The nation’s craft beer companies brewed 24.5 million barrels in 2015, according to figures recently reported by the Brewers Association trade group, besting the prior year’s production by 13 percent as retail sales grew by 16 percent, reaching $22.3 billion. Craft’s share in retail dollars is now at 21 percent of the U.S. beer market, and the industry nationwide continues its role as a job-creating juggernaut. Small and independent brewers added more than 6,000 workers in the past year, bringing the nationwide craft workforce to nearly 122,000.
The Special Report: Craft Breweries explores the craft brewing industry’s growth and workforce challenges, and highlights Employee Stock Ownership Plans (ESOPs) as an emerging corporate structure used by larger craft brewers. As the craft beer sector expanded rapidly through the mid-2010s—with strong production, rising employment, and increasing market share—breweries faced intensifying competition for talent and pressure to retain skilled workers. While many smaller breweries focused on traditional retention strategies like higher wages and benefits, larger and mid-sized companies began examining ESOPs as a tax-advantaged retirement and ownership transition tool.
The article notes that ESOPs were still relatively uncommon among craft brewers at the time, but several well-known breweries—including New Belgium Brewing Co., Deschutes Brewery, Harpoon Brewery, Odell Brewing Co., and Left Hand Brewing Co.—had at least partially converted to ESOP ownership, using them to reward employees and keep ownership within the company. Experts highlighted that ESOPs can help companies maintain independence, align employee interests with business success, and provide tax benefits, though careful planning and internal deliberation are essential before adopting such plans.
Key Takeaways:
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Craft brewing industry growth: The U.S. craft beer market experienced significant production and job growth leading up to 2015.
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Workforce retention & culture: Breweries employ a variety of strategies—beyond ESOPs—to attract and retain talent, given tight competition.
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Emerging use of ESOPs: Larger craft brewers are increasingly exploring ESOPs as a way to reward employees, transition ownership, and secure tax advantages while preserving independence.
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Examples of ESOP adoption: Several prominent breweries had initiated ESOPs by 2016, signaling growing interest in employee ownership within the industry.