URGENT UPDATE: The Colorado brewing industry is facing a significant crisis as attendance at taprooms continues to drop sharply. Executives gathered at Tuesday’s BizWest CEO Roundtable in Boulder revealed alarming trends: customers are not just drinking less but are going out much less frequently.
Jeffrey Green, co-owner of Very Nice Brewing Co., emphasized the cultural shift, stating, “The general going-out culture has been set back.” This change has been compounded by rising rents, soaring ingredient costs, and minimum wage hikes. In a stark example, Green’s brewery lost its Nederland location to a fire on October 8, 2023, illustrating the precarious position many brewers find themselves in.
Concerns over changing consumer habits are echoed across the brewing community. Steve Conrad, head brewer at Busey Brews Smokehouse and Brewery, pointed out that the younger generation seems less engaged with craft beer compared to previous decades. “The younger generation doesn’t seem to be engaging in the craft-beer world as much,” he stated.
The impact is palpable. Davin Helden, owner of Liquid Mechanics Brewing Co., reported a 5% decline in business compared to last year, following a 3.5% drop the previous year. He noted that some breweries are facing even steeper losses, with reports of declines ranging from 40% to 50%. “We’ve seen a lot of closures, and that’s just the tip of the iceberg,” he warned.
Health concerns are also reshaping drinking habits. Many consumers now track their health data through apps, causing them to reconsider alcohol consumption. Helden added, “If you have one or two beers in the afternoon, that score is going to tank.” This shift has led to reduced frequency of visits to taprooms, especially among young adults, as they prioritize health and wellness over social drinking.
Breweries are not only facing financial challenges but are also adapting their strategies to entice customers back. Bob Baile, owner of Twisted Pine Brewing, has repurposed his brewery’s packaging area into an event space to generate revenue. “Our prime mission is ‘AIS: asses in seats,’” he said, stressing the importance of drawing customers in.
Despite the current challenges, some industry leaders remain optimistic about a resurgence in craft beer culture. Green believes that the trend will eventually shift back to moderation and social gathering, stating, “I think it will come back around with craft beer.”
Moreover, breweries are exploring new marketing strategies and community engagement to attract patrons. Lynx Hawthorne, co-founder of Best Craft Distribution, highlighted the need for innovative advertising beyond traditional methods. “What can we do other than Facebook and Instagram?” he questioned.
The lingering effects of the COVID-19 pandemic have also led to a dramatic shift in consumer behavior, with many getting used to drinking alone at home. As Matt Wiggins from the Boulder Chamber noted, “People’s habits have changed.”
With the industry grappling with these urgent challenges, it is clear that breweries must adapt quickly to survive. The future of taproom attendance hangs in the balance, and the brewing community is poised to innovate and evolve in response to these trends.
As the situation develops, all eyes remain on how these establishments will reclaim their place in the local social scene. For now, the brewing industry is at a critical crossroads, forced to rethink its approach to engage a new generation of consumers.
