Is California’s Water Storage Becoming an Issue for the Craft Beer Industry?

According to new data from the California Craft Brewer’s Association (CCBA), the craft beer industry’s contribution to California’s economy in 2014 was conservatively placed at $6.5 billion, providing a higher industry economic impact than to any other state in the nation. The size of the industry has permitted it to employ 48,00 Californians across the state.  This is all good news to residents seeking employment and to the state coffers which derives tax and fee revenues from the products.

However, a large majority of California possesses an arid climate, the state frequently finds itself facing drought conditions.  With breweries running an average of four to seven gallons of water to end up with one gallon of beer, breweries find themselves scrambling to identify usable water.

California is currently home to more than 400 craft brewers — the most in the country. Small brewers worry that they could have trouble meeting growing demand with the state’s limited water. Prices could go up, they warn, if they have to spend for conservation measures or scrounge up new supplies.  Increasing prices to meet their needs could drive this now thriving business into desperate times.

One California brewer, Lagunitas, recently opened a major brewhouse in Chicago, where Lake Michigan stands ready to supply its water needs. The company believes their next plant will probably be out of state and next to a stable water supply. Water is behind craft brewing behemoths such as Sierra Nevada and New Belgium opened plants in Asheville, North Carolina.

In the past two years, Lagunitas cut water use 10%. Recently, Lagunitas has had to blend in some well water, and executives are concerned that water officials might require the brewer to switch completely. Craft brewers attempting to use well water, which is heavy with minerals, brews could change in color and taste. Grainy and hoppy styles could taste more astringent. While Lagunitas invested in a new filtration system, which might eliminate odd groundwater tastes, some of the smallest brewers can’t afford such expensive changes.

 

Without investment in additional storage to capture run-off rain-water in the wet times.  Craft brewing could be yet another industry to face relocation out of the state. California would lose, jobs, revenues, and the uniqueness that these brewers bring to their craft.