Colorado craft brewers are independent by nature: but new Belgium founder says the industry is bound for consolidation.

• Author: Cote, Mike
• Position: GREAT AMERICAN BEER FEST

The decision by Molson Coors and SABMiller in 2007 to merge their U.S. and Puerto Rican operations to better compete with Anheuser-Busch represented a watermark in the increasing consolidation of the brewing industry--and modified the moniker yet again of Colorado's iconic brewer, which began operations in 1873 as the Adolph Coors Co.

That stands in stark contrast to the craft-brewing industry, where independence remains a badge of honor as strong as the high-alcohol content varieties these breweries champion. While the major players have made investments in boutique breweries, such as Anheuser-Busch's $38.8 million purchase last year of Chicago's Goose Island Brewery, the country's 1,900 craft breweries tend to be owned by people who joined the business for the love of beer rather than money.

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"I was a home brewer. It's been my hobby and my dream to start a brewery," said Brian O'Connell of Renegade Brewing, a Denver brewery he founded with his wife, Khara. Renegade recently began canning its flagship brand, Ryeteous Rye IPA (India Pale Ale), for retail sale.

O'Connell, who says his last job involved research and statistics for an unrelated industry, financed his company thus far without outside help. "In the future, we'll get to a point where we will need a large cash infusion. Whether that comes from a bank or a private investor, who knows at this point? For now, we're happy that we're doing well and that we have the money to do some expansion."

O'Connell was among a small group of Colorado craft brewers gathered recently on the rooftop bar of a Denver tavern when the Colorado Brewers Guild announced the results of an economic impact study. According to the University of Colorado Business Research Division, Colorado's 139 craft breweries contribute $446 million annually to the state's economy plus pay an additional $9 million to the state through a beer excise tax. Craft brewers create at least 5,800 Colorado jobs, the study reported.

"Statewide we're seeing success everywhere. From Fort Collins down to Durango, breweries are growing. They're adding jobs," said Steve Kurowski, who directs marketing for the trade association. "We're adding construction, buying equipment. It's a real significant industry. No question about it. Craft brewers represent about 4.4 percent of sales in Colorado, but we represent about 60 percent of the beer jobs in the state."

While those numbers might sound impressive you need to look...