This document from the Oregon Office of Economic Analysis discusses the growth of the craft beer industry in Oregon. It notes that while there are many small breweries, the largest 10% of breweries produce 77% of total beer. It also outlines various avenues for brewery growth, such as increasing local market share, domestic expansion, and mergers & acquisitions. Additionally, it shows Oregon has a higher concentration of alcohol-related jobs than the national average.

1. OFFICE OF ECONOMIC
ANALYSIS
Reversing the Oregon Trail:
A Beer Expedition
November 30th, 2016 Oregon Office of Economic Analysis
Josh Lehner
Disclaimer: The views expressed here do
not represent the State of Oregon, the
Legislature, nor the Governor.

2. OFFICE OF ECONOMIC
ANALYSIS
Start-Ups Drive Growth
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ANALYSIS
Reversing the Oregon Trail, Pt 1
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ANALYSIS
Reversing the Oregon Trail, Pt 2
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ANALYSIS
Reversing the Oregon Trail, Pt 3
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ANALYSIS
Alcohol Is Better Than Software
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ANALYSIS
New Opportunity
• HB 4146 (2016)
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ANALYSIS
Additional Work From
Previous Research
Most data through 2014 and has not been updated.
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ANALYSIS
Avenues of Growth
• Increase Local Saturation
• Market penetration,
multiple locations, etc
• New Glarus (WI)
• Domestic Expansion
• East Coast Facilities
• Deschutes (OR)
• New Belgium (CO)
• Sierra Nevada (CA)
• International
• Brooklyn Brewery (NY)
• Mergers and Acquisitions
• 10 Barrel (OR)
• Calapooia (OR)
• Hop Valley (OR)
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Jan-06 Jan-08 Jan-10 Jan-12 Jan-14
Brewery Acquisition
Barrels of Beer, 12 Month Moving Sum
Source: OLCC, Oregon Office of Economic Analysis
Moved Siletz 15 bbl
system to Albany
Siletz
Calapooia
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ANALYSIS
Start-Ups Drive Growth
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ANALYSIS
Lots of Little Guys, Big Dominate
• Smallest 50% of
breweries produce
3% of total
• Largest 10%
produce 77%
• Less inequality
today than in 2005
0.6%
2.9%
9.0%
23.3%
0%
25%
50%
75%
100%
0% 25% 50% 75% 100%
CumulativePercentofProduction
Cumulative Percent of All Breweries
2014 Oregon Beer Production Distribution
Lots of Small Brewers but Large Dominate
Source: OLCC, Oregon Office of Economic Analysis
Bottom
50%
Bottom
80%
2005 2.4% 9.0%
2014 2.9% 12.0%
Note: This is Oregon-brewed and Oregon-sold beer only. Exports,
domestic and international, are not included. As such, the smallest 50%
produce smaller share of total Oregon beer production.
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ANALYSIS
Sasquatch: The Brewpub Model
Sasquatch Brewing’s growth
path is stronger, but typical.
Start small successful pub,
grow, and add some
accounts. Now expanding
into ciders and 2nd location.
Even with a growing market
overall, competition does
occur.
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ANALYSIS
Widespread Geographic Footprint
Gorge
8.9
Central Oregon
5.9
South Central/Southeast Oregon
1.6
Northeast Oregon
3.1
Portland
5.3
Southern
Oregon
3.2
Willamette
Valley
3.5
N. Coast
8.3
S. Coast
2.0
Alcohol Cluster
Jobs per 1,000
Population (2013)
U.S. 2.9
Oregon 4.6
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ANALYSIS
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For More Information
Josh Lehner
joshua.lehner@oregon.gov
(503) 378-4052
Social Media:
www.OregonEconomicAnalysis.com
@OR_EconAnalysis