2022 CRAFT BREWING GROWTH TRENDS - LEARN FROM THE 76% OF CRAFT BREWERIES WHO ARE PROJECTING GROWTH IN 2022
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2022 CRAFT BREWING GROWTH TRENDS LEARN FROM THE 76% OF CRAFT BREWERIES WHO ARE PROJECTING GROWTH IN 2022 2022 Craft Brewing Growth Trends 1
2022 CRAFT BREWING GROWTH TRENDS KEY FINDINGS
2020 turned the hospitality world upside down, and
subsequent years have proven to be a difficult recovery for
businesses everywhere. As a member of the craft brewing
industry, you may be wondering where your business falls
among others nationwide.
Here’s some exciting news: 76% of breweries expect sales
growth in 2022. So where are these flourishing businesses
investing this coming year?
1. ON-PREMISE SALES: Taprooms sales are the most
profitable channel for 84% of breweries
2. DISTRIBUTION: As annual revenue for breweries
grows, so does the likelihood of using a distributor
3. OPERATIONS: 2022 is the year of identifying
efficiencies with 73% of breweries expanding their
tech stack
Craft is all about community and collaboration, and the
industry is growing! Keep reading to learn from breweries
just like yours and from those you aspire to be.
2022 Craft Brewing Growth Trends 2
TABLE OF CONTENTS
Survey Demographics & Brewery Information.............................................................................................. 4
Brewery Growth is on the Horizon..................................................................................................................... 7
Trending Investment #1: On-Premise Beverage Sales...............................................................................15
• Case Study: Cultural Center First, Brewery Second....................................................................21
• Staffing the Taproom............................................................................................................................. 27
Trending Investment #2: Distribution.............................................................................................................29
• Case Study: Getting Crafty with Distribution............................................................................... 33
Trending Investment #3: Operations...............................................................................................................36
• Case Study: Blending Service & Technology................................................................................40
Wrap Up & Highlights.......................................................................................................................................... 44
2022 Craft Brewing Growth Trends 3
Survey Demographics & Brewery Information
GET TO KNOW THE
BREWING BUSINESSES
SURVEYED:
BREWERIES, BREWPUBS,
AND BREWERIES IN
PLANNING.
2022 Craft Brewing Growth Trends 4
TRUSTWORTHY DATA YOUR BREWERY CAN RELATE TO The brewing landscape has gone through a pandemic- You’ll see that a majority of those surveyed own or are induced evolution, and things will continue to change as employed by smaller-scale breweries, increasing the breweries head into an uncertain future. But this much is likelihood that these businesses are either just like yours, or certain: breweries are choosing to lean in, adapt, and wow as businesses you look up to. This also eliminates the possibility they prove resilience time and time again. of brewing giants (rhymes with Smierra) skewing the data. In this report, you’ll see that industry data proves there is So rest assured you’re in good company! Hopefully you’ll indeed a light at the end of this COVID tunnel. Breweries see your own brewery reflected in this point of view, and get are witnessing business growth, anticipating even more answers to questions you have moving forward into 2022. to come, and flexing with the times to ensure exceptional guest experiences and product offerings. As craft beer’s most trusted POS system, Arryved’s network of breweries nationwide provides us with a holistic understanding of this year’s trends. We surveyed both our customers and others in a variety of business stages— from establishments just getting started to seasoned brewing vets. 2022 Craft Brewing Growth Trends 5
DEMOGRAPHIC INFORMATION OF SURVEYEES
Today’s craft leaders were the primary subjects of this Trends report. They’ve seen success, they’re hungry thirsty
for more, and they’re open to experimentation. Keep reading to see what’s in the experiment queue for 2022!
ANNUAL REVENUE JOB ROLE GOALS
$5M+ 59%
2% Neighborhood Brewery
59% 28% 45%
Owner Manager
Multiple Taprooms
$1M-$5M 39%
37%
6% Distribute Regionally
FOH Staff
12%
Brewery Growth is on the Horizon
76% OF BREWERIES
PROJECT SALES
GROWTH IN 2022
2022 Craft Brewing Growth Trends 7
Is it finally time
breweries shed their COVID skin?
A whopping 62% reported sales
growth in 2021, and 76% expect even
better growth in 2022!
2022 Craft Brewing Growth Trends 8
GROWTH IS IN THE BREWING CRYSTAL BALL First thing’s first: Holy Hefeweizen! Growth is growth, but these positive numbers are staggering in size. Now, let’s talk nitty gritties: Of the breweries reporting 2021 growth, 59% of them saw an 11-40% increase in revenue. This increase is spectacular news, especially coming off these past couple of years of neverending pandemic-induced barriers. But while thirsty fans are staying loyal prioritizing community, supply chain issues and other factors continue to affect all aspects of business. Equipment, ingredients, and staff are a few of the things in short supply. Because of this, it’s no surprise that 73% of breweries plan to raise menu and product prices in 2022. Whether there’s a consumer response to higher prices? That’s for next year’s trends to tell us. 73% of breweries plan to raise menu and product prices in 2022 2022 Craft Brewing Growth Trends 9
WHAT ARE YOUR BUSINESS GROWTH GOALS?
A goal of most brewing businesses is to become a neighborhood Friday night favorite. And who can blame them?! Breweries
are also focused on spreading their wings and casting a wider net of customers via additional locations and distribution.
Neighborhood
Brewery
Multiple Taprooms
Distribute
Regionally
Distribute
Nationally
Distribute
Internationally
0% 20% 40% 60%
2022 Craft Brewing Growth Trends 10WHAT IS THE MOST IMPORTANT GROWTH CHANNEL
FOR YOUR BUSINESS?
Frankly, everyone could use a hug and a beer after these past couple of years. As we inch closer to pre-pandemic normals,
online ordering is taking a backseat, and enhancing guest experiences in the taproom is top of mind for breweries.
On Premise Sales
Distribution: Bars & Taprooms
On Premise
Distribution: Retail
Sales
Online: Shipping
Online: Pickup
Online: Delivery
Distribution
Online
Ordering
0% 20% 40% 60% 80%
Along with great beer, community is brewed in the
taproom! People gravitate towards places they can
comfortably gather with friends, family, & neighbors.
2022 Craft Brewing Growth Trends 11WHICH IS YOUR MOST
PROFITABLE CHANNEL? All, or close to equal
3.5%
As far as money-making, taproom sales are where
Distribution
brewing businesses are most profitable, proving
12.7%
that fresh pints and good vibes are a priority for
beer drinkers.
Taproom
83.8%
What channel is sorely lacking in profitability?
Ecommerce got 0 responses here.
2022 Craft Brewing Growth Trends 12ARE YOU PLANNING TO RAISE PRICES ON YOUR MENUS
AND PRODUCTS IN 2022?
COVID was the first domino to fall in a couple really tumultuous years for the brewing world. The effects of climate change,
wildfires, and supply chain issues continue to throw curveballs at the industry today. In response, many craft folk are raising
prices in 2022.
Raised in 2021 Have not raised in a year
Yes
No
0% 20% 40% 60% 80%
If you’re not planning to raise prices, why not?
“Not sure the “Expanding so should be
market will bear it.” producing in larger batches
more profitably.”
2022 Craft Brewing Growth Trends 13ARE YOU WORRIED ABOUT FUTURE POTENTIAL COVID RESTRICTIONS IMPACTING YOUR BUSINESS? Vaccines and boosters abound, it’s still not the time to go lickin’ fingers after a brewery bite. A resounding percentage of breweries reported they are indeed concerned about the future of the pandemic and how it will affect their business. No 28.5% Yes 71.5% 2022 Craft Brewing Growth Trends 14
Trending Investment #1: On-Premise Beverage Sales
TAPROOMS SALES ARE
THE MOST PROFITABLE
CHANNEL FOR 84%
OF BREWERIES
2022 Craft Brewing Growth Trends 15How do breweries further
grow this profitable channel?
Focus on generating genuine staff-
guest interactions and new ways to
engage the community.
2022 Craft Brewing Growth Trends 16THE HUMAN TOUCH HAS
STILL GOT IT
In the new normal made up of Zoom dates and grocery
shopping on Amazon, it’s a bit of a shock that a
majority of taprooms are continuing to make the most
dough in-person.
That said, it’s great news! This means thirsty people
are still supporting local spots and going out to imbibe.
