Home Back Issues June 2011 Oregon craft beer business keeps growing

Oregon craft beer business keeps growing

| Print |  Email
Articles - June 2011
Wednesday, May 18, 2011
0611_BeerBusiness
An expansion of the Deschutes Brewery restaurant will include additional seating, a new kitchen, bakery and private party rooms. // Image courtesy Deschutes Brewery
Oregon craft beer, despite fear of falling sales and a hesitation to expand throughout the recession, is doing better than ever. “Everybody seems to be growing right now, it’s a good time,” says Gary Fish, founder of Bend-based Deschutes Brewery.

Craft beer is about 5% of the national beer market. And while consumption of beer overall fell by about 1% last year, craft beer consumption was up 11%. Oregon beer production has increased 15.2% since 2008.

Eugene-based Ninkasi Brewing wrapped up a $4 million expansion last year, and is on track to sell 50,000 barrels this year, up from 30,000 last year. Ashland-based Caldera Brewing grew by 38% in 2010 and has tentative plans to build a new brewery this summer. Standing Stone Brewing, also in Ashland, reports steady growth over the last four years, with projections of 15% growth this year. Portland-based Lompoc Brewing installed a new silo in January of this year that will double its capacity.

Deschutes is currently constructing an $8 million expansion that will add 6,750 square feet to its production facility and will include five new fermentation tanks, a new two-story building to house future processing equipment, an electrical control room, and new restrooms and showers for the staff. The expansion will increase Deschutes’ brewing capacity by about 100,000 barrels per year. The company sold 205,000 barrels in 2010 and is expecting to sell 225,000 this year. Construction is expected to be finished by mid-2012.

The plan has been in the pipeline for years, says Fish, but he waited to see how the recovery would pan out. “Now we can no longer wait, we need the production,” he says.

Kurt Widmer of Widmer Brothers Brewers, which merged with Red Hook in 2008 to create the Craft Brewers Alliance and has since purchased two breweries, points to the relatively small market share that craft beer commands over non-craft competitors. There’s room to grow, he says, and thinks the explosion of craft breweries across the state is a good sign.

“It’s made more and more people interested in beer,” he says. “Clearly, we’ve all benefited from that.”

ILIE MITARU
 

More Articles

Podcast: Interview with Steve Balzac

Contributed Blogs
Tuesday, August 19, 2014

082014BalzacBY TOM COX | OB BLOGGER

Tom Cox interviews Steve Balzac, author of "Organizational Psychology for Managers."


Read more...

The Alchemist

September 2014
Tuesday, August 26, 2014
BY LINDA BAKER

David Howitt explains why Portland consumer brands like Stumptown and Voodoo Doughnuts are taking the world by storm.


Read more...

Managing family assets: The importance of planning ahead

News
Friday, August 22, 2014
Unknown-1BY CLIFF HOCKLEY |  OB GUEST CONTRIBUTOR

When business intersects with family, a host of  situations can arise. Without a clear vision and careful planning, hard-earned investments can become stressful burdens.


Read more...

Green Endeavor cleans up

News
Wednesday, August 06, 2014
080614 ULnew greenendeavorBY LINDA BAKER | OB EDITOR

Portland startup Green Endeavor strikes gold, inking a partnership with Underwriters Laboratories, an Illinois-based consulting and certification company with offices in 46 countries.


Read more...

Podcast: Testing for Emotional Intelligence with John Hersey

Contributed Blogs
Friday, September 19, 2014
ivbU3sIXBY TOM COX | OB BLOGGER

How can you tell if you, a peer, a subordinate or a job candidate has the emotional intelligence needed to do well?


Read more...

Poll Wrap-Up

News
Friday, August 15, 2014

2014 NewPoll-report-newsletterthumbIn this week's poll, we asked readers: "Who should pay for the troubled Cover Oregon website?" Here are the results.


Read more...

How to add positivity to your team

Contributed Blogs
Friday, September 12, 2014
happy-seo-orlando-clientsBY TOM COX | OB BLOGGER

I often talk about what leaders can do. What about followers? If you’re a team member and you’d like to add positivity to your team, what might you do?


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS