The Future Of Craft Beer In Knoxville, Tennessee
The craft beer world has seen new heights within the nation in the last decade. According to the Brewers Association, craft brewery production grew from approximately 5.5 million barrels in 2006 to approximately 25 million barrels, or 6.2 billion pints, in 2016.
Knoxville, Tenn. is seeing this growth first-hand. The city is currently home to 13 breweries which range between regional breweries, micro-breweries and brewpubs. And eight more plan to make their mark on the craft beer scene.
The significant rise in craft breweries is due to the demand for more than just the mass produced Miller, Coors or Bud, or MillerCoors and Anheuser-Busch InBev. And it’s become a popular recreational activity for urbanites, and especially millennials.
However, what is the future of craft beer in Knoxville, Tenn.? Will Knoxville see a peak or over-supply in the craft beer market? Or could Knoxville become the next beer tourist destination, such as Asheville, N.C.? And how will the big three react to the growing rate of craft beer over corporate beer?
Knoxvillians love their craft beer. It can be observed through the popularity of breweries, but also through craft beer markets and brewery tours. Trailhead Beer Market, Bearden Beer Market and The Casual Pint are a few establishments that have capitalized on being the middle-man between craft beer companies and consumers. Knox Brew Tours takes clients to and from a range of breweries giving them an intimate tour of each establishment.
No one can say for certain what will happen to the market when these new breweries open, but certain factors will definitely play a role.
According to Blake Mathias, an associate professor in the Rucks Department of Management at Louisiana State University, location will become important for those relying on foot-traffic to bring patrons into their business.
Meghan Martin, a law student in Nashville, Tenn., said, “I’m more likely to go to a brewery if it’s in walking distance or a quick Uber ride away than a place across town.”
Owners in Asheville, N.C. strategically placed breweries across from each other in hopes that consumers will travel back and forth between them — despite the fact that they are competitors.
Ken Baker, a professor in the Haslam College of Business at the University of Tennessee, mentions how competition for the local dollar compared to distribution outside of Knoxville could influence the market. Location is less important if the brewery plans to focus more on distribution than in-store patrons.
Another aspect to consider is the increased competition for shelf space in grocery stores and tap handle space in other establishments.
One of the biggest factors to look out for is major corporate brewers attempting to get their piece of the craft beer world’s pie. These corporate brewers are buying out craft beer companies, change nothing and sell as if they are still craft beer.
Some notable sell-outs have been MillerCoors buying Terrapin Brewing Company and Anheuser-Busch InBev buying Goose Island Brewing Company along with dozens more.
There is no denying craft beer’s increasing popularity, but it is also on the brink of plateauing. While the hope is that all of these brewers see success in Knoxville, Tenn., the looming question is whether this plateau in growth will cause an oversupply of breweries?
Unfortunately, finding out exactly how and when a shakeout might occur is more difficult.
