A Refreshing Look At BeerBy: JJ Cavanaugh and Wes Perry

Agenda

2

Last Call

Introduction

Industry

Types Of Beer

Consumption

3

Introduction

Last Call

Introduction

Industry

Types Of Beer

Consumption

Source: Hub, Slash 4

• What’s the most expensive beer per bottle and its cost?

• What rank does beer hold in terms of most popular drink?

• What U.S. historical event would not have occurred without the aid of beer?

• What is the fear of an empty beer glass?

“Tutankhamen” $52

2nd behind tea

Pilgrims landing at Plymouth Rock

Cenosillicaphobia

Fun Facts To Know

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Consumption

Source: Beer-FAQ

• Water– Best to use filtered or spring

• Yeast– Creates the alcohol in the beer– Two types of yeast: Ale and Lager

• Malt– Essentially barley grains about to sprout– Turned to mash before being entering brewing process– Acts as a catalyst for the fermentation process

• Hops– Adds bitterness, spicy flavoring, and aroma– Bacterial inhibitor and natural clarifying agent

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Types Of Beer

Consumption

5

Essential Ingredients

Source: About 6

Annotated Timeline

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7

Industry

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Consumption

Source: Beer Institute 8

U.S. Market Share For Brewers

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A-Busch50%

Miller-Coors29%

Crown5%

Heineken-USA4%

Pabst3%

Other9%

Source: Beer Serves

• Generated $33.5 trillion in business and personal taxes

• 553,000 total establishments– Retail (99.1%)– Wholesaler (0.6%)– Brewers (0.3%)

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Economic Impact For 2010

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State Jobs Wages (Billions)

California 229,700 $ 10.5

Texas 146,000 $ 5.8

New York 99,200 $ 4.6

Georgia 59,300 $ 2.2

Montana 7,600 $ 0.2

Total U.S. 1,800,000 $ 71.2

Source: Brewers Association

• Brewery classification by barrels* per year produced – Large Brewery: > 6 million– Regional Brewery: 15,000 – 6 million– Microbrewery: < 15,000

• Other classifications– Brewpub is a restaurant brewery that sells 25% or more of

its beer on site– Contract brewing company outsources its beer production

to another company– Regional craft brewery is an independent brewery with

> 50% of its volume in malt beers

*1 barrel = 31 U.S. gallons

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Market Segments

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Source: Brewers Association 11

Microbrew Growth By Year

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• Craft brewing industry grew 9.0% by volume in first half of 2010– Total U.S. beer sales declined 2.7% by volume

2006 2007 2008 2009 20101300

1350

1400

1450

1500

1550

1600

1650

1370

1424

1474

1525

1625

Number of Breweries

Avg

Num

ber O

f Bre

wer

ies

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Types Of Beer

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Types Of Beer

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Source: Epinions

• Characteristics– Light golden color– Moderate amount of malt taste and substantial hops taste– Alcoholic level of 4.0-5.0%– Pale body and crisp dry finish

• Examples– Sam Adams Golden Pilsner– Warsteiner– Pilsner Urquell

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Pilsner

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Source: Epinions 14

Lager

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• Characteristics– Emphasizes the flavor of grain and yeast– Fermentation process lasts few weeks to months– Most popular beer in U.S.– Smooth flavor

• Examples– Yuengling– Shiner Bock– Budweiser

Source: Epinions 15

Ale

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• Characteristics– Fruity taste– Sharper taste than Lagers with more hop flavor– Should be served around 50 degrees– Uses top-fermenting yeast

• Examples– Sierra Nevada– Smithwick’s– Newcastle

Source: Epinions 16

Porter

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• Characteristics– Dark top-fermented beer– Alcoholic level of 4.5-6.0%– Full body taste that’s strong and malty– More filling and higher calories than the average beer

• Examples– Guinness– Sam Adams Honey Porter– Catamount Porter

Source: Epinions 17

Stout

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• Characteristics– Four types of stout

– Dry, milk, imperial, oatmeal– Typically flavored with coffee and chocolate– Darker, hoppier, and richer than a Porter– Brewed using roasted barley and a generous amount of

hops• Examples

– Murphy’s– Guinness Stout– Sam Smith’s Oatmeal Stout

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Consumption

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Source: Beer Brewing 19

Demographics

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• Men typically favor domestic light beer• Women attracted more to specialty microbrews

– Attributed to the greater variety

Men80%

Women20%

Consumption Of Total Beer Volume By Gender

Source: Beer Institute 20

Gallons Consumed Per Person(2010)

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40.0 >

30.0 ≤ 34.9≤ 29.9

35.0 ≤ 39.9

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Last Call

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• Beer has greater popularity than you might expect• The whole greater than the parts

– Type of beer can change dramatically based on use of ingredients

• More companies involved than just Budweiser or Miller-Coors– Industry as a whole greatly affects U.S. economy

• Men are not the only consumers of beer

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More Than Meets The Tongue

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Drink Responsibly

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Questions

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25

Sources

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• http://hubpages.com/hub/beertriv• http://www.slashfood.com/2009/09/01/beer-trivia/• http://www.beer-faq.com/beer-ingredients/• http://beer.about.com/gi/o.htm?zi=1/

XJ&zTi=1&sdn=beer&cdn=food&tm=3&f=00&tt=14&bt=0&bts=0&zu=http%3A//www.beersweetbeer.com/beer_history.html

• http://www.beerinstitute.org/beerInstitute/files/ccLibraryFiles/Filename/000000000906/Industry%20Update%202008-Website.ppt

• http://www.beerservesamerica.org/economic/default.aspx• http://www.brewersassociation.org/pages/business-tools/craft-brewing-

statistics/market-segments• http://www.brewersassociation.org/pages/business-tools/craft-brewing-

statistics/number-of-breweries• http://www.epinions.com/content_1857265796• http://www.epinions.com/content_1669570692• http://www.epinions.com/content_1664655492• http://www.epinions.com/content_1428856964• http://www.epinions.com/content_1435017348• http://www.beer-brewing.com/beer-brewing/US_beer_industry/

beer_demographics.htm