2014Annual Report

PURPOSE The Washington Beer Commission was ratified by the Washington State Legislature on September 6, 2006 as an Agricultural Commodity Commission, becoming the first commodity commission for craft beer in the U.S.

Through RCW 15.89 the state granted the commission the opportunity to produce up to 12 beer tasting festivals per year and to use the proceeds to promote and market Washington’s craft breweries. An assessment of ten-cents per barrel produced by each brewery (with a cap assessment of $1,000) was also a part of the legislation.

Washington state now boasts 252 breweries and is still the only state in the nation with a beer commission.

Commissioners - 2014• Chairman - Allen Rhoades, Anacortes Brewery, Anacortes

• Secretary - Doug Hindman, Elliott Bay Brewing, Seattle/Burien

• Treasurer - Neil Fallon, American Brewing, Edmonds

• Mark Irvin, No-Li Brewhouse, Spokane

• Greg Parker, Iron Horse Brewery, Ellensburg

• Matt Lincecum, Fremont Brewing, Seattle

• Patrice Barrentine, Department of Agriculture representative

Past Commissioners2007George Hancock (Chairman) - Pyramid Brewing (resigned on November 13, 2007)Doug Hindman (Secretary) - Elliott Bay BrewingBob Maphet (Treasurer) - Diamond Knot BrewingMark Irvin - Northern Lights BrewingAllen Rhoades - Anacortes BrewingJeff Smiley - Baron BrewingDavid Mudd - WSDA

2008Allen Rhoades (Chairman) - Anacortes Brewing (elected Chairman January 28, 2008)Doug Hindman (Secretary) - Elliott Bay BrewingBob Maphet (Treasurer) - Diamond Knot BrewingMark Irvin - Northern Lights BrewingJeff Smiley - Baron BrewingGreg Parker - Iron Horse BreweryDavid Mudd - WSDA

2009Allen Rhoades (Chairman) - Anacortes Brewing Doug Hindman (Secretary) - Elliott Bay BrewingBob Maphet (Treasurer) - Diamond Knot Brewing (resigned November 10, 2009)Mark Irvin - Northern Lights BrewingJeff Smiley - Baron BrewingGreg Parker - Iron Horse BreweryDavid Mudd - WSDA

2010Allen Rhoades (Chairman) - Anacortes Brewing Doug Hindman (Secretary) - Elliott Bay BrewingJanelle Pritchard (Treasurer) - Snoqualmie Brewing (elected January 10, 2012)Mark Irvin - Northern Lights BrewingJeff Smiley - Baron Brewing (term expired October 31, 2010)Matt Lincecum - Fremont Brewing (term began November 1, 2010)Greg Parker - Iron Horse BreweryDavid Mudd - WSDA (resigned July 13, 2010)Jason Kelly - WSDA (started September 7, 2010)

2011Allen Rhoades (Chairman) - Anacortes Brewing Doug Hindman (Secretary) - Elliott Bay BrewingJanelle Pritchard (Treasurer) - Trade Route BrewingMark Irvin - Northern Lights BrewingMatt Lincecum - Fremont Brewing Greg Parker - Iron Horse BreweryJason Kelly - WSDA

2012Allen Rhoades (Chairman) - Anacortes BreweryDoug Hindman (Secretary) - Elliott Bay BrewingJanelle Pritchard (Treasurer) - Trade Route BrewingNeil Fallon (Treasurer) - American Brewing (term began November 2012)Mark Irvin - No-Li BrewhouseGreg Parker - Iron Horse BreweryMatt Lincecum - Fremont BrewingJason Kelly - WSDA Rebecca Elias - WSDA (term began November 2012)

2013Allen Rhoades (Chairman) - Anacortes BreweryDoug Hindman (Secretary) - Elliott Bay BrewingNeil Fallon (Treasurer) - American BrewingMark Irvin - No-Li BrewhouseGreg Parker - Iron Horse BreweryMatt Lincecum - Fremont BrewingRebecca Elias - WSDAPatrice Barrentine - WSDA (term began October 2013)

MISSIONTo promote Washington beer, benefit the state’s breweries, and increase awareness and demand.

VISION To be universally recognized as the preferred choice of beer drinkers everywhere, respected for quality and innovation.

Contract Staff• Eric Radovich, Executive Director• Matthew Russell, Director of Operations• Hayden Campbell, Marketing Manager/WABL

WHO WE AREFormed in September of 2006, the Washington Beer Commission is still the only commodity commission for beer in the United States. As an agricultural commodity commission, the beer commission also helps to educate the public and promote the state’s hops growing industry which produces 75% of the hops used to make beer in the United States.

2014 HIGHLIGHTSGrowth mode continues for Washington Beer as the state added nearly a craft brewery a week in 2014. In all, 48 new breweries opened their doors to further serve its craft beer loving consumers . The count of Washington state craft breweries climbed from 204 to 252, with little signs of slowing down heading toward 2015. Total barrel production topped 330,000 (or 660,000 kegs) not counting the craft beer produced by the state’s largest brewer, Redhook.

The Washington Beer Commission (WBC) is funded almost solely by proceeds from the production of beer tasting festivals and if not for the rain soaked Father’s Day weekend event in Redmond, this would have been another record setting year for attendance and income. As it was, the WBC set net earnings highs at its Belgianfest, Everett, and Spokane events, while rebounding it’s income in Bremerton.

The ninth annual Washington Brewers Festival (which takes place on Father’s Day weekend) started strong with an all-time high attendance on Friday night but got hit with threatening skies and sprinkles on Saturday and rain showers on Sunday. This accounted for a nearly $50,000 loss in revenue from the $193,000 net in 2013.

The good news is that the WBC was still well in the black financially and with its mission to promote Washington beer, carefully spent a new high of $75,000 in developing and implementing a marketing strategy designed to build a strong Washington Beer brand. These efforts included developing a comprehensive Strategic Communications Plan which will go a long way toward developing consistent, targeted messaging, and setting of spending priorities. Taking on the top priority, the WBC Marketing Committee is excited to announce the development of a dynamic new washingtonbeer.com web site which will launch in mid-February of 2015. Other highlights of the marketing campaign include improved communications technology for the WBC Commission meetings, a stronger business partnership with the Washington Beer Blog, another 60,000 Washington Brew-Ha! brochures, sponsorship of Seattle Beer Week (giving Washington beer events primary position), a research trip to the Milwaukee Brewfest, production of 120,000 Washington Beer bottle caps, and a highly visited booth in Denver, at the Great American Beer Festival.

OUR IMPACTOur Impact - The Washington state craft brewing industry contributes significantly to the economic vitality of our state. According to the latest reported numbers (compiled in November of 2013) by the Brewer’s Association (based in Denver, CO.), the state’s craft beer industry provided 13,148 full-time jobs and $443,572,000 of labor income in Washington state for 2012. The total economic impact for 2012 in Washington, as calculated by the Brewer’s Association economist, was slightly over 1 billion dollars at $1,006,558,000. Since that time Washington state has added more than 100 new craft breweries!

Washington’s breweries, many of them small and family owned, are integral parts of their local communities. When you choose to buy beer brewed in Washington, you support businesses that provide local jobs and contribute to the state’s tax base. Many of these breweries are also generous contributors to charitable organizations supporting a host of worthy causes statewide.

By working to build a cohesive Washington

Beer brand, we are seeing significant

growth in this dynamic beer market.

Washington state is now positioned

as a national leader in the industry,

with an impressive amount of brewery

openings, and continued success of

established breweries. The Washington Beer Commission

continues to foster a “community of

craft brewers”, and has established

itself as a one-of-a-kind brewery

marketing and event planning entity.

Allen RhoadesChairman of the Washington

Beer Commission

Facebook Likes1/1/2014 - 4,456

6/30/2014 - 5,10612/31/2014 - 5,573

Twitter Followers1/1/2014 - 5,534

6/30/2014 - 6,37012/31/2014 - 7,027

Instagram Followers1/1/2014 - 40

6/30/2014 - 24112/31/2014 - 534

WABL & Social MediaFestivalsThe Washington Beer Commission is proud to put on six beer tasting festivals around the state as a way to showcase many of the 252 craft breweries in Washington.

These beer tasting festivals are unique either to the season in which they take place or to the style of beers to be featured. Each of them boast at least 70 different Washington craft beers to choose from!

WABL stands for WAshington Beer Lovers. WABL’s mission is to build a community of local craft beer enthusiasts while pursuing an active, responsible, and social lifestyle built

around Washington beer. It’s a Washington Beer Fan Club!

Annual WABL Members Social Media Info

2010861

20111,143

20122,095

20133,087

20143,159

@WashingtonBeerWashingtonBeer washingtonbeer

Washingtonbeer.com – Visitors by Year

2011 – 265,9832012 – 433,3272013 – 523,3382014 – 641,160

Washington Beer CommissionProfit & Loss YTD Comparison

January 2010 through December 2014

Washington Beer CommissionBy the NumbersJanuary 2007 through December 2014

Washington Breweries

WBC Gross Revenue

Overall WBC Financials

Barrels of Beer Produced*

W.A.B.L. Members

*These numbers are total for all WA craft breweries excluding Redhook

PROCEEDS

ADDITIONAL PROCEEDS SPENT ON MKTG

Washington Beer CommissionProfit & Loss Budget vs. Actual - Washington Brewers Festival

January through December 2014

Washington Beer CommissionPercentage of Proceeds

2014

Washington Beer CommissionProfit & Loss Budget vs. Actual - OverallJanuary through December 2014

Assessments9%

WashingtonBrewers’ Festival

69%

Other TastingEvents

18%

1501 North 200th StreetSuite 111Shoreline, WA 98133

206.795.5510

washingtonbeer.com