After all, if these past few years taught us anything, it’s
that there’s nothing quite like the company of friends,
family, and a local community.
And although distribution wasn’t reported as the most
profitable channel, it’s still on the 2022 investment
roadmap for most breweries. Understandably so—
distributing to new areas is a great strategy for enticing
newcomers to your taproom!
38% of breweries plan
to experiment with
taproom engagement
2022 Craft Brewing Growth Trends 17HOW DO YOU SELL YOUR BEER?
In addition to on-premise sales in their taproom, breweries utilize distribution and ecommerce to get their goods into craft
drinkers hands (er, mouths).
Taproom
Distribution
Ecommerce: Your
Website
Ecommerce: Third
Party (ex: Drizly)
0% 25% 50% 75% 100%
2022 Craft Brewing Growth Trends 18WHAT IS SOMETHING NEW YOUR TEAM
IS LOOKING TO TRY TO INCREASE SALES IN 2022?
How to increase your bottom line is always on the brain. Outside the taproom initiatives:
Surveyees have plans to increase sales both inside and • 21% will increase distribution both locally and
outside of the taproom in the coming year. nationally ➞ “larger canning runs to self distribute
Inside the taproom initiatives: locally”, “distribution to retail”
• 38% will experiment with taproom engagement ➞ “QR • 9% will enhance marketing and branding efforts ➞
code menus and ordering”, “special events centered “increased brand recognition”, “online presence”, “new
around charitable giving” marketing team”
• 10% plan to expand the taproom ➞ “Add bars, enhance • 4% will set up online storefronts ➞ “move merch online”,
outdoor space”, “second location, third location” “adding ecommerce”
• 9% are looking to launch new product lines ➞ “hard
seltzers”, “specialty coffee”, “slushies”, “collaboration
beers”
2022 Craft Brewing Growth Trends 19EXPERIMENTING IN THE TAPROOM
1. CHANGING UP SERVICE 2. EVENTS
• Table service on weekends • Weekly theme nights (catered
• Large group reservable to locals)
experiences with food and bev • Special events centered
• More splashes of beer to around charitable giving
invite more beer sales • Entertainment options
• Food and beer pairings • Longer hours, more events
• Contest for staff selling products • Block parties with other local vendors
• Space rental • Bring back onsite events and classes
• Stepping away from sports bar • Events and charitable donations
atmosphere and focusing more on • Bigger taproom events
beer atmosphere
• New event team
• QR Code menus and ordering
• Community events
3. REVAMPING 5. FASTER TICKET TIMES, 6. CONTACTLESS ORDERING
LOYALTY PROGRAM 4. INCREASE PRICES FASTER LINES, TO-GO & ZONE PICK-UP
PICKUP WINDOW
2022 Craft Brewing Growth Trends 20CULTURAL
CENTER FIRST,
BREWERY
SECOND
Raíces Brewing Company in Denver, CO was created that’s why we are a community center, a cultural center, and
to celebrate Latin culture and educate people through food, a resource center. Not only a brewery.
music, dance, art, discussions, and of course, cervezas. When -Tamil Maldonado Vega, VP of Development at Raíces
Raíces owners realized how underrepresented Latinos were
When you’re running that large of a programming initiative,
in business ownership, they committed to regularly inviting
you need robust reporting tools to determine which events
food trucks, artists, performers, artisans, and more to use
are profitable. Being able to easily analyze sales trends
their space and amplify Latinx voices and products.
lets you ensure the events you’re hosting are worthwhile,
We say it’s Raíces Cervecería because the way that we can and when to host the next event in order to compensate for
make money to sustain ourselves is through a quality product: slower sales periods.
beer. At the same time, we are supporting so much more and
2022 Craft Brewing Growth Trends 21WHAT IS SOMETHING YOUR TEAM IS GOING TO STOP
DOING IN 2021, BECAUSE IT’S NOT INCREASING SALES?
Learning what your brewery should stop doing is just as 11% of breweries are reassessing product offerings. Some
valuable as learning new paths to take. Moving into 2022, examples of products on the nix list:
breweries are trimming the costly, ineffective fat! • Growler sales
In general, breweries are choosing to be more particular with • Cans and bottles for in-house consumption
the types of programming they host:
• High ABV beers
• 13% are cutting live music nights ➞ “Booking expensive
bands does not increase # of customers”
• 8% will cut events that aren’t statistically driving sales
➞ “Externally sourced gimmick nights like trivia and bingo”
• 7% are nixing promotion-forward events ➞ “Hosting
mug club events”, “Pint nights”, & “To-go taproom
promotions”
2022 Craft Brewing Growth Trends 22You’re in the business of beer,
of course, but also customer service. Your
staff are expert multi-taskers, gracious hosts,
and product specialists, so picking service
models that play to their strengths is key!
2022 Craft Brewing Growth Trends 23DID SERVICE MODEL USE PLAY A PART IN 2021 GROWTH?
It appears that service model type, and therefore the level of guest engagement, didn’t have a strong correlation with 2021
revenue growth. But, of course, breweries still want to ensure optimal customer experiences so they generate good times and
repeat business. Because table service has high guest engagement and counter service is low cost to staff, many breweries
are combining service models to reap the benefits of both.
Saw Growth No Growth
Counter Service
Table Service
A blend of both always
A blend of both depending
on the day/time
0% 25% 50% 75% 100%
What do you get when you combine both service
models with QR code technology? A service-forward
experience that maximizes guest satisfaction and
ordering efficiency.
2022 Craft Brewing Growth Trends 24DO YOU DO SPECIAL BEER RELEASES?
Nothing gets craft heads in a taproom quicker than a special release. Whether it’s once a year or once a month, most
breweries reported releasing special brews.
No
12.1%
Yes
87.9%
2022 Craft Brewing Growth Trends 25DOES YOUR TAPROOM OFFER FOOD?
Offering food options is a great way to keep guests in the taproom for longer. If you’re on the fence, inviting local food
trucks to your parking lot is a perfect option for having food available nearby, but not making it yourself!
Will in the future
11.6%
Yes
45.1%
No
43.4%
2022 Craft Brewing Growth Trends 26HAS YOUR CRAFT BREWERY BEEN AFFECTED BY THE
LABOR SHORTAGE?
The nationwide labor shortage is another hurdle hospitality has had to overcome recently, but surprisingly, the majority of
breweries surveyed did not report being affected. Most answered no effects of the labor shortage, meaning craft businesses
either have a loyal employee base, or they’re depending on technological efficiencies.
Yes
38.8%
No
61.2%
2022 Craft Brewing Growth Trends 27DO SERVICE MODELS IMPACT WHETHER OR
NOT A BREWERY HAS BEEN AFFECTED BY THE
LABOR SHORTAGE?
Because counter service inherently requires less staff-guest interactions, it makes sense that breweries using that service
model type would see less effects from the labor shortage.
Counter Service Table Service Blended Service
Yes
No
0% 25% 50% 75% 100%
2022 Craft Brewing Growth Trends 28Trending Investment #2: Distribution
AS ANNUAL REVENUE
FOR BREWERIES
GROWS, SO DOES THE
LIKELIHOOD OF USING
A DISTRIBUTOR.
2022 Craft Brewing Growth Trends 2921% of breweries
plan to increase distribution
efforts in 2022
2022 Craft Brewing Growth Trends 30MORE CANS, MORE BRAND AWARENESS
How to get more cans in front of more people is top of mind In addition to selling merchandise and hosting events,
for breweries this year. Distribution may not be the most distribution is yet another way that breweries can diversify
profitable channel, but breweries are dabbling both locally revenue streams.
and nationally in an effort to grow brand awareness and, That said, it’s not easy to break into the distribution channel.
eventually, annual revenue. The processes of fulfillment and selling require a lot of
While there is simply nothing like a buzzing taproom, there planning, preparation, and resources, so it’s no surprise that
are disadvantages to having your main revenue source come higher-revenue breweries are outsourcing to third parties.
from taproom-only sales:
1. Capacity: Your space, especially on the tails of
a pandemic, has a limit to how many people can
comfortably enjoy pours in it.
2. Geography: You’re only serving those in your taproom’s
neighborhood, and the occasional tourists. Think of
how many more people you could reach via distribution!
3. Hours: Your taproom is only open certain times of day.
If someone has a hankering for your delicious Sour Ale,
they must wait until you’re open for business!
Breweries are diversifying revenue
streams through distribution.
2022 Craft Brewing Growth Trends 31IF YOU DISTRIBUTE, DO
YOU USE A DISTRIBUTOR?
Distributing breweries lean towards the use of a third
No
party, but self-distribution makes up a significant chunk.
28.5%
Because distributors take a cut of profits, it makes sense
that taproom sales beat out distribution by over 2x as
the most profitable channel. To the 21% with their sights
set on distribution this year: It’s worthwhile to do your
research on the options available to you!
Yes
71.5%
57% of alcohol retailers said they expect to
devote more shelf space to craft beer in 2022
2022 Craft Brewing Growth Trends 32GETTING CRAFTY WITH DISTRIBUTION Lady Justice Brewery in Aurora, CO is one of the few “We had to learn how to do it on a slightly larger scale. We were all female run, queer, and latina owned breweries in the learning about distribution: doing it quickly, well, and safely.” country. The founders set out on a mission to build a brewery -Betsy Lay, Cofounder, Owner, & Head Brewer that served its community, starting with distribution via a After 6 years of membership distribution, 2 years of steady membership model because they didn’t have a taproom taproom sales, and a whole lot of preparation, Lady Justice space. Dues were paid up front, giving the owners enough now has their own canning line and 6-packs ready to ship money to brew and operate for 6 months at a time, knowing across state lines! the exact amount of beer to make. After brewing costs and rent, the rest of profits went right out the door to nonprofits. 2022 Craft Brewing Growth Trends 33
HOW DOES ANNUAL REVENUE AFFECT THE USE OF
A DISTRIBUTOR?
As annual revenue among breweries increased, so did the use of a distributor. Self-distribution requires a canning line and
a lot of elbow grease, but making brews available to more people may just be the ticket to increasing annual revenue and
eventually getting a third party to do that work for you.
Self Distribute Use a DistributorDO MARKETING BUDGETS DICTATE PROFITABILITY
BY SALES CHANNEL?
While taproom sales prove profitable regardless of marketing budget size, higher marketing spend appears to give
breweries the opportunity to optimize their distribution channels. We can assume those marketing dollars are raking in
brand awareness, which is making beer fly off retail shelves!
Distribution Taproom
0-$100
$101-$1,000
$1,001-$10,000
$10,001-$50,000
$50,001+
0% 25% 50% 75% 100%
2022 Craft Brewing Growth Trends 35Trending Investment #3: Operations
2022 IS THE YEAR
OF TECH STACK
EXPANSION FOR 73%
OF BREWERIES
2022 Craft Brewing Growth Trends 36The top three
softwares seeing investment?
POS, accounting, and marketing.
2022 Craft Brewing Growth Trends 37TECHNOLOGY FACILITATES OPERATIONAL EFFICIENCIES Maximizing efficiency with brewery technology is a long-term solution to running a brewing business better. Of the funds going towards technology in 2022, these are the top 3 softwares seeing investment: • POS Software • Accounting Software • Marketing Software Breweries not planning to invest in tech this year have a mixed bag of reasons not to. Lack of time, money, and other resources were common responses, but a majority tout that they already invested in the necessary tech in 2021. A favorite answer for not investing this year: ”Our tech is future-proof.“ Do they know something we don’t?! 2022 Craft Brewing Growth Trends 38
ARE YOU PLANNING TO INVEST IN YOUR BUSINESS WITH
NEW (OR EXPANDED) TECHNOLOGIES IN THE NEXT YEAR?
‘Tis the season of growth, and not just taproom-wise! Technology automates existing processes, organizes business
operations, and reports on what’s working and what’s not. This trend is all about craft folks saving themselves time
and headaches.
No
27.3%
Yes
72.7%
2022 Craft Brewing Growth Trends 39BLENDING SERVICE & TECHNOLOGY Cabarrus Brewing Co. in Concord, NC created a one-of- For pickup, they created a makeshift drive thru, loading a-kind destination in their taproom. In addition to high quality customers’ trunks with goods and using contactless mobile beer, Cabarrus knows environment is extremely important in app payments. curating an enjoyable experience for guests. That’s why they “Our second release took 2 hours to sell out, and our latest (and focus on staff education and flex between service models largest specialty release ever) sold out within 18 minutes.” based on need. -Corey Sloop, Chief Financial Officer Due to challenges surrounding in-person gatherings in Nowadays, Cabarrus continues to lean on a blend of 2020, their community-centric taproom full of shareable technology and face-to-face engagement to service guests. picnic tables had to pivot. Instead, Cabarrus offered pre- It appears other breweries are doing the same! orders for specialty beer releases on their online storefront. 2022 Craft Brewing Growth Trends 40
WHAT SOFTWARE DO YOU USE FOR OR WITHIN
YOUR BUSINESS?
