, Virginia, Washington DC, West Virginia California, Hawaii Alaska, Idaho, Montana, Oregon, Washington Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas 3
Demographics of Survey Respondents 1. Brewpubs and Production Breweries by Region Region All Respondents Brewpubs Production Breweries Midwest 68 33 35 Mountain West 48 23 25 Northeast 45 20 25 Pacific 41 13 28 Pacific NW 50 15 35 South 35 10 25 All Regions 287 114 173 2. Brewpub Number of Respondents Per Type, Size and Region (As of July 2012) by number Brewpub Volume All Regions Midwest Mountain West Northeast Pacific Pacific NW South 1-500 bbl 23 7 4 3 1 6 2 501-1000 bbl 49 17 9 8 7 3 5 >1000 bbl 42 9 10 9 5 6 3 Total 114 33 23 20 13 15 10 3. Production Brewery Number of Respondents Per Type, Size and Region (As of July 2012) by number Production Brewery Volume All Regions Midwest Mountain West Northeast Pacific Pacific NW South 1-1000 bbl 54 12 8 8 9 13 4 1001-7500 bbl 58 10 8 7 6 14 13 7501-50,000 bbl 48 10 8 8 10 4 8 >50,000 bbl 13 3 1 2 3 4 0 Total 173 35 25 25 28 35 25 4. Brewpub Number of Respondents Per Type, Size and Region (As of July 2012) by percentage Brewpub Volume % of Brewpub Respondents % of All Respondents Midwest % Mountain West % Northeast % Pacific % Pacific NW % South % 1-500 bbl 20% 8% 21% 17% 15% 8% 40% 20% 501-1000 bbl 43% 17% 52% 39% 40% 54% 20% 50% >1000 bbl 37% 15% 27% 43% 45% 38% 40% 30% Total 100% 40% 100% 100% 100% 100% 100% 100% 4
5. Production Brewery Number of Respondents Per Type, Size and Region (As of July 2012) by percentage Production Brewery Volume % of Production Breweries Respondents % of All Respondents Midwest % Mountain West % Northeast % Pacific % Pacific NW % South % 1-1000 bbl 31% 19% 34% 32% 32% 32% 37% 16% 1001-7500 bbl 34% 20% 29% 32% 28% 21% 40% 52% 7501-50,000 bbl 28% 17% 29% 32% 32% 36% 11% 32% >50,000 bbl 8% 5% 9% 4% 8% 11% 11% 0% Total 100% 60% 100% 100% 100% 100% 100% 100% 6. Average Production Volume: a. Average Production Volume: All Brewpubs and Production Breweries All Brewpubs (per store volume) 2011 2009 % change 1-500 bbl 233 267-13% 501-1000 bbl 608 704-14% >1000 bbl 1202 1226-2% Brewing Companies 1-1000 bbl 437 411 6% 1001-7500 bbl 3034 2794 9% 7501-50,000 bbl 20723 18754 10% >50,000 bbl 227823 185208 23% Notes: Number of stores was calculated differently in this survey compared to the last survey. b. Average Production Volume: Single Store Brewpubs Only Single Store Brewpubs Only 2011 2009 % change 1-500 bbl 339 267 27% 501-1000 bbl 805 757 6% >1000 bbl 1801 2185-18% 5
7. Average Brewpub Production By Region (US BBL on a per store basis) Region 2009 2010 2011 2012 (projected) Midwest 438 526 611 884 Mountain West 903 978 1128 1700 Northeast 833 919 1069 1283 Pacific 836 888 971 1097 Pacific NW 580 765 1043 1388 South 505 569 692 727 All Regions 658 749 883 1176 8. Average Brewpub Production By Region (% Change in US BBL on a per store basis) Region 2011 (Actual) vs. 2010 One Year Trend 2011 (Actual) vs. 2009 Two Year Trend 2011 One Year Trend 2010 Two Year Trend 2009 Three Year Trend Midwest 16% 39% 45% 68% 102% Mountain West 15% 25% 51% 74% 88% Northeast 16% 28% 20% 40% 54% Pacific 9% 16% 13% 24% 31% Pacific NW 36% 80% 33% 81% 139% South 22% 37% 5% 28% 44% All Regions 18% 34% 33% 57% 79% 9. Average Brewing Company Production By Region (US BBL) Region 2009 2010 2011 2012 (projected) Midwest 7533 9321 19434 24907 Mountain West 38869 44652 50814 60822 Northeast 20407 25926 32371 36605 Pacific 45180 49953 56466 65844 Pacific NW 18793 20309 23916 28500 South 4137 5932 8816 12395 All Regions 21697 24921 31015 37158 6
10. Average Brewing Company Production By Region (% Change in US BBL) Region 2011 (Actual) vs. 2010 One Year Trend 2011 (Actual) vs. 2009 Two Year Trend 2011 One Year Trend 2010 Two Year Trend 2009 Three Year Trend Midwest 109% 158% 28% 167% 231% Mountain West 14% 31% 20% 36% 56% Northeast 25% 59% 13% 41% 79% Pacific 13% 25% 17% 32% 46% Pacific NW 18% 27% 19% 40% 52% South 49% 113% 41% 109% 200% All Regions 24% 43% 20% 49% 71% Brewers Publications A Division of the Brewers Association www.brewersassociation.org 7