There’s no question about it; a craft beer craze is gripping North America. Get ready for some numbers.
In 2016, the number of craft breweries in the U.S. stood at 5,234, up 16.2% from the year before. This figure meant that craft breweries accounted for an enormous 98.74% of all breweries in the country. It’s a similar story in Canada, where an explosion of breweries has occurred. According to data gathered by Beer Canada and Maclean’s, the number of breweries in the country more than doubled from 2008 to 2015, and went on to reach a record high of 775 the year after that.
That’s a lot to take in, but it highlights the point. Such is the spread of the craft craze that government tax breaks and community subsidies are being gifted to small breweries. We sure have come a long way from Prohibition. These days, it seems like nearly everyone wants to get involved with brewing in one way or another. And as an investor, why should you be any different? Well, not so fast. Here are some small-cap publicly-traded craft breweries you should be watching right now.
Brick Brewing Co. Limited (TSE:BRB)
Current price (CAD): $4.40 | 24-hr change: +0.80% | Year change: +53.3% | Market cap (CAD): $155.2M
Brick Brewing Co. is performing very well, and investors will have been delighted with last November’s performance which saw shares jump over 20% to the end of 2017. Presently, February is seeing a continued albeit rocky upward trend which has yielded their highest share price to date. The Kitchener, Ontario-based company also operates Waterloo brewing.
Craft Brew Alliance, Inc. (NASDAQ:BREW)
Current price (USD): $18.15 | 24-hr change: -1.89% | Year change: +22.97% | Market cap (USD): $353.1M
Craft Brew Alliance is a weird one, since mega-brewer Anheuser-Busch owns about a third of them. But it can’t be denied that the company have contributed lots towards the US beer market. Shares saw a price hike in early November following reports of a 3Q profit. Though performing strongly since this time last year, the brewery has had a very disappointing February culminating in today’s droop.
Image source: Kusaka
The Boston Beer Company, Inc. (NASDAQ:SAM)
Current price (USD): $164.52 | 24-hr change: -2.07% | Year change: +1.96% | Market cap (USD): $1.89B
Still technically a craft beer brewery, Boston Beer Company is the largest in the US. Despite its year increase, stocks are currently on a downward plunge of over -18% from the start of February, meaning it would be best to stand well back for now and wait for things to calm down.
Big Rock Brewery, Inc. (TSE:BR)
Current price (CAD): $5.70 | 24-hr change: -1.04% | Year change: -8.8% | Market cap (CAD): $39.79M
The only one on the list not to have grown over the past year, the Calgary-based Big Rock Brewery was actually showing signs of leveling out after a rocky 2017. Unfortunately it has suffered similarly to Boston Beer Company, undergoing a February plunge which marred the beginning of 2018. This seems to have halted for now, so investors may be hopeful for a rebound while prices are down.
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So while the craft beer explosion is certainly bound to be enticing for investors, don’t put your money in blindly. Although it is true that many companies are up from last year, 2018 has proved challenging thus far. In addition, the increasing legalization of cannabis could prove detrimental to large brewers, particularly in Canada, though it is unclear whether or not this will affect craft breweries as much. In any case, be wary, but certainly don’t ignore craft beer investments.
Featured image: Norwichinns
