UPDATE: The Boulder brewing industry is in crisis as taproom visits plummet, with many breweries reporting a staggering 5% drop in business compared to last year. Executives gathered at Tuesday’s BizWest CEO Roundtable revealed that a fundamental shift in consumer behavior is reshaping the craft beer landscape.
Brewers are grappling with the dual challenges of rising costs and a significant cultural change. Jeffrey Green, co-owner of Very Nice Brewing Co., expressed concern about a broader trend: “People have stopped going out in general.” This decline in social outings is impacting not just younger drinkers but the entire demographic.
Breweries like Liquid Mechanics Brewing Co. in Lafayette are feeling the pinch. Owner Davin Helden noted a troubling trend: “We’re getting older, and our doctors are saying, ‘Hey, don’t drink four IPAs a day.’” The shift in drinking habits is evident, with regular customers now opting for one or two beers instead of three or four.
The impact of the COVID-19 pandemic lingers, changing how people socialize. “People got used to drinking alone at home,” Helden said, highlighting a stark contrast to past habits. This cultural shift has contributed to a gradual decline in taproom attendance, with some breweries reporting losses as high as 40% to 50%.
As competition intensifies, breweries are adapting their strategies. Busey Brews Smokehouse and Brewery is experimenting with events to draw crowds back. “People’s habits have changed,” said Matt Wiggins from the Boulder Chamber, emphasizing the importance of creating an inviting atmosphere.
Bob Baile, owner of Twisted Pine Brewing, is pivoting his focus to hosting events, turning the brewery into a community gathering space. “Our prime mission is ‘AIS: asses in seats,’” he stated, showcasing the urgency to fill his venue amid declining foot traffic.
Despite the challenges, there is optimism among brewers regarding a potential resurgence. Green believes that a shift back to craft beer consumption is possible. “I think it will come back around with craft beer,” he remarked, suggesting that younger consumers may rediscover the social joys of in-person gatherings.
Advertising also plays a critical role in recovery strategies. Kyle Busey of Busey Brews emphasized the need for innovative marketing approaches beyond traditional social media. “What can we do other than Facebook and Instagram?” he questioned, underscoring the search for fresh ways to reach potential customers.
As breweries navigate this tumultuous period, they are also facing rising prices and increased competition from alternative beverages like wine coolers and seltzers. With many consumers tightening their budgets, Green warns, “As painful as it has to be, prices have to go down.”
The brewing industry is at a crossroads, grappling with a new reality where social habits and priorities have shifted dramatically. The future may hinge on how effectively these businesses adapt to the evolving landscape and whether they can rekindle the community spirit that once drew patrons to taprooms.
As breweries experiment with new approaches to attract customers, the industry watches closely what strategies will resonate with a generation that is redefining social drinking. Share your thoughts on how breweries can reclaim their place in the community!
