Britain reportedly has more breweries per capita than any other country in the world now, according to the Good Beer Guide 2015 from the Campaign for Real Ale (CAMRA).  At 1285, the country’s brewery count grew 13% last yr with opening of another 170 breweries, the second yr in a row it posted double-digit growth.  As in the US, different groups count differently: the British Beer and Pub Assn counted 1442 breweries in 2013, according to the Financial Times.  CAMRA’s publication “portrays a British brewing industry in excellent health,” managing director of Society for Independent Brewers, a separate org, said in release, with stats “that would have been almost unimaginable to readers of this guide in the 1970s.”  CAMRA notes this puts total brewery count at its highest level since the 1930s-40s, with growth showing up in every region of the country.  Helping this trend is increased interest in cask-conditioned real ale among younger drinkers, per CAMRA.  About 30% of 18-24 yr-olds have tried real ale and would drink it again, the group found.  Meanwhile, just under 30% of all real ale drinkers are between the ages of 18 and 34.  US craft brewers have already noticed changes in UK drinking culture, as the Fort Collins Coloradoan picked up.  Recall, Left Hand just re-launched in Britain after leaving the mkt a couple of years ago.  Some British pub owners have turned to US craft to differentiate.

That’s as per capita consumption of alcohol has declined in the UK: it dropped another 1.7% there last yr, “leaving the UK’s alcohol consumption level lower than in 1990,” per the FT report.  While volume dipped, dollar sales kept growing since “consumers are drinking less, but...higher-quality,” ceo of Spirit Pub Co told the paper.  Brits continue to drink more off-premise than on too, a massive switch for a country that had almost 70K pubs in 1982, according to BBPA.  That’s shrunk to 48K, another 1400 closing last yr.  Good Beer Guide editor Roger Protz pegs weekly pub closures at 31.  

Price plays into the consumer shift to drinking at home rather than going out, a Canadean report released late last week reveals.  Just over half of UK adults find pub-drinking “too expensive,” but more craft beer options could help lure drinkers out of their homes.  While 24% of all adults told Canadean that lower prices in pubs and restaurants “would make them more likely to go out,” that number jumps to 55% for adults 18-24. Meanwhile, 15% of respondents said “specialty beers,” like craft, “would give them a reason to drink out more.”  About half as many said the same of alcopops (like FMBs in the US, but taxed/regulated like spirits in the UK, not malt beverages as they are here), proof to researchers of “the decline of alcopops and the rise of specialised craft beers.”  

Good Beer Guide highlights work of comparatively small cask-focused brewers on strengthening pub business. The org highlighted Project William, an £11.5-mil plan from Everards (Brewing) to partner with smaller breweries to renovate and run pubs.  Recall, most British pubs are tied to breweries; Everards runs 170, per CAMRA release.  But it’s also re-opened 28 pubs that had been struggling, renovated and leased them to smaller breweries.  Currently, 10 other breweries operate the pubs where they typically sell their full line alongside some Everards offerings.  Another pub is already slated for 2015 re-opening.  Another version of big-craft helping small-craft: BrewDog’s “new brewery investment fund” reported by The Guardian last month.  The Scottish brewery picked up a £50K stake in smaller Brewery By Numbers.

Easy to point to clear regulatory differences, and therefore biz structure, between US, Canada and Mexico when explaining disparity between number and size of craft breweries across North America.  It may not capture entire picture, but differences in beer distribution (no separate tier) and retail (at least partly, in some cases largely, controlled by brewers or co’s with common ownership) goes a long way to show how US neighbors haven’t enjoyed totally parallel growth in craft segment.  But small brewers in both nations continue to push thru obstacles and carve out space in these marketplaces, likely indicating the strength of the cultural shifts also supporting craft.

Ontario System Ridiculed, Defended, But Still Little Clarity on Path to Change  Critics once again blasted Ontario’s liquor control and retail systems this summer in form of study from CD Howe Institute and ensuing, damning, press.  Study rehashed many familiar arguments against current operations of Liquor Control Board of Ontario and presented familiar set of recommendations for changes, essentially “freeing up alcoholic beverage retailing.”  Allowing beer and wine sales in outlets not controlled by suppliers, at least to grocery and c-stores, will “increase the choices available and reduce prices for Ontario consumers, as well as improve the competitiveness of Ontario’s smaller wineries and breweries and generate more revenue for the government,” the study asserts.  But it got quick response from Canada’s National Brewers, org representing ABI, Molson Coors and Sleeman (owned by Sapporo), calling foul, pointing to conflicts of interest for the study’s authors and countering some of its claims.  Those 3 breweries control The Beer Store, which in turn controls 77.5% of all beer sales in the province, according to the study, with all remaining sales directly from LCBO stores, and for years smaller brewers have complained about the difficulty of getting facings there.

