Why do breweries close?

Thanks. I haven't kept track. So are MolsonCoors, ABInbev, and (maybe) Pabst the only non-craft brewers now? So does Pabst, which hovers about 6 million barrels, qualify now?

 

I guess you haven't. That happened in 2014.
March 2014 Brewers Association updates definition of 'craft brewer' which now includes Yuengling

Well, along with the former craft breweries they own, as well as the other foreign-owned breweries*, like New Belgium, Bell's, Stone, Genesee, Founders, Lagunitas, Avery, etc. (Even Anchor was off the list before recent the closure and subsequent purchase). *Well, they've made an exception for the ones owned by Duvel Moortgat.

Pabst's barrelage, based on the Brewers Association's estimate, was around 3.2-3.3 million bbl., for 2022 and 2023. They remain off the list because ... gotta ask the B.A. Tradition, I guess?

 

Right. As you said, we were specifically addressing Tanglefoot. Yes, if you have the capital, by all means jump into craft lager. This fellow has limited funds. Many suppliers require payment within 30 to 45 days of purchasing raw materials. He's sitting on lagers for six plus weeks. Then waiting another 30 plus days to get paid after he ships. That's rough on a shoe string budget.

 

Absolutely. If you wanna start a brewery on a budget I recommend seltzers, kettle sours, and IPAs. If you've got local fruit farmers you could even get seconds for fairly cheap so you can make your beers "innovative"!

 

I like to boink hot chicks, then I became a **** star, not so much anymore! Happy Lack-of-Independence Day

 

Well, that is the curse of the professional. No doubt male **** stars suffer from a certain ennui, and I'll bet pro brewers do too. We've all heard the stories from the early, glory days of "craft beer": the brewer concocts a weird beer--a 10% IPA or whatever. Customers virtually spit it out in disgust. But the brewer perseveres and wins in the end: the customers come around, their taste improves (but not the beer's, necessarily), and the brewer is a hero. I remember Weyerbacher in PA was known for this sort of defiance, which won in the end... Sort of.

Nowadays it seems the brewer is, well, a real pro: what the customer wants is what is brewed. We all still respect the very high standards maintained by Sierra Nevada, but many of us lament the fact that the wide variety of beers once brewed by Grossman and Co. is now narrowed down to a collection of hazy IPAs. Gone are the stout, the porter, Summerfest seems on the way out, etc. I can't believe that in their heart of hearts the oh-so-professional brewers are any happier about this than many of their customers are.

 

I dunno, I’ve went through a case and a half of Summerfest, seems to be alive and well.

 

That's a bit unfair to Sierra Nevada. They invested big bucks in their modern, efficient breweries. I understand they aren't making some of the beers that they used to. But I'm sure they would make them if they could convince their wholesalers and retailers to stock them, and the public to buy them. Have they economized on ingredients or processes? Has the quality of their beers decreased? Are they charging too much? What would you suggest they do different that would cost a few more $$?

 

Well they are a business, so it's a good thing they're making business decisions.

Making beer that doesn't sell is one reason a brewery could close

 

It definitely is a case of "dollars and cents". However, maybe it's not "all about dollars and cents". They did invest in infrastructure that probably will have a payback over a long term. They did recently put a bundle into "beyond beer" (I'd say "less-than-beer") which looks like it could be "all about . . .". A mistake, maybe?

 

the reality though is that most people in this situation would be trying to get an SBA loan, and you’re not going to get a high-leverage, government-backed loan like that for a new venture without a track record and profits. Sure maybe there’s a tiny percentage of people looking to open a brewery that have a relationship with their small local/regional bank from other business ventures and that bank might have balance sheet and capacity to step out and lend on something new like that, but we’re talking about a very small percentage of situations here…

 

I know a guy in San Diego that runs a one store pizza place for the last 16yrs. He has no intention of expanding anything, according to him he makes great income isn't overworked and goes surfing in the afternoons. Keep it small and be happy, try to grow and you will get into trouble. There are many brewpubs that try to expand when they shouldn't there's no market out there for it all to often the losses pile up then they have no income. Everyone copies the how to open and run your own brewpub business model it's all been mapped out. Stores are full of all the same styles of hoppy beers. That's what I see...but what I would like to see is something original that others won't immediately copy like it's the newest dance craze. I bet I won't get my wish.