While in-state craft beer production has come a long way since 2009, the Colorado-based Brewers Association found Alabama ranked 50th in per-capita economic impact in a 2013 state-by-state industry analysis.

(Courtesy of brewersassociation.org)

A recent Brewers Association white paper analyzing the larger study found craft beer currently generates 2,466 full-time jobs and has a total economic impact of $238 million statewide. Most of the impact is from imported beer brands, such as Sweetwater and Sierra Nevada.



Bart Watson, chief economist for the Brewers Association, said Alabama could add roughly $284 million to the state Gross Domestic Product (GDP) and nearly 3,000 direct, indirect and induced jobs if the state were to achieve 2012 national averages in economic and employment per capita.

"Given that in-state production represents roughly one-third of the total beer value chain, an increased in-state industry would be the primary driver of increased per capita and total economic impacts," he said.

Manufacturing

Dan Roberts, executive director of the Alabama Brewers Guild, said the real growth potential for craft beer is in manufacturing. This year, the ABG plans to promote a bill in the Legislature that would create a craft brewers license, opening doors that were previously blocked to state beer makers.



Alabama lost two potential economic developments projects last year when Stone Brewing Company passed over the state for a new $74 million facility in Richmond, Va. Cigar City Brewing, a Florida-based beer maker, said in November it wasn't even considering Alabama for its Southeast expansion because self-distribution and direct on-site brewery sales were not present.

Alabama and Georgia are the only states with an absolute prohibition on direct sales. The license ABG will push this spring would allow businesses to brew up to 2 million barrels of beer annually, operate an on-site restaurant, give away free beer samples and sell for on- or off-premise consumption.

Since current law allows brewpubs to sell beer only by the glass, ABG will also work to give licensees the option to sell beer for off-premise consumption. The group wants to make it legal for brewpubs and craft brewers to participate in entertainment districts.

To realize Alabama's full craft beer potential, Roberts said policy makers must find ways to support production across the state.

"There's not many legal barriers to distribution and retail," Roberts said. "There are major barriers in manufacturing. One bill will not create 3,000 jobs overnight, but removing an unusual restriction on a manufacturing industry is a necessary first step."

Beer production

Alabama beer production jumped from approximately 1,000 barrels to just short of 30,000 from 2009-13. Beer production increased 47 percent in 2013 from the previous year, the ABG reports.

The ABG said there were 121 direct employees working in the Alabama brewing industry in 2013 compared to 85 in 2012, an increase of 42 percent. The number of existing breweries nearly doubled from seven in 2012 to 13.

Watson said craft brew retail sales were $14.3 billion in 2013 and were forecasted to grow at ~20 percent in 2014.



Off-premise sales would allow beer lovers to take home a case or keg from an Alabama brewery. Now, the majority of in-state beer makers are forced to work through the three-tier system of brewer, distributor and retailer.



Matt Broadhurst, operations manager at Straight to Ale, told AL.com last month direct sales would have a significant impact on Straight to Ale's growing business, which often serves tourists from outside the state who want to buy beer to take home.



"They're used to that in their markets," he said. "We're losing income we could do on direct sales that could directly influence us hiring more people to help work the taprooms, with packaging. It would expand the market for a lot of us."