“The strength of the LCBO model is in a balance between customer convenience and selling alcohol in a socially responsible manner,” the board’s spokesperson told the Windsor Star.  While some consumers might argue the “convenience” point, they’re often quick to forget the “socially responsible” one.  Indeed, “liberalization is fraught with uncertainty,” as the Ottawa Citizen wrote before trying to poke holes in the board’s argument.  “The LCBO is very keen on having people buy alcohol,” the paper claimed, noting that “it advertises” and contending that “Ontario’s multibillion-dollar alcohol retailer is not a temperance organization.”  The uncertainty and conflicting data points marking this debate remind us of plenty parallel ones stateside, in and out of the beer space: pot legalization, anyone?

Yet Small Brewers Still Finding Growth Across Canada  Just before the study appeared, Ontarians celebrated debut of small Dominion City Brewing, already planning on expanding capacity and Quebecois celebrated their first shipments of popular Ottawa brewery Beau’s All Natural Brewing, already available in NY.  Interestingly, to begin selling in the neighboring province, Beau’s “hired a consultant,” essentially creating an importer/distributor for Quebec sales, according to the Ottawa Citizen.  Out west, small British Columbia brewers posted 60% sales growth for 3 mos thru Jun 30, to just under 7 share of the province’s beer dollars, per B.C. Liquor Distribution Branch stats reported by the Vancouver Sun.  Observers point to many of the same trends visible in the US: fast growth in the brewery count (10 more in the province just in the first half of the yr), availability of equipment and ingredients, “evolving tastes” and “the local factor.” 

Mexican Microbrewers Still Tiny, But Growing Quickly, Facing Strong Opposition  “Microbreweries account for less than one percent” of the Mexican beer market, an Al Jazeera report estimated late last month, but “their combined market share is growing rapidly by 50 to 60 percent a year.”  Just last yr, small brewers succeeded in convincing the government to limit the use of exclusivity contracts with retailers by the nation’s two largest brewers (Grupo Modelo, now owned by ABI, and Cuauhtemoc-Moctezuma, owned by Heineken).  SABMiller joined the fray with largest Mexican micro, Minerva, “to file a complaint” against the contracts, per Al Jazeera, about 3.5 yrs before decision to limit exclusivity clauses to a quarter of contracts with bars and restaurants.  But c-stores remain just as challenging as before, the paper claims, citing common ownership of C-M and 11K-outlet OXXO (which reportedly has had trouble entering the US market for the same reasons).  Small brewers currently seek tax reform to help lower costs, including prices to consumers at 2-3X those of wider-distributed brands.  But still, in about 10 yrs, Minerva has grown to near 50 employees and over 9000 bbls last yr, expecting 36% growth to closer to 13K bbls this yr.  Beer festivals and small brewer-focused bars are popping up in Guadalajara and Mexico City.  Minerva has been conducting workshops for enthusiasts as “a means of democratizing knowledge” and establishing “a stronger beer culture” in Mexico, per report.

Whole Foods will officially open its 1^st brewpub at newest Houston location this Nov 6, operating under separate name, Whole Foods Market Brewing Co, reported Houston Chronicle.  Recall, Whole Foods separately announced plans to open brewpub in San Jose, Calif a couple years back, but that project hasn’t moved along as quickly. Brewhouse has capacity to produce 400-500 bbls annually, and already “expects to be at capacity within a year,” sez Brewmaster Dave Ohmer, tho will have room to expand “by adding taller fermentation tanks.”  Whole Foods plans to eventually partner with a wholesaler to have beers distributed to other stores, “potentially including competitors,” sez paper, tho also has the option to stick to its other locations nearby; 19 bars across the southwest region, including 4 other locations in Houston area, sell approx “17,000 pints across the bar each week,” reportedly.  “The success of those bars helped make a convincing case for the brewpub” as a “logical next step,” specialty coordinator for the southwest region, Karma Clark told paper.  Co “will feature 20 beer taps, eight to 10 of which will be reserved for ales and lagers brewed on-site” at the 40 seat bar. 

