Examining the Craft Beer Bubble with the Brewers Association’s chief economist Bart Watson

Craft beer is booming in America. We’re likely to hit 7,000 breweries by the end of the year, more than double the number just five years ago. With the explosion of new breweries many fear that we’re in a bubble, and it’s about to bust. But is that the case?

Bart Watson, chief economist at the Brewers Association, joins us this week to discuss the existence of the craft beer bubble and examine the numbers of what’s really happening. Watson shares some details on the rate of brewery openings and closures and what those numbers mean. Attendance at the Great American Beer Festival, from brewers and consumers, is up and every competition category gets its fair share of entries. We discuss how excise tax cuts and higher tariffs are impacting brewers and consumers, how the industry today looks compared to the late 1990s, and what more legal weed could mean for craft beer.

Beer Guys Radio Craft Beer Podcast 146

Guest: Bart Watson, Chief Economist, Brewers Association

Topic: The Craft Beer Bubble and State of the Craft Beer Industry

Episode Guide

Sponsor thanks and show intro | 0:00

Bart Watson introduction | 01:35

Ultimate Frisbee talk | 01:52

GABF attendance recap | 02:54

Beer Guys Week in Review | 03:50

Georgia homebrew laws | 06:40

Beers of the Week | 07:08

Craft beer news | 08:40

Oops! Data correction | 12:50

Craft beer collectives and status as craft breweries | 13:25

GABF medal analysis and trends | 14:21

Popular GABF categories outside of IPA | 15:21

Does the Craft Beer Bubble exist? | 17:20

Brewery openings and closures | 19:15

Craft beer industry today vs. the late 90s | 19:50

US brewery numbers and growth potential | 23:35

Brewery excise tax relief – Craft Beverage Modernization and Tax Reform Act (CBMTRA) | 27:24

Brewery excise tax relief – Craft Beverage Modernization and Tax Reform Act (CBMTRA) | 27:24 Aluminum and steel tariffs | 30:35

Challenges for new breweries | 34:40

Wine and spirits vs. craft beer vs. big beer | 36:00

Alternative alcoholic beverages | 38:00

Breweries making other beverages | 39:00

Legal cannabis/marijuana vs. craft beer | 40:29

Independent Craft Brewer seal | 42:07

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