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MANUFACTURING
Brewconomy 101
Craft beer has become big business in Montana, where the state’s manufacturing sector has enjoyed the largest gains
TBy TRISTAN SCOTT
he simple, thirst-slaking union of four basic ingredients – water, grain, hops, and yeast – has created a groundswell of economic activity in Montana, and the surging craft-beer indus-
try shows no signs of slowing.
Beer is as old as civilization, dating back to when
grain was first domesticated and borne of the discovery that moldy bread produced an odd sensation.
Since refined, brewing beer has become big business in Montana, and this month the industry celebrated its renaissance with the 2015 Montana Fall Brewers Fes- tival in Missoula, which featured a two-day conference and a keynote address from Gov. Steve Bullock, as well as a contest and tasting event showcasing more than 154 Montana-made beers, including 30 festival-re- leased brews from 42 breweries across the state and award-winning beers from the Flathead Valley.
Husband-wife duo Cole Schneider and Maggie Doherty, owners of the Kalispell Brewing Company in downtown Kalispell, took home two gold medals, win- ning the Best Dark Lager category for their Winter at Noon Dunkel and Best Light Lager for their Two Ski Brewski.
Down the road at Tamarack Brewing Co., co-owner Josh Townsley, who is president of the Montana Brew- ers Association, took home an award for Best Amber for the brewery’s Yardsale, and Best Double IPA for the Redemption Red, which also earned the Best of Show award.
And Tim Jacoby, head brewer at Flathead Brewing Co., won Best Belgian for the Swimmer’s Itch Saison.
The success of these small, local craft breweries is mirrored across the state and nationally. Last year, craft breweries produced 11 percent of the beer Americans bought, up from just 2.8 percent in 2004, according to the Brewers Association, a national trade group.
Montana’s craft brewing industry has more than dou- bled its workforce over the past four years, according to a study published by the University of Montana’s Bureau of Business and Economic Research, which relied on 2013 data, the most current figures available.
The number of people working for craft brewer- ies went from 231 in 2010 to more than 480 last year, according to research economist Colin Sorenson, who authored the study, which was commissioned by the Montana Brewers Association (MBA).
At the time, 40 breweries were in operation, with another 11 breweries in the planning phase. And with more than 60 breweries projected across the state by the end of 2015, the workforce will continue to increase
Head brewer Cole Schneider brews the Winter at Noon Dunkel at Kalispell Brewing Company. GREG LINDSTROM | FLATHEAD BEACON
exponentially.
“I’d say it’s a safe bet that the next study will show
closer to 1,000 direct jobs statewide,” Matt Leow, exec- utive director of the MBA, said.
Those direct jobs and income flowing from Mon- tana’s craft beer taps contribute to growth throughout the state’s economy, the study notes.
The report found that economic benefits include 673 additional permanent, year-round jobs; more than $18 million in income to Montana households; sales from businesses and organizations are $60 million higher; and tax and non-tax revenues, not including property taxes, were more than $4 million higher.
The study also found that the industry’s overall eco- nomic impact grew by about 20 percent over 2011 num- bers, reaching roughly $60 million in 2013.
And with brewing falling under the major industry heading of manufacturing, Montana’s manufactur- ing sector has enjoyed the largest output gain of $41.6 million due to craft brewing operations, according to Sorenson.
The sales of all kinds of Montana entities benefited from craft brewing, notably construction, as well as state and local government, retail trade, and health care,
according to the report.
The craft brewing industry is also spending more
money in Montana, Sorenson said. He surveyed about 50 brewers for the report and found that nearly half of their spending is done in state, spreading their dollars through the construction, retail and health care fields.
At Kalispell Brewing, Schneider and Doherty pur- chase Montana malted barley and Montana-grown hops. After opening their doors in 2014, they have already increased their fermentation capacity from 40 barrels to 100, increasing their production volume by 150 percent.
That farm-to-brew ethos has been adopted by other breweries in the region and the state as well.
“Brewers are a major economic impetus, and craft brewing is an industry that relies on other industries and props them up across the state,” Cole Schneider said.
Leow said the 2015 Montana Fall Brewers Festival was sponsored by 32 businesses, including distribu- tors, hop growers, attorneys, insurance companies, and others.
“It really highlights how many different industries are involved in craft brewing,” he said. “It’s not just about the beer. There are boiler and equipment manufacturers
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