“We’re right where we want to be” on 2d brewery in Asheville, newly-appointed prexy Christine Perich told CBN, just after adding “construction and integration” of that project to her long list of responsibilities.  Brewery on schedule to come on line in late 2015.  In meantime, when New Belgium “put the pedal down” in Fort Collins, it discovered that brewery’s ultimate capacity is close to 1 mil bbls. That’s considerably more than then previous 925,000 bbls it had estimated.  As result, there isn’t the production bottleneck that might have been anticipated with 30% growth in 1^st half.  NBB has been able to keep pace with demand, tho it did put expansions to KY and HI on hold until 2015.

Christine previously held role of cfo for last 10 yrs and chief oper officer for last 4.  Her first associations with NBB came as a cpa who was an outside auditor of co, then she came on as NBB’s controller 14 yrs ago, gradually adding to her responsibilities in the co ever since.  From her “core financial focus,” Christine has gradually broadened her basic biz knowledge “chunk by chunk,” she said, becoming familiar first with manufacturing process, then the overall biz, “what makes it tick.”  NBB takes a “crossfunctional” approach, so she’s developed awareness of many aspects of biz.  She’s also worked closely with co-founder Kim Jordan, who as ceo, is “focusing on branding, sales, industry affairs and the company’s strategy.”  New Belgium’s new cfo is Danielle McLarnon, who has been with co for over 10 yrs, most recently as Director of Finance and Accounting.  Next week, NBB will hold its distrib meetings.  Christine has gotten to know distribs over the yrs, but in her new role, she said: “I hope to spend more of my time there.”  She has a lot on her plate. 

Total craft variety packs continue to grow at even faster clip in 2014 scans, reported Denver Post, diggin’ into both nation-wide and local Colo trends.  Latest data shows total Variety Pk volume up 21% thru Aug 10 in IRI MULC, compared to 19% growth in 2013, paper points out.  CBN notes that’s despite lead brand, Sam Adams Variety Pk, down 9% yr-to-date.  But volume that Sam variety pk shed this yr, New Belgium Variety Pk (+71%) more than made up, seeing major sales boost from new offering in cans.  Sierra Nevada’s new variety pk is other main growth engine for variety pks, and the 2^nd largest craft brand intro this yr behind Sam Adams Rebel IPA (see Aug 28 CBN).  Recall, Sierra Variety Pk numbers got extra lift during latest period with Beer Camp Across America mix pack release.  Eric Rode, head brewer at Tommyknocker Brewing, suggested to Denver Post that “‘co-op’ sampler packs featuring beers from multiple breweries” could be another burgeoning trend for variety pks.  But hard to imagine many breweries capable and/or willing to do anything quite as wild (and logistically difficult from production standpoint) as Sierra’s 12 different beers with 12 different breweries.

Meanwhile, in Colorado variety pk trend even better at +42%, as a coupla top local cos reporting strong growth numbers nationwide, and a handful of others mixin’ up their mix packs: NBB (see above), Left Hand variety pk up 23%, and Fort Collins Brewery variety pk now “brewery’s third best seller,” paper noted.  Ska Brewing has moved away from new beers in bottles, and discontinued its variety 12 pk in bottles last yr to focus on variety pk in cans (intro’d back in 2009).  “With a brewery opening every week in Colorado alone, shelf space is going to become more of a commodity than it already is,” Ska Brewing co-founder Dave Thibodeau told paper.  Dave feels “twelve packs, although great for the consumer, take up a lot of shelf space,” and suggests breweries may start lookin’ into “more sampler 6-packs, or focusing on specialty beers or limited samplers.” 

Great Divide is example of brewery that had already “introduced a second [specialty] sampler pack,” with only high-end, high-ABV brews; it runs “$25-26 per 12-pack” at retail.  Sales “are growing rapidly,” tho “growth has slowed a bit this year with all the new variety packs on the market,” marketing director Anna Nasady told paper.  Some breweries are using variety packs “to give new or experimental beers a test run,” like Odell’s Loose Leaf, and Upslope’s Thai Style White IPA.  Also, more breweries “offering certain style themes in variety packs, grouping together beers that are hoppy, light, or just plain weird,” NBB sales director, Joe Menetre added.  Whichever way, “it’s safe to say variety packs are an exciting package for both beer beginners and more knowledgeable craft consumers,” sez chief economist of Brewers Assn, Bart Watson.  

