Oregon Public Broadcasting

The annual Craft Brewers Conference began Wednesday in Boston.

The craft brewing industry raked in $6 billion in revenue last year.

As one would expect from ‘Beervana’, Portland and Oregon sent a sizable group to the event.

But despite the frothy beverages, all was not a party at the conference.

Ethan Lindsey reports.

The Brewers Association is a trade group representing small and craft brewers across the country.

The group braced for cutbacks. Organizers expected fewer attendees at the annual conference this year –instead, a record number of more than 2000 showed up.

Paul Gatza is the director.

Paul Gatza: “Yeah, there’s 950 cases of beer and a large number of kegs here to help with that networking. It should be quite the good event the next few days.”

Brewers in Oregon say the total economic impact of the industry was almost $2 billion  in the state – and craft brewers employ 25,000 people.

But the national meetings are taking place as dark clouds loom. The recession and a slowdown in consumer spending is one fear.

Plus, continued growth in the microbrewery industry and new products from big breweries, like Budweiser, have created a more competitive market.

More than 100 new brewpubs and microbrewers opened in the U-S in 2008 – and the same time, more than 50 were forced out of business.

Gatza says one growth market is catering to high-end diners who normally order wine or liquor.

Paul Gatza: “I’m still optimistic for the craft brewing industry, because a lot of people are moving over from wine and spirits right now. People aren’t buying the full bottle of wine in restaurants anymore.”

And another challenge is a move by state and local governments to soften their budget deficits by raising taxes. 30 states have proposed new taxes on beer.

Paul Gatza: “The one in Oregon is the most egregious we’ve heard.” 

Portland Democratic Representative Ben Cannon sponsored the beer tax measure – his office says he remains committed to “protecting” Oregon's small brewers but because of the budget crisis, all sorts of new taxes must be proposed.

But Oregon’s microbrewers say the investment and growth of the beer industry could slow in the state if the proposed tax is passed.