Craft Beer Growth - An American Success Story

Double Digit Gain Reflects Consumer Demand For Beer Made by Small,
Independent, Traditional Brewers

Boulder, CO - February 20, 2007 - The continuing growth of craft beer
entered double digit territory in 2006, with sales by craft brewers up
11.7% by volume for the year. This comes on top of strong growth in
each of the prior three years and illustrates the ongoing surge of
consumer interest in craft beers.

"American tastes are clearly changing thus the demand for more
flavorful and diverse beers is exploding," said Paul Gatza, Director
of the Brewers Association, which tabulates industry growth data.

The Brewers Association estimates 2006 sales by craft brewers at over
6,600,000 barrels (one barrel equals 31 U.S. gallons) up from an
adjusted total of just under 6,000,000 barrels in 2005. The increase
totals over 690,000 barrels or 9.5 million case-equivalents. For 2006
craft beer posted a retail sales figure of $4.2 billion.

A strong area of distribution for craft beer is grocery, convenience,
drug and liquors stores. According to Information Resources Inc.
(IRI), "The beer category reaped growth from import (+10.9%) and micro-
brew (+16.9%) products, while suffering losses across domestic and non-
alcoholic varieties."

"Craft beer has become a great American success story and today U.S.
craft brewers are being watched, emulated and celebrated globally."
stated Julia Herz, Director of Craft Beer Marketing for the Brewers
Association. "Demand has become contagious. Craft beer is satisfying
the thirst and beer enthusiasm of a continuously growing number of
beer drinkers who are seeking flavor, diversity and value."

A more extensive release of the 2006 production numbers will be
available from the Brewers Association on April 19 at the Craft
Brewers Conference in Austin, TX and unveiled in the May/June issue of
The New Brewer magazine. The craft beer segment includes 1377
breweries.

The definition of craft beer as stated by the Brewers Association: An
American craft brewer is small, independent and traditional. Craft
beer comes only from a craft brewer. Small = annual production of beer
less than 2 million barrels. Beer production is attributed to a brewer
according to the rules of alternating proprietorships. Flavored malt
beverages are not considered beer for purposes of this definition.
Independent = Less than 25% of the craft brewery is owned or
controlled (or equivalent economic interest) by an alcoholic beverage
industry member who is not themselves a craft brewer. Traditional = A
brewer who has either an all malt flagship (the beer which represents
the greatest volume among that brewers brands) or has at least 50% of
its volume in either all malt beers or in beers which use adjuncts to
enhance rather than lighten flavor.

For further information on the craft beer industry and these
estimates, contact Paul Gatza 303-447-0816 x122 or Julia Herz
303-447-0816 x113.

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