Rumors swirled over the weekend and into this week suggesting more global brewer consolidation to come.  Naturally, discussion eventually turned to the impact any major deals would have on the fast-growing craft segment.  We don’t often broaden our view beyond the US in Craft Brew News, but these questions and plenty of recent stories from abroad shed light on small brewer biz here.  So let’s go global today.  See below for more on international craft.

A Quick Recap: Heineken Rebuffs SABMiller, More ABI-SAB Questions  SABMiller (majority owner of US brewer MillerCoors) made an offer to Heineken, which the Dutch family-controlled co rebuffed last weekend.  Heineken called the proposal “non-actionable.”  Folks speculated the bid represented an attempt by SABMiller to become as expensive as possible or ward off altogether an oft-discussed takeover bid by largest global brewer AB InBev.  That set off another round of speculation about an ABI-SAB deal.  Dueling reports citing anonymous sources claimed either ABI had gone to its banks to secure funding or hadn’t had those conversations at all.  The former sources pegged it as a $122 bil deal.  Onslaught of analyst/media reports indicate huge interest in prospect of this deal, and most signs point to some development, even if specifics unclear.  (See sister-pub INSIGHTS Express for much deeper coverage.)

So What? Craft, Distrib Acquisitions Likely Bigger Impacts Than Global Deal  Even if ABI-SAB materializes, it could be no big deal for US craft brewers.  Or so Brooklyn co-founder Steve Hindy told Bloomberg TV yesterday.  “I don’t think this mega-merger is gonna have much impact on craft brewers,” Steve said before wondering “is this good for beer?”  He took oppy to note big volume losses sustained by “duopoly” over last 5 yrs in US and corrected interviewer’s suggestion that “they make that up by buying smaller breweries.”  Not so, said Steve, exactly the sentiment expressed yesterday by the NYTimes: “acquiring even the biggest craft brands, like Samuel Adams or Sierra Nevada, would barely impact sales at a company as big as” ABI.  (Well, Sam Adams clearly would.)

“You have to battle every day” against a slew of “big brewery fake-o craft beers,” the Bloomberg anchor reminded Steve, naming usual suspects.  “Shouldn’t there be a law,” and “isn’t it almost devious,” anchor wondered.  Yikes.  Seems media has taken over calls of “crafty,” cuz Steve downplayed it as just “competition.  You’ve got to expect the big guys to want to get into our segment, but I don’t think they can dominate our segment,” he said.  Interestingly, the Times again took a similar tack.  “Despite strong distribution systems,” larger “companies have struggled to compete with small craft brewers,” the paper wrote.

In addition to adding smaller breweries, ABI has invested in adding distrib branches, Steve countered when one of Bloomberg’s interviewers suggested that the “open distribution system” in the US has helped the number of small breweries grow so quickly.  While that’s true, Steve said, consolidation has come to the distribution tier too, and “Anheuser Busch in particular is out to control that distribution system, so they’re buying distributors in every state that they can do so,” he claimed.  Tho craft acquisitions may not “move the needle for AB InBev,” as Demeter Group analyst Mark Levit told the Times, they could still happen.  Rumblings continue apace as AB has worked to tell the story that being bought is not a bad thing, like in recent coverage citing benefits felt by Goose Island from AB’s Elk Mountain hop farm.

A pair of adjustments to brewery/brewpub licenses sit atop list of legislative asks from the West Virginia Craft Brewers Guild, even ahead of more-common proposals to allow on-site tastings/sales and franchise reform.  The guild presented its wish list to the Joint Committee on Economic Development this week, claiming changes would help bolster growth for small brewers, per West Virginia Public Broadcasting report.  Top of mind is streamlining licensing so it’s “not such a burdensome financial amount on the breweries that are starting up,” Lincoln Wilkins of Blackwater Brewing told lawmakers.  That could come in the form of collapsing brewery and additional brewpub licenses into one and/or creating licensing cost structure that goes up with volume.  Another WVa-specific issue: reforming state labelling and mandatory ABV analysis, which currently requires new brands to be tested by a certified laboratory (out of state) and new labels to be approved by the state on top of federal requirements.  The process can take up to 60 days, Lincoln claimed.  The guild seeks some familiar rights too, such as tastings on-site and sales for off-premise consumption as well as franchise reform, natch. Franchise laws “hurt small, in-state brewers by not allowing brewers legal recourse to end agreements,” WVPB wrote.  Both a state ABC official and Phillip Reale of the West Va Beer and Wine Wholesalers Assn reminded legislators about 3-tier ideals, warning of dangers in tampering with that system.  Streamlining licenses is one thing, Phillip said, but when changing alc bev laws “you have to be really careful that you don’t disrupt the control.”  

