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Craft beers taking larger gulps from brewery markets: rising energy and hops prices affect production costs, yet 'brewpubs' expand.

Publication: San Diego Business Journal
Publication Date: 28-APR-08 		Format: Online
Delivery: Immediate Online Access

Article Excerpt
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Perhaps it's the climate or the inclination of its residents to experiment with novelties, but for whatever reason, San Diego is a hotbed for craft beer making, and now home to 20 different breweries.

The rise of craft beer here comes mostly at the expense of national beers and imports whose sales have been flat or barely rising in recent years, say local brewers.

"The pie (of craft beer sold locally) is absolutely growing," said Chris Cramer, co-founder of Karl Strauss Brewing Co., which was launched in 1989. "Everyone has got their own niche and we're friends in beer."

According to the Brewers Association, a Colorado-based trade group of craft beer makers, sales by craft breweries last year rose 12 percent to more than 8.1 million barrels. (A barrel...

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