Love, or maybe lose, your local brewery as pandemic slows sales

The country’s expanding craft beer industry is at risk of deteriorating with breweries and microbreweries facing a winter of siphoned sales, spurred by closings planned to slow the spread of the coronavirus pandemic.

Of the more than 8,300 independent breweries in the United States, the vast majority – about 6,000 – are microbreweries and small breweries, which thrive on their on-site beer sales. On-site beer sales have plummeted during the COVID-19 pandemic.

© Mike Snider, USA TODAY
Frank Kuhns, co-owner of Settle Down Easy Brewery Co., in Falls Church, Virginia.

To raise awareness of the plight of local independent beer makers, the Brewers Association, the trade group representing breweries, is promoting Small Brewery Sunday on November 29 – between Small Business Saturday and Cyber ​​Monday.

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Some breweries will have special beers on tap and for sale, curbside or delivered in some cases. Others will have special offers, including discounted gift cards. (Find local breweries on the Small Brewery Sunday site.)

“These are extremely desperate times,” said Justin Cox, founder and CEO of Atlas Brew Works in Washington, DC “We hope people will go to local breweries and patronize them so that they exist when we come out of this case.”

Breweries typically saw their sales drop by about 22% in the July-September quarter, according to a recent survey by the Brewers Association. About two-thirds of those sales were to customers who could drink outside, suggesting that cooler months could lead to even bigger drops in sales.

Another finding: almost a quarter of breweries (22%) are not convinced that they will still be in operation this time next year. With many regions increasing restrictions and cold weather muzzling outdoor consumption, small breweries face an “existential threat,” said Bob Pease, president of the Brewers Association.

“It’s very important to spread awareness of the challenges these breweries face and to remind consumers that these businesses are part of the local economy, they hire and employ your friends and neighbors,” Pease said. “They have been local gathering points and they are often heavily involved in philanthropic efforts involved in the community.”

Turn to marginal sales

Like many small breweries, Atlas Brew Works relies on taproom sales for about 70% of its revenue, which “immediately dries up” when businesses have been forced to shut down, Cox said.

The brewery began making curbside sales a few days after the closures needed at the start of the pandemic. Even though customers can come to the taproom, recently Atlas Brew Works has started shipping to homes in Virginia and Pennsylvania, with plans to start shipping to Ohio soon, he says. “You have to find as many ways to make things happen as possible, just out of the need for survival,” Cox said.

Free State Brewing Co. in Lawrence, Kansas began offering specialty beers for delivery only and selling take-out – some just needing to be reheated, while others had ingredients that you combined to prepare the meal.

When guests come in person, the staff try to create a welcoming but rules-abiding atmosphere, says General Manager Dominic Sova. “Yes, I tell people to put on their masks frequently. If they get up to go to the bathroom and forget to put on their masks, they feel safe and healthy because for a while they have forgotten everything that is going on. in the world, ”he said. “I tell the staff that means you did a good job.”

The limited crowd size has slowed the growth of the two-year-old Settle Down Easy Brewing Co. in Falls Church, Virginia. “One thing is obviously that your financial performance is stale, but what’s really disappointing is the human capital side,” said co-owner Frank Kuhns.

In March, the brewery had to fire its employees, including seven bartenders. Eventually, the pandemic loans helped secure the salaries of their head brewer and one of the bartenders, he says. But most bartenders had to find other jobs. “We are focusing more on our families to help us run the business,” he said. “The three owners stayed behind the bar almost every night just because staffing was so difficult.”

Kuhns has started delivering beer in his Jeep Cherokee, and the brewery has hosted several special events, including Octoberfest and its second anniversary earlier this month.

Come Sunday in this little brewery

For the Little Brewery on Sunday, the brewery will have promotions on canned beer and great deals on gift cards. “As pandemic cases have increased and more restrictions loom, we want to increase more promotions on Instagram and … of course, delivery,” Kuhns said.

Beer lovers shouldn’t take the country’s brewing abundance for granted, says Pease of the Brewers Association. Currently, more than two-thirds of Americans live within 10 miles of a brewery, the association estimates. Craft breweries contributed $ 82.9 billion to the US economy, employed more than 580,000 workers and donated more than $ 80 million to charities, the group said.

Beyond that, breweries and taproom are unique places to drink, eat and socialize.

“You want to go out and patronize these places,” Atlas’ Cox said, “so when it’s over, we don’t just have a bunch of Applebee around every corner.”

Follow Mike Snider on Twitter: @MikeSnider.

This article originally appeared on USA TODAY: Small Brewery Sunday: Love Or Maybe Lose Your Local Brewery As Pandemic Slows Sales