SIC 2082 Malt Beverages
SIC 2082
This category includes establishments primarily engaged in the manufacturing of malt beverages, including ale, beer, malt liquor, nonalcoholic beer, porter, and stout.
312120
Breweries
Beer has been a part of the American lifestyle since the birth of the country. Beer was brewed in colonial America and was made by American Indians. Through the years, beer has served cultural, spiritual, and even medicinal purposes. With nearly 80 million U.S. beer drinkers, beer has become one of the most popular beverages, second only to water and tea. The addition of flavored malt beverages has helped to maintain, and even enhance some industry sales, despite the health risks associated with high alcohol consumption.
Each year, the U.S. malt beverage industry produces and sells more than 2.6 billion cases of beer, or about 180 million barrels. A barrel of beer is equal to two kegs or 31 gallons, which is roughly equal to 13.8 24-unit cases of 12-ounce cans or bottles. However, the overall industry affects other markets, such as the food service and entertainment industries. According to the Brewers Association, the overall U.S. brewing industry dollar volume was $77 billion in 2004. The statistics indicated that 1.78 million jobs were created by beer production alone, with industry wages of $54 billion. Beer sales also brought in more than $30 billion in business, personal, and consumption taxes for 2004. The Brewers Association valued the economic impact created by beer at $144.5 billion.
According to the Beer Institute, which is the trade association for the malt beverage industry, the United States is the world's largest producer of beer, brewing more than 20 percent of the world's volume. More than 1,800 brewers and beer importers operate in the United States. The U.S. malt beverages manufacturing industry employs over 30,000 workers and pays roughly $1.5 billion in wages.
Three major companies hold nearly 80 percent of the market share in the United States. These breweries are Anheuser-Busch, located in St. Louis, Missouri; Miller Brewing Company in Milwaukee, Wisconsin; and Coors Brewing Company in Golden, Colorado. The two top-selling brands, Budweiser and Bud Light, both belong to Anheuser-Busch. Ranking second was Miller with the third-best selling product, Miller Light. Ranked third was Coors Brewing Company with the fourth most-popular beer, Coors Light.
This industry includes only those companies that manufacture beer. The industry has consistently been dominated by three major U.S. breweries, yet, regardless of size, all breweries have to sell their products through wholesalers and retailers. This distribution channel is the result of accommodating the variety of federal, state, and local regulations regarding the sale of alcoholic beverages.
The Federal Alcohol Administration Act (FAA) was put into place at the end of Prohibition in 1933. Since that time, the Bureau of Alcohol, Tobacco and Firearms (ATF) has been responsible for administering and enforcing the FAA, including qualifying brewers, collecting brewer and wholesaler occupational taxes, and regulating trade practices, advertising, and labeling.
Beyond the uniformity of the FAA, regulations varied greatly among the 50 states, as the Beer Institute reported in their testimony to the U.S. Senate regarding the Malt Beverage Interbrand Competition Act. The most dramatic example of regulatory diversity is the way that states sell beer. "Open" states license retailers and wholesalers to handle the distribution and sale of alcoholic beverages. Thirty-two states and the District of Columbia are considered "open" states. The other 18 states operate under the control method, in which each state government buys and sells alcoholic beverages at the wholesale and retail levels.
In addition to federal regulations, some states set up independent agencies responsible for the administration, licensing, and enforcement of state laws and the collection of state revenues. Additionally, some state legislatures created their own Alcoholic Beverage Control (ABC) agencies with rule-making power, and 32 states have allowed citizens to vote for or against the sale of liquor in various cities or counties.
The foundation of the U.S. beer industry can be traced to the times of ancient kings and pharaohs. Babylonian clay tablets more than 8,000 years old depict beer being brewed and include detailed recipes. Other writings indicate that beer was brewed by the Egyptians as early as 3000 B.C. and by the Chinese in 23 B.C. One of the world's oldest breweries still in existence is Brauerei Beck in Germany, where Beck's beer was first brewed in 1533.
Beer was first brewed in America in 1587 at Sir Walter Raleigh's colony in Roanoke, Virginia, and Puritan settlers brewed beer in Boston as early as 1620. In 1791, Congress levied the first tax on alcohol. By 1870, Adolphus Busch pioneered the use of refrigerated railroad cars to ship beer over long distances. Following the steady development of temperance groups, the Pure Food and Drug Act, more commonly known as the Volstead Act, went into effect on January 16, 1920. This act ushered in the era of Prohibition, which banned the sale, possession, transportation, and consumption of alcoholic beverages. During this 13 year period, production and distribution of millions of gallons of alcohol fell into the hands of "bootleggers."
After Prohibition was repealed in 1933, federal and state governments tightened regulations under the Federal Alcohol Act (FAA) and various state regulations. Brewers also adopted policies of self-regulation, such as the Distilled Spirits Council of the United States's (DISCUS) voluntary "code of good practice." Following Prohibition, beer was produced in 750 locations throughout the country...
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