American Craft Beer The Best Craft Beer, Breweries, Bars, Brewpubs, Beer Stores, And Restaurants Serving Serious Beer.
2020 was a miserable year for the beer biz. And even though we’re hoping that things get better, we worry that brewers are still in for a bumpy ride.
Restaurants and Bars Will Eventually Reopen
But with COVID-19 cases on the rise, and the introduction of the even more contagious British mutation to the states, the real question is can America’s bars and restaurants wait out this pandemic.
According to the National Restaurant Association, one in six, American restaurants (most that serve beer) have been forced to close since the start of the coronavirus pandemic and unless the government is able to provide a meaningful relief package soon, many will never open again.
As of December 10, 17% of restaurants, more than 110,000 establishments, are closed permanently or long-term. Only 48% of these former restaurant owners say it is likely they will remain in the industry in any form in the months or years ahead.
Craft Beer Delivery Services Will Survive The Pandemic
The world’s buying patterns have been significantly altered by the worldwide lockdowns. More people have transitioned to purchasing their everyday needs online (including beer) and direct-to-consumer purchaser are at record levels.
Whether it’s through a retailer, a brewery, or beer clubs like Tavour, more beer will be making its way into homes in 2021 with the help of someone other than the consumer.
Retailers and breweries that make this process painless and affordable will survive. Those that don’t, won’t.
Hard Seltzers Will Continue To Grow in 2021
You may have noticed that we don’t cover the hard seltzer segment much at American Craft Beer. Hard seltzers, like ciders and meads aren’t beer, so we’re less interested.
But it’s undeniable that hard seltzers are the fastest growing trend in the beverage business and that their rise is cutting into craft beer sales.
The only reason that Boston Beer is doing so well of late is due to Truly, its hard seltzer line. The company’s Samuel Adams beer brand continues to struggle.
Expect to see more craft brewers offer hard seltzers in 2021, if only to survive. But don’t expect those breweries to ever be able to compete with majors like Anheuser-Busch or White Claw who benefit from pricing and nationwide distribution in the hard seltzer segment.
2021 Will See Record Craft Brewery Closings
A craft beer rep who oversees the mid-Atlantic asked us last January “if we thought Richmond, a mid-sized Virginia city, could support more 50 breweries?” We were skeptical then and even more concerned now.
There were more than 8,000 breweries online just before Covid-19 hit. And 2021 will see too many of them close their doors for good.
Most Beer Conferences and Festivals Won’t Return in 2021
Craft beer festivals and conferences are important economic generators for the brewing industry, and with the onset of COVID-19 most of them were cancelled in 2020.
The Brewers Association’s three biggest money generating events, the Craft Brewers Conference, SAVOR and the Great American Beer Festival all went down, leading to two series of layoffs at the Boulder, Co-based trade organization.
On December 8, Firestone Walker Brewing, one of the most popular and accomplished craft breweries in the nation, announced that it had cancelled its two biggest festivals planned for 2021, the Firestone Walker Invitational, and From the Barrel, its annual celebration of craft beer and spirit born from the barrel.
And we’ll see more festival and live beer conference cancellations in the first quarter of the upcoming year.
