Arizona craft brewers struggled to bounce back after COVID-19 pandemic
The craft brewing market is trending in the wrong direction.
Why it matters: The once-thriving industry struggled to stay afloat in 2024 after posting its third consecutive year with negative growth, a trend driven by market saturation and shifts in alcohol consumption, particularly among younger drinkers.
Zoom in: Arizona Craft Brewers Guild executive director Andrew Bauman told Axios the industry has been battling a barrage of external market forces since the COVID-19 pandemic.
Some breweries had to take out loans during the pandemic to stay afloat. Now, they're stuck making payments while dealing with inflated prices on everything from barley to hops, he said.
Meanwhile, the hospitality industry has not completely recovered from the pandemic, with many bars and restaurants still operating at reduced hours (closing at midnight instead of 2am, not opening for lunch, etc.).
By the numbers: Nationwide, craft beer production hit 23.1 million barrels in 2024 — a 4% decline compared to the previous year and the largest drop in industry history outside the pandemic, according to data released last week by the Brewers Association.
The number of small, independent breweries operating in the U.S. decreased for the first time in 20 years with 501 closures compared to 434 openings.
What we're watching: The economic headwinds are expected to continue with tariffs (or the threat), which could raise prices on aluminum and steel used for cans and brewing equipment, Bauman said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Miami Herald
an hour ago
- Miami Herald
Veteran investor makes surprising Fed rate call after jobs report
Okay, Jerome Powell, now it's your turn. President Donald Trump on June 6 took a break from bashing Elon Musk to vent his spleen - again - at Federal Reserve Chairman Jerome Powell. Don't miss the move: Subscribe to TheStreet's free daily newsletter Trump took to his social media platform to call on Powell to slash interest rates by a full percentage point. "'Too Late' at the Fed is a disaster!" Trump said on Truth Social. "Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!" Trump made his demand even though the Bureau of Labor Statistics reported that U.S. hiring in May rose more than predicted. Nonfarm payrolls rose 139,000 for the month, exceeding estimates for 125,000. The last time the central bank made a single rate cut of a full percentage point was in March 2020 to address economic fallout from the onset of the Covid-19 Fed cut rates by one full point in total during President Joe Biden's final year in office. "If 'Too Late' at the Fed would CUT, we would greatly reduce interest rates, long and short, on debt that is coming due," Trump said, using the two-word name he calls Powell. "Biden went mostly short term." More Economic Analysis: Hedge-fund manager sees U.S. becoming GreeceA critical industry is slamming the economyReports may show whether the economy is toughing out the tariffs "There is virtually no inflation (anymore), but if it should come back, RAISE "RATE" TO COUNTER. Very Simple!!! He is costing our Country a fortune. Borrowing costs should be MUCH LOWER!!!" It seems like only yesterday when the president was giving Musk - Tesla's (TSLA) CEO and a big-time Trump backer - all kinds of misery after the former head of the Department of Government Efficiency decried Trump's "big beautiful bill" of tax breaks and spending cuts as pork-laden and a "disgusting abomination." Actually, it was yesterday, come to think of it, when Trump suggested that an easy way to save "Billions and Billions of Dollars" was to terminate all of Musk's government contracts and subsidies. Tesla and Musk's rocket company, SpaceX, both benefit from a a number of government programs. Musk, who took credit for getting Trump elected, also decided it would be a good idea to bring up Jeffrey Epstein's name while Tesla shares nosedived. TheStreet Pro's Peter Tchir says that if you're looking for excitement, this is the social-media donnybrook to watch. Unlike the payroll data. The veteran investor said in a recent TheStreet Pro column that the report looked decent on the surface but "there are a lot of things to pick on." "The prior two months were revised down by 95,000," he said. "That negates much of this month's reported gain in the Establishment Survey." The Establishment Survey, also known as the Current Employment Statistics survey, provides monthly data on employment, hours and earnings of workers on nonfarm payrolls. "The Household Survey, used for the unemployment rate, lost over 600,000 jobs," Tchir said. "The unemployment rate remained unchanged only because labor-force participation dropped by a similar amount." Related: An investor looks at navigating tariff wars The birth/death model, which estimates the number of jobs created by new businesses and lost from defunct businesses, added 199,000 jobs, he added. "With low survey response rates, etc., there are a lot of things to question about the quality of the data (the seemingly endless downward revisions validate that 'questioning'), but this number is back to 'bothering' me,'" Tchir said. Without this calculated number, he explained, "we would have lost jobs in the Establishment Survey "kind of like the Household Survey indicated." "Sure, it is possible that in a time of peak uncertainty, lots of new businesses were formed, but the number seems high," Tchir said. "It is the second month in a row when there is a lot of uncertainty, where birth/death adjustment was bigger than the number itself. That is why I would weigh this into being more dovish, if I was at the Fed." Foul weather might have also had a negative impact on the data. "If the Fed was looking to cut rates, it could probably come up with a story around this data to let it do so," Tchir said. "Since the Fed doesn't seem to be looking to cut rates, though, there is enough of a narrative in this report to keep it on hold." "After this data, I remain in the three-to-four-cuts-this-year camp, starting in July." Related: Fund-management veteran skips emotion in investment strategy The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
