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Even in tighter market, craft brewers have room to grow

  • Brewmaster Nick Micio weighs out some pelletized hops at Saucony...

    Lauren A. Little

    Brewmaster Nick Micio weighs out some pelletized hops at Saucony Creek Craft Brewery + Gastropub Wednedsay. The slip said they grow their own hops. They do not grow their own hops. However, they do try to source them locally as much as possible. Photo by Lauren A. Little Saucony Creek Craft Brewery Hops 9/28/2016

  • At Saucony Creek Craft Brewery and Gastropub, Maxatanwy Township, brewmaster...

    Reading Eagle: Lauren A. Little

    At Saucony Creek Craft Brewery and Gastropub, Maxatanwy Township, brewmaster Nick Micio with some locally grown and harvested hops.

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For those who drink beer, it’s hard to imagine a better time.

But as consumers enjoy more styles of beer and more places to enjoy locally produced lagers and ales, craft brewers face more competition than ever.

The Keystone State is now home to 205 breweries, up from 88 in 2011, according to the Brewers Association, a trade group based in Colorado. Breweries ranging from Appalachian Brewing Co. to ZeroDay Brewing are aiming to satisfy your palate.

The craft beer boom has occurred across America. More than 5,200 breweries are operating nationwide, more than double the number five years ago.

Brewers who have established a foothold or are still trying to make their mark face greater challenges.

Bart Watson, the chief economist for the Brewers Association, said there is room for more breweries in the Keystone State. However, new breweries will have to find ways to stand out.

“They’re going to have to meet that quality bar,” Watson said. “That’s harder than ever before.”

As consumers have grown savvier about craft beer, brewers have been forced to innovate with new styles, said Chris Lampe, a co-owner of Weyerbacher Brewing Co., Easton.

“We make big, bold and aggressively flavored beers,” said Lampe, who is president of the Brewers of Pennsylvania. “We always wanted to be at the cutting edge of what the beer experience is.”

Now in its 22nd year in business, Weyerbacher stands as one of the veterans of the craft beer industry. But Weyerbacher has had to adapt as the market has matured.

“To remain on the cutting edge and doing what our mission started out to be, we have had to pay much stronger attention to our younger employees and what they are doing and what they are saying,” Lampe said.

Brewers can find opportunities if they are nimble and focused sharply on their local markets, Watson said.

Luke Wynen, general manager of Saucony Creek Brewing Co., Maxatawny Township, said he sees room for growth as more people desire locally sourced products.

“I think choosing local is a huge piece of the craft beer movement,” Wynen said. “I think that’s why so many breweries are popping up. People are getting excited about what they drink and eat. Where does it come from? Is it locally made?”

In recent years, Berks County has seen a spate of new breweries. Two breweries have opened in Berks in the past two years: Oakbrook Brewing Co., 628 Park Ave., and Hidden River Brewing Co., Union Township.

Berks County now has six licensed breweries, and a seventh, Schaylor Brewing Co., is expected to open in Cumru Township this fall. One brewery, The Other Farm, Boyertown, is closed for renovations, but the owners plan to reopen.

Just outside of Berks, Armstrong Alehouse is slated to open in Pottstown this fall.

Still, the growth in the craft beer industry has slowed in the past year. In 2016, the craft beer industry grew 6 percent. In past years, the industry regularly grew by double digits.

“Six percent growth is more of the new normal than the double-digit growth of the past,” Watson said.

Some craft brewers have faced hurdles in other parts of the country. Last fall, California-based Stone Brewing Co., one of the nation’s largest craft brewers, laid off 60 of its 1,200 workers. The Craft Brew Alliance, a Portland-based company whose brands include Redhook Brewing and Kona Brewing Co., laid off about a dozen workers, according to Brewbound, a website tracking the beer industry.

To succeed, brewers must pay attention to what their competitors are doing, Watson said.

While India Pale Ales remain the most popular craft beer style, Watson said new brewers may want to consider other styles if neighboring competitors are focused on IPAs. Watson said those looking to break into a hop-heavy market should offer styles such as stouts or Belgian-style beers.

As some craft beer lovers are getting older, “session” beers with lower alcohol levels, such as kolschs, pilsners and golden ales, are gaining popularity, Watson said.

Even with a more competitive market, Watson sees a strong industry and more opportunities for craft brewers to grow and thrive.

“There are challenges, but there is also a whole bunch of dedicated and innovative entrepreneurs out there who will find ways forward,” Watson said.