Sobering news for the  craft beer business

252
Advertisement

The Brewbound website, which tracks the craft brewing industry, has been posting some sobering news.

Some craft brewers, including a few pioneers, have closed their doors. Brewbound has been featuring news and ads ranging from closings to auctions.

We do know that tastes have changed, with millennials moving over to distilled beverages and wine.

Overall beer shipments are down, with of the larger craft brewers now part of the trend affecting the majors.

Back in 2014, Dogfish Head’s Sam Calagione predicted a “bloodbath” in the industry as the larger craft brewers established national footprints and added production sites. His prediction now seems to be coming true.

Advertisement

Dogfish Head went on to add a minority equity partner in preparing for the battle. 

The Sussex brewer has added a canning line while working to maintain an “off-centered” approach with limited edition and specialty beers that can grab attention. Dogfish also strives to not be a one or two beer company and has gradually added states to its territory.

 

One trend that is hitting some larger craft brewers is “hyperlocal beer” that is sold in a limited area.

One example of this trend, Midnight Oil, will open Sunday in the Pencader industrial, office and warehouse complex south of Newark. Dew Point  in Hockessin is another player.

Hyperlocals are often bootstrapped operations with low overhead. With more surplus equipment coming on the market, a brewer with skills and an appetite from risk may profit from the current turmoil.  

Enjoy your weekend and Go Eagles. Our newsletter will return on Monday. – Doug Rainey, Publisher.

Advertisement
Advertisement