Breweries Face Urgent Challenges as Taproom Visits Plunge 5%

URGENT UPDATE: The brewing industry in Boulder is grappling with a significant decline in customer visits to taprooms, with reports indicating an overall drop of 5% compared to last year. Executives at Tuesday’s BizWest CEO Roundtable highlighted a worrying trend: fewer people are going out to socialize, impacting sales at local breweries.

Jeffrey Green, co-owner of Very Nice Brewing Co., which recently lost its Nederland location to a fire on October 8, 2023, expressed concern about the evolving social landscape. “The general going-out culture has been set back,” he noted, pointing to a broader issue than just declining alcohol consumption among younger adults. “People have stopped going out in general.”

Brewing professionals, including Steve Conrad from Busey Brews Smokehouse and Brewery, are noticing a distinct shift in consumer behavior. “The younger generation doesn’t seem to be engaging in the craft-beer world as much,” he stated, underscoring a generational gap in social drinking habits.

Davin Helden, owner of Liquid Mechanics Brewing Co., revealed that the demographic that once popularized craft beer is aging. “The generation that helped craft beer get cool are boomers now,” he said. Health-conscious consumers are opting for moderation, with many choosing to drink less frequently. “We’re seeing people that are in that age demographic still coming in, but it’s one or two beers instead of three or four,” Helden added.

The decline in social drinking is compounded by the lingering effects of the COVID-19 pandemic. “People got used to drinking alone at home,” Helden remarked, highlighting a shift in drinking occasions. Business data indicates that some breweries are facing even steeper declines, with reports of drops as severe as 40% to 50% in sales.

Lynx Hawthorne, co-founder of Best Craft Distribution and co-owner of Loveland’s Grimm Brothers, noted that health trends are also affecting the beer market. “People today carry apps that measure their health metrics, and if they have a couple of beers, that score is going to tank,” he explained.

Despite these challenges, there are signs of hope. Green believes there will be a resurgence in craft beer culture, stating, “I think it will come back around with craft beer.” The key may lie in enhancing the customer experience. Brewers at the roundtable agreed that creating engaging environments, such as trivia nights and events, could attract patrons back to taprooms.

For breweries like Twisted Pine Brewing in Boulder, adapting to market changes is vital. Owner Bob Baile has transformed his brewery’s packaging area into an event space to boost revenue. “The prime mission is ‘AIS: asses in seats,’” he declared, emphasizing the need to fill the space with customers.

Breweries are also strategizing on marketing beyond traditional social media platforms. Kyle Busey, founder of Busey Brews, highlighted the need for innovative advertising approaches to attract customers. “What can we do other than Facebook and Instagram?” he questioned.

As the industry navigates these turbulent waters, many are optimistic that changing social dynamics will bring consumers back to taprooms. “At some point, it’ll be like a flip,” Helden said. “The younger kids will say, ‘Hey, maybe what my parents were doing was cool.’”

With the brewing landscape in flux, stakeholders are closely monitoring these trends and adapting their strategies to lure customers back. As the situation develops, breweries are urged to rethink their approaches to keep pace with changing consumer habits and preferences.

The future remains uncertain, but the commitment to crafting memorable experiences could reignite interest in local taprooms.