Hartford Business Journal

18 Hartford Business Journal • October 29, 2018 • www.HartfordBusiness.com By Joe Cooper jcooper@hartfordbusiness.com B rewery production in Con- necticut has surged by over 600 percent over the last six years, while the number of breweries in the state has more than tripled since 2014. The state's massive production growth in recent years ranks among the top 10 nationally, morphing Con- necticut's brewery sector into a $745.7 million industry in 2017. However, with 82 operating breweries in Connecticut, and almost 40 in plan- ning stages, the budding sector faces a key question: Is Connecticut's brewery industry becoming oversaturated? Connecticut brewers say the local industry is still ascending, even though the beer landscape has become crowd- ed with new businesses sprouting seemingly every month. Many estab- lished brewers say their annual produc- tion hikes have slowed in recent years as the market reaches its equilibrium. While breweries keep close tabs on their competitors, the majority say they are rooting for each other as local beer makers continue carving a larger share of sales from national vendors like Anheuser Busch, MillerCoors and Heineken. Nationally, beer volume sales last year were down 1.2 percent compared to craft beer sales that continued to rise 5 percent, according to the Brew- ers Association, which represents 74 breweries in Connecticut, including the state's three largest: Two Roads Brew- ing Co., Stony Creek Brewery and City Steam Brewery and Cafe. The craft beer market now accounts for 12.7 percent of beer sales in the U.S., the Colorado- based trade association says. But brewery growth has slowed in recent years, in both annual barrel production and the number of new breweries opening across the state. Barrel production, for example, rose 58.1 percent from 2015 (105,484) to 2017 (166,848), down from a 120 percent increase from 2011 (40,947 barrels) to 2013 (51,457). (By most U.S. definitions, a barrel equals 31 gallons.) Those figures indicate Connecticut's craft beer industry — which employs almost 11,500 people in brewing, wholesale and retail jobs — may be reaching its peak, says Bart Watson, a chief economist for the Brewers As- sociation. Still, Watson says Connecticut's brewery industry has some growth potential. The state, for example, has fewer breweries per capita (2.23 for every 100,000 adults age 21 and older) than neighboring states (Massachu- setts, 2.48; New York, 2.25; and Rhode Island, 2.24). "To me, these signs do point to the idea that Connecticut may be inching closer to an equilibrium or mature mar- ket state, but as long as that production growth continues, there will be opportu- nities in the local market," Watson said. The majority of Connecticut brewers are small, with most selling exclusively on-site. That gives them an oppor- tunity to build personal connections patrons crave in taprooms, which often feature live music and food trucks. "We've seen breweries can create their own demand," Watson said, likening the brewery industry to speciality cof- fee shops, which only recently gained popularity nationally due to market innovation. "Breweries can shift the benchmark of how much a state needs. How many can exist shifts over time." Local buzz The co-founding couple of Hart- ford's Hog River Brewing Co., Ben and Joy Braddock, are among many brewers statewide scaling up to meet hyperlocal demand. After two years in business, the brewery is currently expanding its 5,500-square-foot facility in the Parkville neighborhood to accommodate a 7,000-square-foot taproom and 3,000 square feet of brewing space by year-end. Hog River, Joy Braddock says, has benefitted from the presence of three other breweries in the Capital City, in- cluding City Steam Brewery, Hanging Hills Brewing Co. and Thomas Hooker Brewery at Colt. Similar to "bar hopping," a cluster of breweries in Hartford has created a hotbed for craft beer tourists looking to visit several breweries in a day, she said. And that's good news for Hog River and its taproom, which accounts for 90 percent of its sales. It also helps that the Braddocks have a strong relationship with other local brewers, including collaborations with nearby Hanging Hills. Ben Braddock, who broke into the industry more than a decade ago with stints at Hooker Brewery and Willimantic Brewing Co., says entre- preneurs are drawn to the business because there isn't "fierce" competi- tion seen in other industries. "We all reach out to each other when we need things and share information," Joy Braddock said. "It's a brotherhood Tapped Out? CT beer brewers wonder if growing sector is becoming oversaturated HBJ PHOTO | STEVE LASCHEVER Joy and Ben Braddock, co-owners of Hartford's Hog River Brewing Co., say they have benefitted from the presence of the Capital City's three other breweries. The couple is currently expanding their taproom and brewing space on Park Street to 10,000 square feet.

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