Down in Georgia, the team of legislators tasked with analyzing the state’s alc bev code found at least a few discrepancies or “outdated provisions,” as Business in Savannah wrote.  Make that 122 of them, all in, including references that don’t match, laws that haven’t been acted on or enforced for decades or defining only “malt beverages” but not “beer.”  A House of Representatives study committee brought together state trade assns on Weds “to suggest other needed revisions,” but “too many edits could bog down the entire process,” per report.  No kidding.  But committee chair Rep. Howard Maxwell already figured out that much, noting that “I think we’re going to have to bite it off one piece at a time and not try to take a massive undertaking.”

“Smaller, independent brands, such as our members, stand to be shut out of the market if the world’s largest beer manufacturer is allowed to control its own distribution.”  So argued the Kentucky Guild of Brewers (KGB) in letter to Ky ABC and Owensboro ABC administrators protesting AB application for license to run 2d branch in state.  Owensboro admin has already cleared AB application but state has not acted.  KGB letter is appeal of Owensboro decision to allow license in addition to protest at state level. 

KGB, which represents 15 in-state brewers that produced about 53K bbls in toto last yr (AB sold over 1.2 mil bbls in state), joined Country Boy Brewing, which filed separate letter (see Aug 22 Craft Brew News) and most of the state’s wine/liquor and beer distribs, NBWA and other natl assns.  Like the other protesters, KGB said a second AB branch would reduce access to market, inevitably causing some small brewers to “disappear.”  AB has over 50 share in Ky, according to industry estimates, combined Louisville (where AB already has branch) and Owensboro territory holds about 1/4 of state population and “six competing wholesalers that sell MC brands, including one in Owensboro, are commonly owned so that substantial control of beer distribution throughout the state is in the hands of two large distributors.”  Mkt reality is that in most of state, “only two choices exist” for craft brewers, KGB adds, and allowing a dominant brewer to control its own distribution “could force all other brewers from that system,” leaving them with “just a single” option in many mkts.   State ABC “should protect competition against such a massive constraint on market access,” Guild urges. 

For further support – and distribs relying on this point as well – KGB points to recent action by state legislature that reflects its intention to limit cross-tier ownerships.  One recent change to state laws “expressly prohibits” Ky brewers from self-distribution.  Language is strong: “A microbrewery license shall not be incompatible with any other license except for a distributor’s license…and [n]othing in this section shall be construed to vitiate the policy of this Commonwealth…supporting an orderly three (3) tier system… (emphasis added).”   Makes no sense, KGB concludes, to allow biggest global brewer to self-distribute while barring small in-state brewers from doing so.  Click here to read entire letter.     

New Belgium yesterday promoted longtime cfo and chief operating officer Christine Perich to president. She started as cfo in 2004 and “has overseen all aspects of operations since 2009,” sez NBB.  She was guiding force behind 2d ESOP transaction, which bought out NBB co-founder and ceo Kim Jordan, and made NBB 100% employee-owned.  Christine “will now have oversight of all day-to-day operations” including building out its 2d brewery in Asheville.  Kim will remain as ceo “focusing on branding, sales, industry affairs and the company’s strategy.” 

NBB still up a striking 38.2% yr-to-date thru Aug 10 in IRI multi-outlet +convenience.  It “slowed” to 27.5% last 4 weeks.  New Belgium had been up about 30% all-channels in 1^st half, but it does not have capacity to sustain that kind of growth. It has put hold on expansions to Ky and HI, originally expected later in 2014.  Recently, some distribs have talked of slower trends for NBB again.  But overall, its growth is strong.   

CBN caught up with just-named CEO for Brewers Assn Bob Pease for wide ranging discussion on his new role (moving up from COO), BA initiatives going forward and current/future state of craft land.  Bob’s new title “formalizes” role he’s been playing in admin, govt affairs, export development and oversight of BA operations, so “day to day there’s not a whole lot changing for me or others who work here,” Bob told us.  Praised his “great team” and “key staffers,” many of whom are long term.  Bob will become “primary point person” with other industry assns, a role he previously shared with prexy Charlie Papazian.  But Charlie will continue to play valuable role given his “vision” and work as “beer ambassador…. When Charlie walks into a small brewery, it’s a big deal.  When I walk in, I’m lucky to get a beer,” he added.  But don’t let Bob’s low-key approach fool you; he’s been key figure in expanding BA’s scope and influence over last 2 decades.     

