NAICS 312120 Quarterly Industry Report
Breweries
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 312120Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 312120 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the brewery sector, drawing on data from the U.S. Census Bureau[5] and SBA lending records. Additional data is drawn from Bureau of Labor Statistics[8].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 312120 establishments, supporting buy-sell agreements, partnership dissolutions, SBA-financed acquisitions, and litigation support engagements.
Industry Snapshot
Key metrics for the breweries industry.
Industry Definition & Overview
Breweries (NAICS 312120) encompasses establishments primarily engaged in brewing beer, ale, lager, malt liquors, and nonalcoholic beer. The industry spans large-scale production facilities operated by multinational corporations to microbreweries and craft brewers producing limited batches with distinctive flavor profiles. According to the U.S. Census Bureau[5], over 5,000 active brewery establishments operate in the United States, employing more than 60,000 workers and generating tens of billions in annual shipment value.
The craft beer movement has reshaped the industry over the past two decades, creating opportunities for small producers to compete on product quality, local identity, and direct-to-consumer taproom experiences. Industry SBA Office of Advocacy[6] notes that craft breweries represent the vast majority of establishment counts despite commanding a smaller share of total volume, with many qualifying as small businesses under SBA size standards. Taproom revenue has become an increasingly important supplement to wholesale distribution for smaller brewers, providing higher margins and direct customer relationships.
Regulatory oversight involves federal licensing through the Alcohol and Tobacco Tax and Trade Bureau (TTB)[7], which administers brewing permits, labeling approvals, and excise tax compliance. State-level alcohol control boards impose additional licensing requirements, distribution rules, and direct-to-consumer shipping restrictions that vary widely by jurisdiction. The three-tier distribution system in most states requires brewers to sell through licensed distributors, though taproom sales and limited self-distribution exemptions provide alternatives for smaller producers.
What's Included in This Industry
- Valuation multiples benchmarked to breweries and craft beer producers
- Revenue and EBITDA trends for craft, regional, and large-scale breweries
- SBA lending data and financing terms for NAICS 312120
- Comparable transaction data from recent brewery M&A activity
- Industry risk factors including distributor dependency and regulatory costs
- Workforce composition and labor cost benchmarks for brewing operations
- Regional market concentration analysis across major brewing regions
- Revenue channel analysis covering wholesale, taproom, and direct-to-consumer
- Growth projections tied to craft beer premiumization trends
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Beverage and Tobacco Product Manufacturing | 312 |
| Industry Group | Beverage Manufacturing | 3121 |
| NAICS Industry | Breweries | 31212 |
| National Industry | Breweries | 312120 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 312130 | Wineries | Wineries sharing overlapping three-tier distribution systems, similar TTB licensing requirements, and competing for premium shelf space in retail alcohol channels |
| 312140 | Distilleries | Distilleries using comparable fermentation and production processes, sharing TTB regulatory frameworks, and competing for taproom and tasting room consumer spending |
| 312111 | Soft Drink Manufacturing | Soft drink manufacturers sharing canning and bottling equipment suppliers, overlapping retail distribution channels, and similar packaging logistics operations |
| 311213 | Malt Manufacturing | Malt manufacturing establishments supplying key brewing ingredients with direct supply chain relationships to breweries of all production scales |
| 424810 | Beer and Ale Merchant Wholesalers | Beer and ale merchant wholesalers serving as the primary distribution channel for breweries under three-tier alcohol distribution regulations |
| 312112 | Bottled Water Manufacturing | Bottled water manufacturers sharing canning and filling infrastructure, with some breweries producing branded water products as portfolio line extensions |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 10.8% | 560 |
| 2 | New York | 6.1% | 313 |
| 3 | Colorado | 5.2% | 266 |
| 4 | Washington | 5.1% | 262 |
| 5 | North Carolina | 5.0% | 259 |
| 6 | Pennsylvania | 4.7% | 244 |
| 7 | Florida | 4.4% | 227 |
| 8 | Texas | 4.0% | 209 |
| 9 | Ohio | 3.5% | 181 |
| 10 | Virginia | 3.5% | 178 |
% Of Establishments
0%
11%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
1,104
Total SBA Loans
$644.3M
Total Loan Volume
$584K
Average Loan Size
11 yrs
Average Loan Term
9.74%
Average Interest Rate
16,536
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Breweries seeking SBA financing typically qualify under the SBA size standards[9] for NAICS 312120, which set the threshold at 1,250 employees for small business classification. The SBA 7(a) loan program[10] provides up to $5 million for business acquisitions, brewing equipment upgrades, and taproom buildouts. Market CDC/504 loan program[11] offers long-term fixed-rate financing for facility expansion, canning line installations, and cold storage construction. Lenders evaluate taproom revenue stability, wholesale distribution contracts, and TTB licensing transferability when underwriting brewery transactions.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | Celtic Bank Corporation | 56 | $77.4M | $1.4M |
| 2 | Community Bank & Trust-West Georgia | 16 | $52.0M | $3.3M |
| 3 | Alaska Growth Capital BIDCO, Inc. | 8 | $40.0M | $5.0M |
| 4 | Live Oak Banking Company | 24 | $38.8M | $1.6M |
| 5 | 1st Security Bank of Washington | 16 | $29.2M | $1.8M |
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a brewery?
