The Opportunity in Open Draft Lines: A Comprehensive Analysis

Introduction

The on-premise draft segment of the market is rife with untapped potential. This is evident from the data collected by Draftline Technologies, which tracks 1 million out of 1.5 million total draft beer lines in the US. The data shows that the number of open draft beer lines has steadily increased from 7.65% in April 2020 to 10.4% in May 2023. This trend represents a promising opportunity for those prepared to seize it.

The Data

The Draftline data is comprehensive, covering both independent and national chain lines. Approximately 70% of the lines come from independent outlets, while the remaining 30% come from national chains. This emphasizes the pivotal role of local breweries and independent beer outlets in fostering the growth and diversification of the draft beer industry.

The Potential of Open Draft Lines

An open line refers to a draft system that is ready for a new keg, thereby enabling the introduction of a fresh beverage. Open lines are consequently an essential indicator of diversity within the draft industry.

Prior to the global pandemic, the number of open lines constituted 7.65% of all lines. As the US gradually adapted to the new normal, these figures began a slow but sure ascent. By August 2020, the number of open lines had climbed to 8.9%, and surpassed the 9.0% threshold in September 2020. Over the following months, the number of open lines persistently grew. By March 2021, it exceeded the 10.0% mark, marking a significant increase from the previous year. As we transitioned through 2021 and into 2022, the figures remained relatively stable, hovering just under 10% of total lines, with minimal variation.

A notable milestone was reached in December 2022, as the percentage of open draft beer lines, as tracked by Draftline Technologies, breached the 10% mark for the first time. This growth wasn't a temporary surge; it represented the onset of a sustained upward trend that has persisted well into 2023.

From January 2023, the percentage steadily increased, from 10.27% to 10.32% in February, and experienced a notable leap to 10.42% in March. The growth trend continued into April, where it peaked at 10.45%. Despite a minor dip in May to 10.4%, open lines have remained significantly above the 10% threshold in 2023, indicating a persistence in open lines post-COVID.

Conclusion

The trend in open lines unequivocally demonstrates that the draft beverage market is ripe with opportunity. The escalating number of open draft beer lines offers significant growth opportunities for distributors and beverage manufacturers. They serve as a barometer of market health, an indicator of consumer demand, and a sign of the changing needs within on-premise draft. Most crucially, open lines unveil a realm of possibilities for innovation and growth in the draft beverage industry.

Call to Action

If you are a distributor or beverage manufacturer, the increasing number of open draft lines represents a significant growth opportunity. For more information and to capitalize on this opportunity, contact us at Draftline to learn how we can help you grow your business. 

Keywords: on-premise draft, draft beer, open lines, opportunity, growth, innovation, beverage industry

About the Authors

Jennifer Hauke is the founder and CEO of Draftline Technologies. Benjamin Simon is an entrepreneur and advisor with experience in the beverage industry. 

To learn more, visit www.draftlinetechnologies.com.