Tickle us tech geeks starry-eyed with the results here. POS proves to make the brewing world go ‘round as the most
popular software in use, and operation-focused softwares (inventory, production, accounting) are leading the pack as
well, unsurprisingly.
POS Software
Accounting Software
Marketing Software
(Email, social media, etc.)
Inventory Software
Production Software
Ecommerce
Loyalty Program
HR Software
Reservation Software
Other
0% 25% 50% 75% 100%
2022 Craft Brewing Growth Trends 41HOW DOES ANNUAL REVENUE CORRELATE WITH
MARKETING BUDGETS?
Brewing businesses may not have a large amount to invest in marketing budgets, but that doesn’t diminish their efforts to
connect with guests. Lean on cost-efficient avenues: The best POS systems support loyalty programs and email marketing
free of charge, and social media is a great channel to generate genuine online interactions with guests.
Annual RevenueWHAT MAKES YOUR LOYALTY PROGRAM SUCCESSFUL?
Loyalty programs are great tools for driving traffic, engaging guests, and building brewery brands. And while discounting
may be your program’s first go-to, most breweries report the secret ingredient to loyalty program success is an increased
focus on regulars. This proves that people buy from people, and curating community in the taproom is essential.
Exclusive Releases
Merch Discount
Product Discounts
Focus on Your
Regulars
0% 20% 40% 60% 80%
2022 Craft Brewing Growth Trends 43Wrap Up & Highlights
IN THIS
UNPREDICTABLE
WORLD, LET’S
RECAP OUR 2022
PREDICTIONS.
2022 Craft Brewing Growth Trends 44HERE’S WHAT YOU CAN COUNT ON IN CRAFT THIS YEAR:
Craft business appears to be back on track. 62% of breweries saw growth in 2021, and 76% anticipate even better growth
in 2022! Those who are growing are focused on 3 key investments:
ON-PREMISE SALES: DISTRIBUTION: OPERATIONS:
Taprooms build community, and Using a distributor is directly Tech stack expansion is
people need community right now. correlated with annual revenue. a growing necessity to
As taproom sales grow in If you’re spending weekends on streamline operations.
profitability, breweries should a canning line, keep trucking. Finding efficiencies in new tech,
invest in enhancing guest Distribution leads to greater brand as well as investing in software
experiences and brainstorming awareness, and can influence how that optimizes guest connection,
new ways to engage surrounding rapidly you hit revenue goals. is on the to-do list for a majority of
neighborhoods. breweries this year.
2022 Craft Brewing Growth Trends 45JOIN THE 73% OF BREWERIES UPPING THEIR TECH
STACK IN 2022—STARTING WITH ARRYVED POS
Decrease service friction and increase guest satisfaction with a POS designed with your unique business’s success in mind.
Arryved helps you grow by creating contagious love and loyalty for your craft beverages. We offer:
Mobile, cloud-based POS: Take orders and Robust reporting tools: Identify actionable
payments anywhere, even in offline mode! insights and growth opportunities in a
comprehensive data dashboard.
Fully integrated loyalty program: Drive traffic,
engage guests, and build your brand. Integrations: Make your life easier and extend
the functionality of your POS.
QR code menus, ordering, & payments: Tech that
benefits guests, staff, and your bottom line. Unlimited US support: A team of support gurus
is on the other end of the line, 7 days a week.
Customizable online storefront: It’s easy to set up
and integrates inventory with your POS. No contracts, no monthly fees, no
onboarding fees, and no additional feature
fees: Amazing, right?
Schedule a custom demo with one of our friendly faced
specialists today by visiting Arryved.com.
2022 Craft Brewing Growth Trends 46arryved.com
720-441-4863
sales@arryved.com
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