What Cycle Brewing's closure says about the craft beer industry

Axios

2 days ago

Once upon a time, busloads of beer lovers descended on Cycle Brewing 's annual Barrel-Aged Day to taste brewmaster Doug Dozark's latest creation.
It was the pre-pandemic heyday of craft beer, when new breweries were popping up everywhere and enthusiasts collected limited releases like trading cards.
Why it matters: Cycle, St. Pete's first brewery, closed last month after 12 years — and its demise says a lot about the state of craft beer in Tampa Bay and beyond.
What they're saying: "There's been no future for craft beer, at least the way we do craft beer," Dozark told St. Pete Catalyst. "The writing's been on the wall for years now."
"People just aren't there for the beer," he added. "And if you look at our space, all we had to offer was beer."
State of play: It's true that "it's not enough anymore to make good beer," Tampa Bay Brewers Alliance executive director Sean Nordquist told Axios.
With more breweries comes more competition, and consumers have changed. Owners have to get creative with their offerings to draw more customers and keep their tabs open.
Think food, trivia, live music and game nights — "that's the sort of thing that not only attracts but keeps people there," Nordquist said.
Branching into more drink options, too, can help. 3 Daughters now offers craft cocktails along with beer and cider. At a time when more people are going booze-free, breweries like Golden Isles carry nonalcoholic beverages.
The big picture: Nationwide, the craft beer market is struggling, Axios Denver's John Frank reports.
The industry recorded its third consecutive year of negative growth in 2024, with experts pointing to shifting consumer demand and a maturing industry.
Tariffs on essentials like grain and aluminum cans are only throwing more uncertainty into the market, Nordquist said.
Yes, but: Florida's scene is hanging in there, despite national trends and what Nordquist called the state's "archaic" distribution laws.
The Sunshine State entered the market a little later than many states, and the majority of Florida breweries produce fewer than 1,500 barrels a year. That small size keeps operations lean, he said.
What's next: Nordquist predicts that a successful modern brewery is going to be on the smaller side — it's too expensive, and the margins too thin, to build out a large brewery with statewide distribution like Coppertail or Tampa Bay Brewing Co., he said.
It will have some kind of food component, he said, and it will tap into the culture of its surrounding community, whether that's partnering with organizations for events or acting as a "third place" for locals.