Craft Brewing Trendy in the South

March 30, 2015 – Craft beer stories emanate from both coasts, the mid-west and Texas.  Now the southern states are catching up.  Fifteen years ago Diamond Bear brewery opened in Arkansas and it was a struggle.  It won awards but failed to break even most of those years.  After all, in Arkansas they drank Bud and Busch.  Now there are 20 breweries in the state with most of the growth coming since 2011.

Other southern states are riding the wave with Arkansas.  According to CNBC, Alabama, Florida, Georgia, Louisiana, Mississippi and South Carolina nearly all saw 20 percent production growth from 2012 to 2013.  Since they were so far behind, it was easier for them to double in size.  More mature markets such as Colorado, Washington and Oregon are slowing down a bit.

Southern states impose more taxes and regulations on brewers.  For example Georgia and Mississippi do not allow any retail sales at breweries, and we’ve reported on efforts in Florida by beer distributors and retailers to stop tasting room sales.  This makes staying afloat and turning a profit that much more difficult.

The leading producer in the south is North Carolina with 125 microbreweries and brewpubs.  A few well-known craft brewers such as Sierra Nevada have opened plants there.  The laws are moderately progressive and in the case of some western brewers, they are locating plants where there is plentiful water.
Meanwhile, over in Texas there are now 119 breweries, a 24 percent increase over 2013.  Nineteen opened in the last six months.  An additional 26 have TABC approval and should open soon while another 20 have picked their locations but do not have approval as yet.