The loss of draft sales due to the COVID-19 pandemic was apparent among regional craft brewers outside of the Brewers Association’s (BA) top 50 craft breweries by volume, according to data published in the May/June edition of the New Brewer magazine.
Of the 121 regional craft beer companies beyond the top 50 — those that produce more than 15,000 barrels of beer annually and sell the majority of their volume through distribution — 67 recorded volume declines in 2020. That ratio — 55% — is a marked improvement over the 72% of top 50 craft breweries that posted volume declines.
Overall, 60% of the 171 regional craft breweries, as defined by the BA, declined in 2020. This tracks with the industry-wide 9% decline in production last year, to 23 million barrels — the first volume decline since the BA began tracking production data.
However, even in challenging on-premise and taproom landscapes, several regional craft breweries’ recorded volume growth, elevating them in the BA’s annual ranking.
New Jersey’s Cape May Brewing Company’s volume increased 52%, to 35,653 barrels, propelling the company up 59 spots to No. 127. Hopewell Junction, New York-headquartered Sloop Brewing’s production grew 34%, to 33,926 barrels in 2020, pushing the brewery up 46 spaces to No. 73. Burlington, Vermont-based Zero Gravity Craft Brewery (+44%, to 29,300 barrels) leapfrogged 65 spots, to No. 82. Garnerville, New York-based Industrial Arts Brewing’s (up 68 spots, to No. 124) volume increased 28%, to 20,043 barrels.
Outside the northeast, production at Colorado’s Denver Beer Co. (up 42 spots, to No. 100) increased 21%, to 25,141 barrels. Atlanta, Georgia-based New Realm Brewing increased volume 26%, to 20,133 barrels, pushing the company up 60 spots to No. 123.
Fort Worth, Texas-based Martin House Brewing rose 132 spots to No. 128 and increased production 83%, to 19,575 barrels, which pushed the company out of microbrewery status and into the regional craft category. Martin House distributes its beer exclusively within Texas, but drinkers in other states can purchase it through e-commerce retailer Tavour.
In Virginia, Aslin Beer Company’s production increased 133%, to 17,500 barrels, pushing the brewery from the taproom designation to regional craft brewery status, a shift that indicates the brewery expanded its distribution business to overtake its on-site sales business.
Of the 67 regional craft breweries that declined in 2020, 12 were in California, where overall craft beer production declined 11% amid strict on-premise limitations.
California regional craft breweries posting double-digit declines included:
- North Coast (-25%, to 43,609 barrels);
- Bear Republic (-28%, to 43,000 barrels);
- Karl Strauss (-56%, to 37,300 barrels);
- Drake’s (-32%, to 30,000 barrels);
- Fort Point (-16%, to 26,270 barrels);
- Mother Earth Brew Co. (-23%, to 25,480 barrels);
- Trumer (-13%, to 18,900 barrels);
- Figueroa Mountain (-17%, to 17,750 barrels);
- The Bruery (-10%, to 17,750 barrels);
- Latitude 33 (-15%, to 16,300 barrels).
In Utah, Uinta Brewing’s volume declined 14%, to 41,348 barrels in 2020, less than half of its recent peak of 93,338 barrels in 2017. The Salt Lake City craft brewery retrenched its business to the western U.S. in 2019 and is now selling beer in fewer than half the states it was the previous year. On top of that, Utah changed its liquor laws to allow 5% ABV beer to be sold in grocery, convenience and draft, causing a consumer purchasing shift away from Utah Department of Alcoholic Beverage Control Stores, which also cut store hours.
BJ’s Restaurant and Brewhouse, a brewpub chain with 200 locations in 29 states that is classified as a regional craft brewery, declined 50%, to 26,875 barrels.
Beyond California, other regional craft breweries with declines of 20% or greater include:
- Yards (-22%, to 31,843 barrels);
- Lord Hobo (-36%, to 30,075);
- Big Sky (-27%, 29,130 barrels);
- Two Brothers (-20%, to 27,250 barrels);
- Foothills (-33%, to 25,582 barrels);
- Schlafly/The Saint Louis Brewery (-23%, to 23,745 barrels)
- Wormtown (-28%, to 22,478 barrels);
- Mac and Jacks (-33%, to 22,317 barrels);
- Boneyard (-22%, to 22,240 barrels);
- Breakside (-22%, to 21,435 barrels);
- Great Divide (-29%, to 20,812 barrels);
- Maine Beer Co. (-22%, to 19,584 barrels);
- Berkshire Brewing (-27%, to 19,000 barrels);
- Captain Lawrence (-30%, to 18,769 barrels);
- Urban Chestnut (-29%, to 16,000 barrels);
- Austin Beerworks (-23%, to 15,521 barrels).
Two breweries’ volumes remained flat in 2020: Louisiana’s Parish Brewing (18,901 barrels) and South Carolina’s Westbrook Brewing (16,000 barrels).
New Jersey’s Flying Fish and Oklahoma’s COOP Ale Works did not publish production figures in 2019, but both declined in 2020 compared to their 2018 production volume, by 8.6% and 8.8%, respectively.
Production growth led several breweries to reclassify from microbreweries to regional craft breweries as the crossed the BA’s 15,000-barrel threshold, including:
- Sycamore (+42%, to 19,977 barrels);
- Dust Bowl (+14%, to 16,503 barrels);
- Maplewood (+37%, to 16,500 barrels);
- Altamont (+21%, to 16,177 barrels);
- Krebs Brewing/Choc Beer/Prairie Artisan Ales (+45%, to 16,051 barrels);
- Almanac (+5%, to 15,200 barrels);
- Lone Pine (+16%, to 15,191 barrels);
- Jackie O’s (+3%, to 15,000 barrels);
- HenHouse (+25%, to 15,000 barrels).
Both Illinois’ Maplewood (+37%, to 16,500 barrels) and California’s Altamont (+21%, to 16,177 barrels) recategorized from the BA’s taproom class, which includes breweries that sell the majority of their beer on their own premises but do not serve food.