By Katie Allie
If you’ve been out to eat or drink in West Virginia in the past year, you’ve likely noticed the sudden influx of craft beer taps at the bar. Across the United States, small craft breweries are gaining in popularity and revenue, and West Virginia is no exception. For a small state, West Virginia has about a dozen craft breweries already, and that number continues to climb as lawmakers work to enable breweries to more widely and cost effectively distribute their products.
Building an Industry
According to the Brewers Association, in 2014 the craft beer industry in the United States staked a $19.6 billion claim in the $101.5 billion overall U.S. beer market, which includes both domestic and imported beers. At the same time, Americans are becoming increasingly interested in purchasing products that support their local economy. Nationwide, states are opening their borders and doors to small businesses focused on craft beer and local tourism, and, to an increasing degree, they’re experiencing quite a bit of success. States like California, ranked first in the nation with 431 craft breweries as of 2014; Ohio, ranked 10th in the nation with 110 craft breweries; Pennsylvania, ranked seventh with 136 craft breweries, and Virginia, ranked 15th in the nation with 78 breweries, are experiencing millions of dollars in revenue coasting into their economies, all thanks to local entrepreneurialism.
The Brewers Association reports that the Mountain State was ranked 44th in 2014 with 11 craft breweries. This number has increased since then, though, and you don’t have to listen very hard to find brewers across the state who will tell you that despite outward appearances, things are, in fact, taking off.
According to Ryan Heastings of Charleston Brewing Company, while there are fewer breweries producing less beer in West Virginia, relative to population, the difference isn’t all that stark. Morgan Stemple, the marketing director at Morgantown Brewing Company, agrees.
“While the craft beer industry has taken longer to grow in West Virginia, I find it interesting that our state’s population is comparable to Pittsburgh’s, and we’re right behind them in terms of number of breweries,” Stemple explains. “This coming year we can expect there to be a total of around 15 or 16 West Virginia breweries.”
Industry Challenges
Brewers point to reasons other than statistics to account for the perceived slow start of craft beer brewing in West Virginia. Stemple points out that surrounding states have more progressive alcohol laws than the Mountain State, although West Virginia is slowly getting there. For Heastings, the single biggest reason for the slow growth is customer exposure.
In order for an out-of-state brewery to send their beer to be sold in West Virginia, there is a lot of time, effort and money involved—much more so than in some of the neighboring states and considerably more than that of a West Virginia brewery selling within the state.
“For many breweries,” Heastings explains, “it makes more economic sense to send beer to bigger markets at no additional regulatory cost than to try to open up a very small market with far-flung population centers at considerable extra cost.”
In a sense, this helps protect the precious small market for West Virginia brewers because with so little outside competition from breweries in other states, small, local breweries have had the chance to truly blossom. “My sense,” says Heastings, “is that we will see an increasing number of small breweries throughout the state over the next few years with an additional—albeit, relatively small—number of out-of-state producers sending product into West Virginia.”
Legislative Support
The wheels of the craft brewing industry in West Virginia are beginning to turn more quickly now, due in part to very recent changes in state alcohol laws. Legislation was passed in June 2015, tweaking existing laws and creating room for brewers around the state to breathe, although their work is far from finished. The revisions to existing laws and implementation of new regulations mean the road is being paved for new brewers to get their business up and running while allowing more established businesses to reach the wider audience they seek.
Some of the major laws that went into effect last year now allow breweries to provide complimentary samples to customers, give tours of distillery facilities, use a sliding scale for license fees based on production and, perhaps most notably, sell growlers. Growlers can also now be sold at off-premise retailers.
Charleston Brewing Company is already feeling the effects of the new laws. “We are seeing our wholesale orders pick up as other retailers are not only filling growlers in addition to selling pints but also new retailers are adding growler filling stations to their operations,” says Heastings.
This means that when you discover a beer that pairs perfectly with your meal, you don’t have to search for a six-pack or relent to only having it when you dine in. You can now fill a growler to bring home and enjoy or share with friends, remaining cost-effective for all parties and enabling brewers to gain exposure at the same time.
When it comes to the business aspect of the new legislation, Brian Arnett, co-owner of Mountain State Brewing and president of the West Virginia Craft Brewers Guild, focuses on the big picture. “Mountain State Brewing is large enough that we don’t get a break on licensing fees, but we fully supported the changes because it makes it easier for smaller guys to get going, and that’s what the craft beer revolution is all about,” he explains. “The more consumers start looking for local beers in West Virginia, the better it is for all brewers in West Virginia.”
Lincoln Wilkins, Jr., owner of Blackwater Brewing Company, says he sees a direct connection between West Virginia’s tourism industry and craft beer. “As tourism continues to grow,” he explains, “it’s attracting increased numbers of ecotourists and outdoor enthusiasts, two groups that have historically adopted and supported craft beer in other states with similar outdoor recreation opportunities.”
Team Effort
With all of these pieces fitting nicely into the puzzle, craft beer has the potential to really take off in West Virginia in the coming years. This is especially true as brewers and lawmakers work together to improve laws and support the industry. One way lawmakers and brewers are working together is through the formation of the West Virginia Craft Brewers Guild. The newly formed guild’s mission is:
- To provide a united voice for craft brewing in relation to legislative and regulatory environs within the state of West Virginia,
- To help consolidate and disseminate information regarding the art and craft of brewing itself among members brewing in both commercial and non-commercial settings and
- To promote West Virginia’s craft brewing industry both within and outside of West Virginia.
“The West Virginia Craft Brewers Guild was formed largely to react to legislation being passed that affects our industry,” says Arnett. “Everyone involved is building and growing a business—no brewer in West Virginia was handed a business from someone else. The time we have is minimal to protect ourselves. Right now, we mostly react to new legislation and try to make sure it doesn’t hurt us.”
Ask brewers what else could be done to support the state’s craft beer industry, and you’re likely to get similar answers. Wilkins discusses the fact that legislation only now seems to be catching up with how quickly the industry has grown. “Perhaps there has been a latency in the willingness and/or ability of the West Virginia regulatory structure to modernize in order to accommodate this rapidly expanding sector of the beer market,” he says. “I say that in the past tense, because I think this is changing.”
Indeed, change is filtering into the Mountain State’s craft beer industry. Instead of reaching for familiar names, residents are increasingly more willing to try new brews and are interested in supporting local businesses. Brewers and proprietors are working with lawmakers to create a more business-friendly environment for the burgeoning craft beer industry, and outdoor recreation opportunities in West Virginia abound, creating a unique partnership that helps drive tourism and exposure.
So the next time you find yourself faced with a mile-long list of beers on tap, reach for one brewed right here in West Virginia.