Brewery valuations typically range from 4x to 8x EBITDA for established operations, with craft breweries commanding premium multiples when they have strong brand recognition, loyal taproom customer bases, and growing distribution footprints. Smaller brewpubs may trade at 2.5x to 4x seller's discretionary earnings. Per U.S. Census Bureau[5] data, the wide variance in multiples reflects differences in taproom revenue mix, brand strength, and production scale.
What SBA loan options are available for acquiring a brewery?
The SBA 7(a) loan program[10] provides up to $5 million for brewery acquisitions and equipment purchases, while the CDC/504 program[11] finances facility improvements and major equipment like brew houses and canning lines. Lenders typically require TTB license transferability confirmation and assess taproom revenue stability before approving brewery loans.
How does taproom revenue affect brewery valuation?
Taproom sales generate gross margins of 70-85%, far exceeding the 30-45% margins on wholesale distribution. Breweries with strong taproom programs often command higher multiples because of their direct consumer relationships and reduced distributor dependency. Acquirers evaluate taproom traffic consistency, per-visit spend, and local market saturation when assessing taproom-driven revenue.
What regulatory requirements affect NAICS 312120 businesses?
Breweries must obtain federal permits from the Alcohol and Tobacco Tax and Trade Bureau (TTB)[7], comply with excise tax reporting, and secure label approvals for each product. State alcohol control boards impose additional licensing, reporting, and distribution requirements. Per FDA[12] regulations, breweries must also comply with allergen disclosure and nutritional labeling rules that are being phased in for alcoholic beverages.
What equipment is typically needed for a brewery?
Core brewing equipment includes mash tuns, brew kettles, fermentation tanks, bright tanks, heat exchangers, and cleaning-in-place systems. Packaging equipment such as canning lines, bottling systems, and kegging stations add further capital requirements. A mid-size craft brewery with 10,000-barrel annual capacity typically requires $1.5 million to $5 million in equipment depending on automation level.
What workforce challenges do breweries face?
Key workforce challenges include recruiting experienced brewers and cellar workers, managing seasonal production fluctuations, and staffing taproom service positions in competitive hospitality labor markets. Per Bureau of Labor Statistics[13] data, beverage manufacturing wages have risen as craft breweries compete with restaurants and bars for skilled workers in taproom and production roles.
How does distribution strategy affect brewery value?
Distribution reach directly affects revenue scale and business value. Breweries with multi-state distribution agreements and strong distributor relationships demonstrate scalable revenue models that attract buyers. However, taproom-focused breweries with limited distribution can still command strong valuations based on high-margin direct sales. Per SBA[14] lending data, diversified revenue across taproom, wholesale, and direct-to-consumer channels reduces risk profiles.
What trends are driving growth in the brewery industry?
Growth drivers include premiumization toward higher-priced craft styles, non-alcoholic beer innovation, hard seltzer and ready-to-drink cocktail crossover products, and expansion of taproom dining programs. The TTB[7] has reported steady increases in new brewery permit approvals, though the pace has moderated as market maturation increases competition for tap handles and retail shelf space.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]SBA Office of Advocacy advocacy.sba.gov
- [7]Alcohol and Tobacco Tax and Trade Bureau (TTB) ttb.gov
- [8]Bureau of Labor Statistics bls.gov
- [9]SBA size standards sba.gov
- [10]SBA 7(a) loan program sba.gov
- [11]CDC/504 loan program sba.gov
- [12]FDA fda.gov
- [13]Bureau of Labor Statistics bls.gov
- [14]SBA sba.gov
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