Rising costs are hitting the breweries hard.
Beer sales in the U.S. saw a 2% decline last year, with Colorado experiencing a more significant drop of over 3%, according to the Colorado Liquor Enforcement Division. Despite being home to the fourth-largest number of breweries in the country, Colorado faced one of the highest rates of brewery closures, as reported by the National Brewer Association. According to Watson, some of the most developed beer markets, such as Colorado, the Pacific Northwest, and the West Coast, have been among the most impacted by these challenges.
Patrick Toland, the manager of Cabin Creek Brewing in Georgetown, Colorado, shared insights into the difficulties faced by small breweries. Cabin Creek opened in May 2020 in a town of just over 1,000 residents, located about an hour west of Denver. Toland mentioned that rising costs for raw materials like grain and increasing shipping expenses have significantly impacted their business.
This February, Cabin Creek became Georgetown’s only brewery after a neighboring one closed its doors. Toland explained that to keep Cabin Creek afloat, they had to raise prices and diversify their menu to attract more customers.
In response to shifting consumer preferences, Toland noted that many major beer brands are adapting to trends by offering non-alcoholic or alternative beverages. Cabin Creek has had to follow suit, expanding their offerings to remain competitive in the evolving market.
