Craft Beer Industry Injects $446 Million Into State Each Year

April 29, 2012 - PRLog -- Colorado Brewers Guild Finds Colorado Craft Beer Industry Injects $446 Million Into State Economy Each Year

Wert-Berater, Inc. is a leading provider of hospitality feasibility studies, including restaurants, breweries, wineries, hotels  and resorts.

Contact Vince Lewis to discuss your project

Phone 702.752.8084 888.661.4449 x8

E-mail: vlewis@wert-berater.com

How big is beer in Colorado? Pretty big. Scratch that: gigantic.

An April 21st release from the Colorado Brewers Guild estimates the economic impact of the entire industry on the state economy (Coors and Budweiser included) rings in at a jaw-dropping $18.5 billion. Even after removing components only tangentially related to brewing (impacts from suppliers, etc.) the direct annual impact is still estimated at a little over $7.8 billion dollars in the state every year, and growing.

On April 24, the Colorado Brewers Guild released a study focused exclusively on the economic impacts of craft beer (leaving out heavyweights such as Coors). The study determined that craft brewing in Colorado provides a $446 million boost to the state economy each year. The Denver Business Journal adds that craft brewers in the state produce only 4.6 percent of the total beer in Colorado.

"Colorado craft brewing creates a dynamic impact on the Colorado economy," said John Carlson, CBG Executive Director, in a news release. “Explosive growth continues to have a huge economic effect on the state, with no sign of slowing down.”

The study, conducted by the University of Colorado Business Research Division for the Colorado Brewers Guild, also found craft brewers have created nearly 6,000 jobs in the state.

“With 139 craft breweries and more on the way, we are the envy of the nation when it comes to brewing-up a dynamic beer culture,” said Dave Thibodeau, CBG president and founder of Ska Brewing in Durango, in a press release. “CBG brewers are the catalyst for creating an electric beer culture, while contributing to entrepreneurial activity, and spurring beer tourism throughout the state.”

As of March 2012, Colorado boasted 139 licensed craft brewers with an additional 75 in various planning stages.

A feasibility study is an unbiased, third party, report provided by a non-financially related firm that is intended to present a complete risk assessment. It is not a sales brochure, a marketing pitch or a document used to stand-alone specifically raise capital or comply with the legal requirements set forth by law to raise money.

The intended user is to use it as a guide to make their own decisions and no feasibility study can purport to be all inclusive of all facts. However, we do our best with the time allocated and monies expensed to provide the best analysis possible.

If the business plan is changed, the results of the feasibility may change. The purpose of a feasibility study is to present a reasonable determination as to the outcome of a project or business based on current market conditions. The Monte Carlo Simulations are great tools to measuring probability of outcomes if project or market conditions change, however even these types of analyses have limitations.

The scope of a feasibility study varies from project type and scope of work required however generally the following items are included.

Economic Feasibility

Market Feasibility

Technical Feasibility

Financial Feasibility

Management Feasibility

A feasibility study is an analysis of the viability of a proposed concept. The study centers on aiding our clients in answering the critical question of “should we proceed with the proposed project idea?” The research performed and presented within this study aims at assisting our clients answer this question.

A feasible business venture is one where the business will generate adequate cash-flow and profits, withstand the risks it will encounter, remain viable in the long-term, and meet the goals of the founders.

Wert-Berater, Inc.’s approach to completing a feasibility study is to develop with our multi-disciplinary team an evaluation of the physical aspects in regard to whether the project is legally permissible, to evaluate pertinent information regarding the economic aspects of the project, conduct extensive market research, assess technical and financial components, and review management related issues, as well. Of course, at Wert-Berater, Inc. we understand that every project is unique, which means diverse project needs will also be discussed and applied as necessary.

Contact Vince Lewis to discuss your project

Phone 702.752.8084 888.661.4449 x8

E-mail: vlewis@wert-berater.com