20 Dec Some Good Indicators for Craft Beer As We End The Year
by Mark E. Lasbury for Indiana On Tap
Craft breweries and craft beer fans have been taking it on the chin in recent times. I think much of the pressure on breweries comes from three sources; inflation, drinking trends, and Covid. There has been a reduction in craft beer sales, more closings and fewer openings than anyone could like, and a ridiculous rise in ingredient/labor/real estate/transport costs that occurred at the same time that people were less likely to go out to the taprooms and were less likely to opt for beer.
That’s not a good environment, and the factors seem to have fed each other to give a downward spiral. Perhaps swing is a better word than spiral, I certainly don’t think we’re looking at something permanent, and there may be an indication or two that the pendulum might be swinging back in a better direction.
image credit: Washington Beer Blog
I saw an article in Washington Beer Blog by Kendall Jones that gave a bit of evidence for the growth of craft beer, specifically, draft craft beer. The article, entitled “If It’s Draft, It’s Craft, and Draft Beer Is Making A Comeback,” is a very small snapshot in time, but the author points to some numbers from the groups Draftline Technologies and CGA that draft beer is inching upward, at least compared to packaged beer sales.
To me, this is a good sign on a couple of fronts. One, any increase in beer sales is welcome right now. It may be that not everyone has seen this trend yet, but the fact that it’s happening somewhere may be a harbinger for other parts of the country and industry. Second, the idea that it’s draft beer specifically that is inching forward makes me believe that the Covid-era abandonment of taprooms may be waning. I love the idea that people are drinking draft beer in bars and breweries again as opposed to buying beer to drink at home.
Drinking at the breweries is so much better for their business. The margins are better on their sales, your tipping their staff and reinforcing the need for staffing, you’re buying their food, and you get to learn more and become bigger fans of those breweries. If you buy a can of beer in a store, you can like the taste and the label, but is it going to make you a true fan of what they do? Unlikely. It’s much easier to create a return customer and an ardent fan by getting people into the brewery and immersing them in the whole experience.
It’s harder to sell draft beer, when a bunch of the draft lines disappear. image credit: Trip Advisor
The article stated that post-Covid draft sales had been down, due (to them) to fewer outlets for keg sales (likely from craft beer bar closings – Indy lost The Pint Room and HopCat this year, and that’s a lot of lost taps). I think that fewer visits to breweries has also been a factor in reduced draft sales, but I think we’re seeing some rebound in taproom visits. We’ve had more Tasting Society Marketplace redemptions lately, and even though this is anecdotal – I spend a lot of time in taprooms – and I’m seeing more people at the bar this Fall.
The idea that it’s draft beer that is rebounding a bit speaks well for craft as a whole. The Washington Beer Blog article states that while just 24% of beer sales overall are craft, almost 50% of draft sales are craft – and that is the segment which is starting to grow (at least for now). Another aspect of draft beer – that’s is what is mostly poured at craft beverage festivals.
You buy beer in stores mostly to get something you already know, but draft beer, and beer at festivals, is a way to find something new and to expand your love and knowledge of craft producers. It’s also anecdotal and preliminary, but Indiana On Tap has seen a little bump in enthusiasm of craft breweries to pour at festivals early in 2025 – perhaps too early to make a strong prediction, but I like the trend so far.
The initial list of vendors for Frigid Digits indicates that breweries are getting back out there for festivals – and the list is still growing. image credit: Indiana On Tap
To pile on some more more “less-than-scientific” evidence, I had a talk just last night with a very experienced individual in the industry, and we talked about this article for a short time. He volunteered that his brewery (one of the 12 largest in the state) has been seeing a small, but definite increase in draft sales (as well as overall sales). The people at his brewery that deal with such things were cautiously optimistic about the coming year – an unsolicited opinion – I wasn’t hunting for good news.
Overall, there are still major obstacles to overcome to get back to exuberant growth in craft beer, and perhaps that time is over for good (maturation of the industry). But maybe, just maybe, we’re on the right track. I’ll take the good news here I can get it, and I think the broader point to take home is that your visits to craft breweries do matter. You’re the ones who will determine the trajectory of the industry, so if you love craft beer, act on it.
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