Park Street Companies has teamed with the American Craft Spirits Association (ACSA) and the International Wine and Spirits Research group (IWSR) to develop and release the Craft Spirits Data Project for a third year.
KEY FINDINGS AND HIGHLIGHTS
- The craft distilling industry sold nearly 7.2 million cases in 2017, up 23.7% in volume over 2016, with $3.7 billion in sales and 29.9% growth by value.
- The number of active craft distilleries* in the U.S. grew by 15.5% over the last year to 1,835 distilleries.
- Craft Spirits industry investment has doubled over the past two years.
- Exports are up 5.7% since 2016 with more than half a million cases exported.
- Distillery and tasting room sales make up 40% of all sales for small craft distilleries, while out of state sales make up 62% for larger craft distilleries.
- Some states are “craftier” than others, with California, New York, Washington, Texas, and Colorado.
- Federal Excise Tax (FET) reform is helping to stimulate craft spirits growth.
PROJECT BACKGROUND AND METHODOLOGY
The Craft Spirits Data Project © 2018 is a proprietary research project whose goal is to provide a solid and reliable fact base for evaluating performance and trends in the U.S. craft spirits industry. The Craft Spirits Data Project, which was first announced and presented in 2016, is the beverage industry’s first-ever comprehensive craft distilling study. The Project quantifies the number, size, and impact of craft spirits producers in the United States.
Together, the ACSA, Park Street, and the IWSR launched the Craft Spirits Data Project in October, 2015. 2018 data collection began in January, and remained ongoing through August, 2018. The Project collected data primarily from spirits producers (DSPs), distributors and retailers.
The program aims to create a deeper understanding of the U.S. craft spirits landscape among three key groups: DSPs, distributors and retailers. The study collected comprehensive data on craft distiller production size and patterns, sources of revenue, and the category’s overall economic impact within the spirits industry. The Project also collected data on craft spirits business size, patterns and outlook on the distributor level and assess craft spirits business size and outlook by premise type at retail.
When estimating the number of producers behind the U.S. craft spirits production, the project team relies on a combination of official data released by regulatory authorities, survey data, other industry data sources both national (e.g., NABCA, ACSA) and regional (e.g., Guilds), as well as interviews and team assessments using the craft distiller definition.