Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
Beverage NewsWine & Spirits

Study finds more than 1,300 active craft spirits producers in US

US craft spirits market shows potential for growth

Beverage News
October 18, 2016

The American Craft Spirits Association (ASCA), International Wine and Spirits Research (IWSR) and Park Street released highlights from the Craft Spirits Data Project at the inaugural Craft Spirits Economic Briefing at the Nomad Hotel in New York. The Craft Spirits Data Project, announced earlier this year, is a research initiative to provide a solid and reliable fact-base for evaluating performance and trends in the U.S. craft spirit industry, the companies say.

The year-long Craft Spirits Project, which seeks to quantify the number, size and impact of craft spirits producers in the United States, is an effort led by ACSA, IWSR and Park Street, with collaboration from key government and industry organizations, including the U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB), the National Alcohol Beverage Control Association (NABCA), American Beverage Licensees (ABL), the Wine & Spirits Wholesalers of America (WSWA), and data partners Acturus, Liquor.com and Nielsen.

For the purposes of the Project, U.S. craft spirits were defined as distilled spirits that are produced in the United States by licensed producers that have not removed more than 750,000 proof gallons from bond, market themselves as craft, are not controlled by a large supplier and have no proven violation of the ACSA Code of Ethics, the companies say.

Key findings announced during the economic briefing include the following:

  • The U.S. craft spirits industry is growing rapidly. As of August 2016, there were 1,315 craft distillers active in the United States. The U.S. craft spirits market reached 4.9 million cases and $2.4 billion in retail sales in 2015, growing at a compound annual growth rate (CAGR) of 27.4 percent in volume and 27.9 percent in value between 2010 and 2015. The market share of U.S. craft spirits reached 2.2 percent in volume and 3 percent in value in 2015, up from 0.8 percent and 1.1 percent in 2010, respectively, it says. 
  • Exports offer an additional runway for growth. Exports of U.S. craft spirits reached 523,000 cases in 2015, adding more than 10 percent of additional volume to U.S. craft distiller total sales.
  • Employment and investment are on the rise among craft distillers. Employment in the U.S. craft spirits sector has been on the rise. In 2016, the industry employed more than 12,000 full-time employees. Investments by the U.S. craft industry have reached close to $300 million in 2015, which primarily covered the build-out of tasting rooms and other visitor experiences, equipment to increase production capacity and associated labor costs.
  • There is the potential for craft spirits to achieve market share parity with craft beer. Many surveyed retailers and wholesalers see the potential for craft spirits to perform in line or better than craft beer with time. With craft beer market share currently at 11 percent in the United States, the craft spirits market is expected to continue to grow rapidly, the Project notes.
  • Direct sales and home-state sales are crucial for small craft spirits producers. Direct sales at the distillery are important for all craft distillers, but are especially important for small craft producers (between zero and 100,000 proof gallons removed from bond annually), where direct sales make up 25 percent of all total sales. Home-state sales outside the distillery for small producers comprise 67 percent of all sales.
  • The U.S. craft distilling market remains concentrated. Geographically, the market is concentrated as well. The Top 5 states by number of craft distilleries (California, New York, Washington, Colorado and Texas) make up 35.6 percent of the U.S. craft distiller market, and the next five states (Oregon, Pennsylvania, North Carolina, Ohio and Florida) comprise an additional 16.5 percent of the market, it states. 
  • Respondents provide actionable recommendations for continued growth. Surveyed distillers, retailers and wholesalers provided actionable recommendations to the U.S. craft spirits industry and its regulators to help the industry continue to grow. Craft spirits producers point to excise tax parity as one of the most critical keys to success in the future. Taxes on distilled spirits are among the nation's highest, comprising 54 percent of the typical spirits product's purchase price. As the Louisville, Ky.-based ACSA previously emphasized, craft spirits producers remain disadvantaged compared with the nation's craft brewers and small wineries that receive a reduction in their Federal Excise Tax (FET) rate. Today, a craft spirits producer pays six times more FET than a craft brewer and 17 times more FET than a small winery for equal quantities of beverage alcohol, it notes.
KEYWORDS: alcoholic drinks beverage sales craft spirits

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Alternative Drinks
    By: Lauren Sabetta
  • Younger generation displays unique habits when it comes to beverage consumption

    Generation Z shakes things up in beverage

    Experts share that Gen Z is changing the standard on what...
    Beverage News
    By: Chloe Alverson
Subscribe For Free!
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

halfday sodas

Beverage-makers turn to fiber, prebiotics and more to support consumer needs

Anheuser-Busch Brewing Futures

Anheuser-Busch announces $300 million investment in US manufacturing

Alani Nu

Alani Nu surpasses $1 billion in retail sales

Vote for your favorite new product

Have your say in what makes it to the top this month!
Vote for your favorite new product and help us celebrate excellence.


VOTE NOW!

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

June 5, 2025

Heat-Resistant Molds 101: Fundamentals and Prevention Strategies for Better Beverage Quality

Learn about the spoilage challenges and operational bottlenecks that ascospores can pose to your quality program if detection is delayed, or worse – not detected at all. Subject matter experts will cover the basics of these bugs and real-world impacts of insufficient quality methods to help you beat the heat … resistant mold.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Timber Creek Distillery Bourbon

    Timber Creek Distillery releases bourbon blending kit

    See More
  • Beverage News

    IRI highlights hidden growth pockets

    See More
  • Beverage News

    Study finds shoppers spending more time in convenience stores

    See More

Related Products

See More Products
  • nanotech.jpg

    Nanotechnology in the Beverage Industry 1st Edition

  • nanoinbev.jpg

    Nanoengineering in the Beverage Industry 1st Edition

  • nonmilk.jpg

    Milk-Based Beverages 1st Edition

See More Products
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing