Breweries Face Crisis as Taproom Visits Plummet, Executives Warn

UPDATE: The brewing industry in Boulder faces a dire crisis as taproom visits continue to plummet, with overall business down nearly 5% compared to last year. Executives at Tuesday’s BizWest CEO Roundtable underscored a fundamental shift in consumer behavior: fewer people are going out to enjoy craft beer.

Jeffrey Green, co-owner of Very Nice Brewing Co., which recently lost its Nederland location to a devastating fire on October 8, highlighted a troubling trend: “The general going-out culture has been set back.” He noted that even younger generations are engaging less with craft beer.

Steve Conrad, head brewer at Busey Brews Smokehouse and Brewery, echoed Green’s sentiments, stating that the younger demographic, aged 21 to 35, is showing decreased interest in craft beer compared to previous generations. “They grew up differently,” he remarked, pointing to the rise of social media as a key factor in shifting drinking habits.

The trend is alarming for many brewers. Davin Helden, owner of Liquid Mechanics Brewing Co., reported that while older customers still frequent the taproom, they are consuming less: “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.” He emphasized that many of his peers are struggling significantly, with some breweries down 40% to 50% in sales.

Health consciousness is another critical factor. Helden noted that modern consumers, equipped with health-monitoring apps, are more mindful of their alcohol intake. This has contributed to a steady decline in beer consumption, as many people choose to stay home rather than go out.

Brewers are now brainstorming ways to lure customers back to their establishments. “People’s habits have changed,” said Matt Wiggins from the Boulder Chamber. “The places that have developed an environment or an ambience, people want to go back there.”

To combat the downturn, some breweries are pivoting their strategies. Bob Baile, owner of Twisted Pine Brewing, has transformed his brewery’s packaging area into an event space, focusing on hosting gatherings to fill empty seats. “Our prime mission is ‘AIS: asses in seats,’” Baile stated, emphasizing the need for more community events.

As the industry grapples with these challenges, many brewers remain hopeful. Green believes that craft beer will eventually regain popularity: “I think it will come back around with craft beer.” Helden is optimistic too, suggesting that the younger generation might eventually seek out the experiences their parents enjoyed.

However, brewers acknowledge that financial pressures are keeping many potential customers at home. “If we’re going to get people to go out again, prices have to go down,” Green insisted. He noted that many individuals who used to go out twice a week are now opting to stay in, watching Netflix instead.

As the brewing industry faces these pressing challenges, the urgency for innovative solutions has never been greater. The future of taprooms hinges on how breweries adapt to changing consumer habits and find ways to entice patrons back out into their vibrant spaces.