The USA’s ground central for the craft beer industry continues to grow at a record rate, creating jobs, income, and tax revenue for America’s favourite city.

In a report published last week by California State University San Marcos and the San Diego Brewers Guild, it stated that the annual economic impact of the San Diego craft beer industry increased to a record-high of $1.17 billion in 2018. This figure is an increase of about 5.5 percent over 2017.

Local brewers are optimistic about future growth, too. In a survey conducted by CSU San Marcos, it found a confidence index of 91 among San Diego craft breweries (above 50 indicates a positive outlook). The vast majority of respondents indicated that in 2019 they intend to increase their overall production (91%), invest in capital equipment (82%), and hire more staff (76%).

While San Diego and its palm trees probably seems very far away from you, the implications of this report matters to all craft brewers.

First, it shows that craft breweries are good for villages, towns and cities by bringing in revenue and stimulating areas. In New York City, Brooklyn Brewery transformed the warehouse area around it to such a degree – bringing in other businesses and residents to an area seen as a blight – the Brewery can no longer afford to be there.

San Diego’s craft breweries have done much to transform communities such as North Park, South Park, and Normal Heights in a way no other businesses have.

If local councils are hesitant about granting you a license, point them towards this report.

In barren parts of the ocean, a single piece of flotsam can create an entire ecosystem. Craft breweries have proved to be the same.

Second, there are now 155 independently owned craft breweries operating in San Diego County at the end of 2018. This figure excludes breweries that are owned by large multinational corporations and therefore do not count as craft brewers according to the Brewers Association, the national craft beer trade organization.  

With some breweries having multiple taprooms, pubs, etc, under the same license, the number of craft beer operating locations is over 1,000.

When there were 50 craft breweries, it was said by many that 80 would be the maximum number of breweries the area could sustain – there are approximately 3 million people in San Diego County. Once the figure reached 80, the saturation point was seen as 100, and so on and so on.

According to Bill Vanderburgh of the Coast News Group, so far in 2019 seven new breweries and 12 new satellite tasting rooms have opened in San Diego County (four breweries and three tasting rooms have closed). Around 21 breweries that have announced plans to open by this time next year.

Even if just two-thirds of those plans come to fruition, that would be almost a 10 percent increase in the number of breweries in the county over the next 12 months, said Vanderburgh.

In California – which has 900 breweries – craft breweries seem to be the only business that competition may help with mutual success. You should see your fellow craft breweries in the same light.