Oregon Brewers Guild Releases Impressive Statistics, But What Do They Mean?

The Oregon Brewers Guild released some statistics the other day that I think are worth sharing here on the Washington Beer Blog. How much craft beer does Oregon brew, how much do they drink, and so on. The information is impressive, to be sure. The Oregon Brewers Guild statistics are presented below in a press release and a fancy infographic.

This kind of information always provides fodder for debates about Oregon beer versus Washington beer. I don’t want to engage in the typical “our beer is better” foolishness. The way I see it, both states brew great beer and we shouldn’t discredit ourselves with such petty debates. What’s more interesting, let’s talk about the differences between the two states.

I express some opinions below and know that such behavior often generates a lot of feedback. Just remember that we’re only talking about beer; we shouldn’t assume that anything we say here is going to change the world.

Their Excessive Pride Versus Our Inferiority Complex

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Statistics show that Oregon’s beer lovers prefer to purchase Oregon-brewed beer. “Oregon breweries producing an estimated 53 percent of all draft beer consumed in Oregon.”

It occurs to me, which means it is just my opinion based on observation, that many Oregonians display an attitude that suggests, “Oregon beer is the best and I don’t want to drink beer from anywhere else.”  I think a lot of people agree with me when I say that this kind of provincialism extends beyond fermented beverages. As a person who appreciates the concept of drinking local, I consider it an admirable trait of the Oregon beer drinker.

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I’m seriously expecting to get comments like, “It’s not provincialism. Oregon beer really is the best.” That would be perfect.

This attitude obviously leads to the consumption of a lot of locally brewed beer, as statistics prove. There are also some regulatory reasons for it, but fierce provincialism helps make Oregon a challenging place to sell out-of-state beer.

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Conversely, Washingtonians, especially Seattleites, have an attitude that seems to suggest, “Our beer is lame and I want to drink beer from anywhere else.” Again, this is an attitude that transcends the beer discussion. I find it annoying that Seattle constantly wants to feel under-appreciated, unrecognized, and inferior. It makes us sound so insecure.

In Seattle, we welcome and embrace beer that is not from here. For example, consider Seattle Beer Week. The hottest events always involve Firestone Walker Brewing, Stone Brewing, and From Anywhere Else Brewing Company.

I’m seriously expecting to get comments like, “It’s not an inferiority complex. Washington beer really is lame.” That would be perfect.

An Example of Our Complex

According to the press release, “… 55 breweries in Portland and 75 in the Portland metro area.”

Seattle is currently home to 50 breweries. The Seattle metro area is home to more than 80, depending on where you draw the lines.

Portland has more breweries than any city on earth. I love telling people that. If that’s true, and I honestly think it is true, Portland is the only city on earth with more breweries than Seattle. Beyond that, I would surmise that the greater Seattle metro area has more breweries than any other metroplex on earth.

You never hear the typical Seattle beer geek talk about any of that. Seattle does not presume itself to be so cool. And even if they do concede the point, they’re still going to follow up with something like, “But our breweries can’t hold a candle to San Diego’s breweries.” Blah blah blah. The grass is always greener.

Who’s Counting, Anyway

Oregon is now home to 172 brewing companies operating more than 200 brewing facilities. That’s a lot. If you ask the Washington Beer Blog, the Evergreen State is home to 240-ish brewing facilities. If you ask the Washington State Liquor Control Board, 262 breweries. If you ask the Washington Beer Commission, you’ll get another number. (Why the discrepancy between their numbers and mine? Long story.)

It doesn’t really matter which state has more breweries. Collectively, between the two states, I predict we’ll have 500 breweries by the end of 2014. Remarkable.

Drink Local

In Washington, beer drinkers consume about one million barrels of craft beer per year. In total, Washington’s craft brewers only produce about 300,000 barrels per year. We drink a lot more than we produce. Even if we were all committed to drinking local beer, two-thirds of the craft beer consumed in Washington must come from somewhere else.

Size Matters

Oregon produces a lot more beer than Washington. A LOT more beer. Like, five-times as much beer. Why? Deschutes, Full Sail, Rogue and Ninkasi (in that order) all rank among the top 50 largest craft breweries in the USA. None of Washington’s craft breweries make the list. Only 22 of Washington’s 240-ish breweries produced more than 3,000 barrels per year. (See our previous post for a better explanation.)

Last year Oregon craft breweries produced 1.4 million barrels of beer. Washington craft brewers only produced 300,000.

They aren’t just bigger, they are much bigger. Deschutes, Full Sail, Rogue and Ninkasi are all much larger than any of Washington’s craft breweries. Last year Ninkasi, which is Oregon’s fourth largest craft brewery, brewed almost twice as much beer (95,000 barrels) as Washington’s largest craft brewery — Georgetown Brewing (52,000 barrels). The fourth largest craft brewery in Oregon brewed as much beer as our two largest craft breweries combined: Georgetown Brewing and Mac & Jack’s Brewing (43,000 barrels).

BTW: By definition, Redhook Brewery (140k barrels) is not a craft brewery and therefore does not figure into this conversation. Likewise,  Widmer Brothers Brewing is not a craft brewery and does not figure into this conversation. Both of those breweries fail to meet the definition of craft brewery as established by the Brewers Association because they are not independent; rather, they are part of the Craft Brew Alliance, a publicly traded company.

Note: I gathered these statistics from various sources, including Wikipedia, individual company websites, the Washington Beer Commission, and other sources. I did the best I could.

Economic Impact Equals Political Clout

Because Oregon breweries produce almost five-times as much craft beer as their counterparts in Washington, the economic impact of craft beer is obviously much greater in Oregon. More jobs, more tax dollars, and so on. Compared to Washington breweries, Oregon breweries generate more revenue in a state with a smaller budget.

In Washington we often look-on in envy at how friendly the Oregon legislature is to the craft beer industry, and we bemoan the fact that Washington’s craft brewers seem forced into constant battle with our representatives in Olympia. In 2013, while Washington brewers rallied against a proposed increase to the excise tax paid on beer, Oregon’s legislators passed a bill declaring yeast the state’s official microbe. Economically, and thus politically, Oregon’s brewers are bigger fish in a smaller pond.

Conclusions?

I’m not sure what any of this means. I just think it’s interesting. Maybe it means that Washington is a great place to build a small brewery and Oregon is a great place to build a brewery that you want to grow. Maybe it means that Washington beer drinkers prefer beer from small breweries. Although, in reality, Washingtonians are happy to worship beers from large, out-of-state breweries.

My only real conclusion is that beer drinkers in the Pacific Northwest are blessed. North and south of the Columbia River, we enjoy an embarrassment of riches when it comes to craft beer. Cheers to that.

PRESS RELEASE

Oregon In-State Beer Sales Continue to Grow, Sets New Record

Oregonians Buying Local Prove to Have a Positive Effect on Oregon Economy

PORTLAND, Ore. (June 25, 2014) — The Oregon Brewers Guild announced today that Oregonians bought more than 500,000 barrels of beer produced in Oregon in 2013, setting a new record in Oregon craft beer history and leading the U.S. in percentage of dollars spent on craft beer.

Oregon’s breweries crafted a little more than 1,400,000 barrels of beer during 2013, an 8 percent increase from the previous year. Oregon employment figures continue to strengthen, with the state’s brewing companies adding more than 200 jobs in 2013 and directly employing more than 6,600 people.

“We live in a unique state where we have the largest number of breweries per capita and also the highest percentage of dollars spent on craft beer in the U.S.,” says Brian Butenschoen, executive director of the Oregon Brewers Guild. “Oregon is also a destination for beer tourists where in Bend, 40 percent of its visitors said visiting a brewery or doing the Ale Trail was something they did when they visited. We have a city that just launched the fourth Ale Trail in Oregon in Eugene with the Eugene Ale Trail. Hood River has a brewery for every 1,433 residents and Portland has more breweries than any other city in the world.”

In addition to strengthening the local economy, Oregon’s 161 brewing companies donated to community non-profits in 2013, equaling $2,300,000. Retail sales of Oregon-made beer sold in the state totaled more than $400 million in 2013. In total, the brewing industry contributes $2.83 billion to the state’s economy and employs roughly 29,000 people directly and indirectly.

Currently, Oregon has 172 brewing companies operating 213 brewing facilities in 70 cities across the state. There are 21 in Bend, 30 in Central Oregon, 12 in Eugene, 55 breweries in Portland and 75 in the Portland metro area.

More than 18 percent of the 2.803 million barrels of all beer — both bottled and draft — consumed in the state were made in Oregon. For draft beer, that percentage is even higher, with Oregon breweries producing an estimated 53 percent of all draft beer consumed in Oregon. Outside of the United States, Oregon breweries exported 19,500 barrels to 29 countries including six Canadian provinces. Craft beer production in the U.S. grew 18 percent in 2013 and now represents 7.8 percent of the total volume of beer brewed in the United States.

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