US craft beer sector sees more closures than openings
The independent beer industry in America is reporting more brewery closures than openings for the first time. The post US craft beer sector sees more closures than openings appeared first on The Drinks Business.
The independent beer industry in America is reporting more brewery closures than openings for the first time.
According to the Brewers Association, in 2024 the US saw 399 brewery closures compared to 335 new startups. Additionally, challenges for the sector have also come in the form of operational costs rising while beer sales have also dipped.
Reports via Hoodline recently revealed that the issues facing craft breweries initially began at the start of the pandemic with challenges arising from lockdowns along with brewers needing to pay more for raw materials as well as absorb shipping costs, with beer sales dropping nationally by 2%.
The Colorado Liquor Enforcement Division also reported that had seen sales slump by 3% - a blow for the nation since Colorado has long been known for its craft beer scene.
Speaking about the challenges, Brewers Association president and CEO Bart Watson, told FOX Business that “the pandemic obviously also had secondary ripples for the economy, for supply chains, and it changed consumer patterns overall”.
Watson also revealed that closure rates appeared the highest in "states with the highest number of breweries," such as California and Pennsylvania, noting the impact on the West Coast and Pacific Northwest.
According to the Phoenix New Times, what is happening broadly across the US is also being reflected in Arizona's beer scene and while nationwide production declined 2%, Arizona's craft brewers have been trying to adapt to consumer preferences.
Kitsune Brewing Co owner Tyler Smith explained: "We can see the writing on the wall” and revealed that to remain competitive and broaden its appeal, the brewery has broadened its menu to include other drinks alongside beer.
Arizona Craft Brewers Guild executive director Andrew Bauman said: "I always say I have 100 different breweries in Arizona and they have 100 different business models”.
As if in testament to this, Arizona’s brewers are finding ways to creatively navigate the challenges. For instance, Wren House co-owner, Drew Pool told the Phoenix New Times that he has kept his American lager brand Valley Beer at US$6 a pint regardless of economic fluctuations and insisted: "That’s our inflation buster and we plan on charging US$6 for it 10 years from now”.
Despite the challenges however, the overall sentiment from those leading the US craft beer scene has shown its strengths. For instance, this has also led to a raft of events being hosted and a renewed determination to work together and create experiences to connect with the community.
Reports are showing that the independent sector digs deep in times of great pressure and is showing that from the proliferation of collaborations and festivals, illustrating that brewers pour as much effort into crafting long lasting relationships with their patrons and each other as they do their beers.
According to the Brewers Association, in 2024 the US saw 399 brewery closures compared to 335 new startups. Additionally, challenges for the sector have also come in the form of operational costs rising while beer sales have also dipped.
Reports via Hoodline recently revealed that the issues facing craft breweries initially began at the start of the pandemic with challenges arising from lockdowns along with brewers needing to pay more for raw materials as well as absorb shipping costs, with beer sales dropping nationally by 2%.
The Colorado Liquor Enforcement Division also reported that had seen sales slump by 3% - a blow for the nation since Colorado has long been known for its craft beer scene.
Speaking about the challenges, Brewers Association president and CEO Bart Watson, told FOX Business that “the pandemic obviously also had secondary ripples for the economy, for supply chains, and it changed consumer patterns overall”.
Watson also revealed that closure rates appeared the highest in "states with the highest number of breweries," such as California and Pennsylvania, noting the impact on the West Coast and Pacific Northwest.
According to the Phoenix New Times, what is happening broadly across the US is also being reflected in Arizona's beer scene and while nationwide production declined 2%, Arizona's craft brewers have been trying to adapt to consumer preferences.
Kitsune Brewing Co owner Tyler Smith explained: "We can see the writing on the wall” and revealed that to remain competitive and broaden its appeal, the brewery has broadened its menu to include other drinks alongside beer.
Arizona Craft Brewers Guild executive director Andrew Bauman said: "I always say I have 100 different breweries in Arizona and they have 100 different business models”.
As if in testament to this, Arizona’s brewers are finding ways to creatively navigate the challenges. For instance, Wren House co-owner, Drew Pool told the Phoenix New Times that he has kept his American lager brand Valley Beer at US$6 a pint regardless of economic fluctuations and insisted: "That’s our inflation buster and we plan on charging US$6 for it 10 years from now”.
Despite the challenges however, the overall sentiment from those leading the US craft beer scene has shown its strengths. For instance, this has also led to a raft of events being hosted and a renewed determination to work together and create experiences to connect with the community.
Reports are showing that the independent sector digs deep in times of great pressure and is showing that from the proliferation of collaborations and festivals, illustrating that brewers pour as much effort into crafting long lasting relationships with their patrons and each other as they do their beers. 