an hour ago
- Miami Herald
Beloved iconic local restaurant closing after 42 years
Unless you truly live in the middle of the woods, you probably have your fair share of restaurants to choose from when you want to grab lunch or dinner. Even in rural areas, it's common to have a variety of options. And in major suburbs and cities, your choices might be plentiful. You could walk down the street and choose from among a number of popular cuisines without having to search far and wide. Don't miss the move: Subscribe to TheStreet's free daily newsletter Still, when there's a restaurant you've known and loved for years, losing it can be a big blow. Related: Beloved Mexican restaurant closing iconic location after 63 years There might be a similar restaurant five minutes away that serves almost the exact same menu. But if a go-to restaurant of yours has the one special dish that always tastes great, it can be a very sad thing to see that establishment disappear. The past few years have been tough for restaurants across the board. In 2020, dining establishments had to close to in-person service for a period of time thanks to the Covid pandemic. And even once restaurants reopened, many grappled with supply chain issues, labor shortages, and rising costs. Related: Chipotle wants to give out more free burritos Lingering inflation has also driven a lot of people away from restaurants. When living costs are high, consumers have to prioritize. That means they can't drop $80 on dinner for two when that same amount of money could potentially buy food for an entire week. Not surprisingly, a number of popular restaurant chains have filed for bankruptcy and/or closed their doors since 2020. About a year ago, Red Lobster filed for Chapter 11, despite having a loyal fan base. And fast-casual chain TGI Fridays filed for bankruptcy about seven months ago, citing financial challenges. You'd think that restaurants situated in major cities would see their fair share of business. But sometimes, being centrally located can be a mixed bag. Being in a prime location gives you access to more customers. But it's sort of like being in a mall. When there's just too much competition around, you can easily lose business. Related: Costco makes surprising food court change to iconic menu item Also, when you're occupying prime real estate, it can be challenging to negotiate favorable lease terms with your landlord. Or, your landlord might decide it wants to do something different with its space. Despite its popular location along West Hollywood's Sunset Strip, beloved restaurant Chin Chin has announced that it's slated to close at the end of July. The restaurant first opened its doors to West Hollywood customers in 1983 and is known for its classic Chinese menu, including its signature Chinese chicken salad with wonton strips. Chin Chin has additional locations in Brentwood, Studio City, and Las Vegas that will remain open. The West Hollywood location is shuttering after the restaurant's landlord opted not to renew its lease. "At the last minute, I think the landlord had a change in vision for the place, and as much as we wanted to be part of that, Chin Chin just wasn't part of their vision," David Choi, a partner in the restaurant, told the LA Times. "It was just a very sudden change, and so we were kind of left scrambling." Chin Chin does hope to reopen in a new location but is still searching for its next home. In the meantime, the restaurant has launched a GoFundMe campaign to support employees during the transition. In an Instagram post announcing the closure, Chin Chin said, "We are heartbroken to announce that Chin Chin will be unexpectedly closing its doors at our Sunset Plaza location." More Fast Food & Restaurant News: Starbucks makes shocking pricing move customers will loveBankrupt restaurant chain offers new deal, stiff drinkNew Taco Bell menu items combines multiple classics Fans can still dine at the West Hollywood location through July 27. Related: KFC's newest restaurant concept has customers obsessed The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
an hour ago
- Yahoo
Trump Is Bleeding Hundreds of Millions Thanks to Musk's War
The explosion of Donald Trump's once-cozy friendship with Elon Musk is hitting them hard where it hurts most—in the pocketbook. As reported Thursday, Musk's personal fortune was cut by $26.6 billion after Tesla shares slumped by more than 14 percent, wiping a mind-boggling $150 billion off the EV giant's market value. But Trump isn't escaping unscathed. According to Axios, Trump Media & Technology Group stock declined 8 percent, while his MAGA-fueled $TRUMP cryptocurrency tumbled 12 percent—bleeding him of more than a billion dollars. The website reported that the 8 percent dip in Trump Media & Technology Group cost the president around $202 million. But he may be more concerned by the roughly 10 percent decline in the value of of his Official Trump meme coin, potentially costing him nearly $900 million. As Axios noted: 'Both men got to vent their frustrations publicly, and it only cost them about $21 billion.' The dramatic split was triggered when Musk, having departed his DOGE post on May 30, torched Trump's so-called 'One Big Beautiful Bill'—a sprawling tax-and-spending package—as a 'disgusting abomination.' Musk, who had personally poured nearly $300 million into Republican campaigns in 2024, tweeted: 'Without me, Trump would have lost.' After an uncharacteristic delay, Trump hit back—threatening to strip federal contracts from Musk's companies, which would kill electric vehicle tax credits and cost Tesla $1.2 billion this year, according to JPMorgan analysts. Musk then pressed the nuclear button by alleging Trump's name appears in sealed legal files on the late pedophile financier Jeffrey Epstein. He also called for Trump's impeachment, responding 'yes' to a user on X who wrote: 'Trump should be impeached and JD Vance should replace him.' However, a truce may be on the horizon, as Trump and Musk are expected to speak in person on Friday, according to Politico's White House Bureau Chief Dasha Burns. Perhaps, as the old adage goes, money really does talk.
