1 in 3 Texas Craft Breweries Could Close In Next Three Months

A new survey put out by the Texas Craft Brewers Guild has found that one in three Lone Star State craft breweries believe they’ll be forced to close within the next three months and that 2 in 3 won’t make it to 2021.

Yikes…

In its online survey of 87 of its member breweries the Texas Craft Brewers Guild found that, thanks to Governor Abbot’s recent COVID-19 shutdown order which closed taprooms for a second time, many of Texas’ craft breweries don’t think they’ll survive…

One in five breweries reported that they are already experiencing an 80% or more revenue decline. And only 14% of respondents believe they could make it longer than one year under current conditions.

“Texas has already seen craft breweries permanently close because of the pandemic and ensuing economic crisis,” Texas Craft Brewers Guild Executive Director Charles Vallhonrat said in a press release.

“The outlook from here is even worse. We continue to implore Governor Abbott to finally do something to help them. His 51% Executive Order is crushing Texas breweries, and for no good reason. Before he inexplicably closed taprooms down for a second time, they were operating under the same health, safety, and social distancing guidelines as restaurants and other businesses that the Governor has allowed to remain open. We’re just asking for consistency and fairness.”

Responding to a rise in COVID-19 infection rates, Governor Abbot issued an executive order on July 26 closing businesses that receive more than 51% of their gross receipts from the sale of alcoholic beverages. Those business are still open for delivery and take away, but taprooms that breweries argue were operating according to state mandated social distancing and safety mandates were effectively closed by Abbot’s dictate.

“As I said from the start, if the positivity rate rose above 10 percent, the State of Texas would take further action to mitigate the spread of COVID-19,” Abbott said. “At this time, it is clear that the rise in cases is largely driven by certain types of activities, including Texans congregating in bars.”

According to the survey Texas craft breweries have already been forced to lay off or furlough an average 36% of their workforces and only 14% of responding breweries believe they could make it longer than one year under current conditions.

“Texans, if you want your local breweries to still be in business on the other side of this second shutdown, please continue to vote with your dollar and buy local, small, and independent beer,” Vallhonrat added…