BA staff/committees presented preliminary plans/budget (in $20 mil range) for 2015 at early Sep board mtg.  Final plans go to board in Dec when votes will be taken.  Expect some “new big ticket items” in both of the key areas that BA provides members – to “promote” and “protect” craft beer and craft brewers – said Bob, while declining to give specifics.  Given long history of GABF, other events, education and outreach, “promote” aspect more developed, Bob said.  BA plans further outreach to supplier groups like hops growers and “more robust technical suite of resources to provide more value for members,” an initiative being advocated by technical committee.  On less developed “protect” side, Bob noted BA has been “pretty effective over the last 3-4 years establishing a presence and reputation on Capitol Hill” via efforts to pass Small BREW Act, which he called a “galvanizing issue [for members] to rally around.”  When effort started back in 2009, “idea of coming to DC” for most members was “foreign at best,” but “number of members who now have relationships with federal officials has increased 50-fold.”  Bob alone has been in “hundreds of offices” on the Hill, including those in leadership positions on key Senate Finance and House and Way Committees.  These relations helped, he said, when “spent grain issue blew up and we had offices contacting us saying ‘we want to help.’ That would not have happened 3-4 years ago.”      

No Deal for Now between BA and BI on Compromise Tax Bill, But BA Remains “Open” to Seek One Speaking of Small BREW, Bob had no comment on recent developments there.  Turns out BA and Beer Inst recently hit a wall on proposed compromise between big and small brewers on single tax reform bill that reportedly gave relief to all brewers, avoided 6-mil-bbl defn roadblock.  Deal had been in works, but following recent BA board mtg, craft brewers backed off with one source telling us “tea party” wing of BA unwilling and uninterested in unifying with big brewers.  Another key stumbling block is how to deal with import brands, big and small.   Bob told CBN: “BA remains open to identifying any possible compromise in the future.”  And while no small brewer currently on BI board, there will be, we’re told.  Perhaps that can re-open path for compromise.  Then again, could be that small brewers’ strong interest, perhaps even “necessity” in Jim Koch’s view, in distinguishing themselves from big brewers will prevent any handholding on the Hill.  We’ll see.

On equally touchy issue of franchise reform/carve-out legislation at state level, Bob assured that “remains a top priority with BA.”  Again, Bob did not reveal details.  But other sources tell us to expect numerous states to take up issue again in next yr’s legislative sessions, including key Pennsy and Mass chambers, states where two biggest small brewers, Boston Beer and Yuengling, have the most influence.  Turns out too that key sponsor of Mass franchise reform is next door neighbor of Harpoon’s Dan Kenary, Beer Distribs of Mass prexy Bill Kelley told CAP mtg recently.

CBC Logistics an “Increasingly Significant Challenge”: But Portland has Plusses Too  While BA has become expert of hosting big events, i.e. GABF, incredible growth of annual Craft Brew Conference is “becoming an increasingly significant challenge,” Bob allowed.  CBC will be in craft mecca Portland, OR next yr.  Portland Convention Center actually allows more space for exhibitors than Denver last yr and 425 already signed up, Bob said.  There will be extra half-day for trade-show only visits.  Convention center also “great” for seminar portion of CBC.  Issue for CBC at current size is finding big enough space for opening reception and general session to accommodate 6K or more people.  Next yr, Portland’s Veteran Memorial Coliseum will be “better” than Denver’s Mile High, said Bob, as busses won’t be needed to get there.  Hotel-wise, no single spot will be “host,” but BA has already contracted for room blocks in 20 hotels.         

Lookin’ Ahead, No Sign of Craft Slowdown, But BA Staff Keeps “Finger on the Pulse”  Bob and other key members of BA staff witnessed late-90’s craft “shakeout,” he reminded: “We remember and … have spent a lot of time talking about that internally.  We have our finger on the pulse” to make sure BA “not slow to react or address [any] slowdown or downturns.”  Nothing on immediate horizon to suggest that given current growth trends, rate of openings (over 1/day) and closings (not accelerating).  Then too, he points to 30 share craft now has in Oreg, and growing.  So Bob “very confident, but not overconfident” in BA’s stated goal of 20 share by 2020.  Bob and BA staff keeping close eye on key access to mkt, distrib consolidation and maintaining craft quality issues, all ongoing, potential “threats and challenges we talk about.”