UPDATE: Colorado’s brewing industry is in crisis as taproom visits continue to decline, prompting urgent discussions among brewery executives at the recent BizWest CEO Roundtable in Boulder. Rising rents, ingredient costs, and minimum wage hikes are compounded by a significant cultural shift: fewer people are going out.
Jeffrey Green, co-owner of Very Nice Brewing Co., highlighted a troubling trend: “The general going-out culture has been set back.” His company suffered a devastating loss when their Nederland location burned down on October 8, 2023, but the challenges extend far beyond individual businesses.
Brewers point to a generational divide in drinking habits. Steve Conrad, head brewer at Busey Brews Smokehouse, remarked that younger consumers are less engaged with craft beer. “The younger generation doesn’t seem to be engaging in the craft-beer world as much,” he said.
This generational shift has led to a steady decline in foot traffic. Davin Helden, owner of Liquid Mechanics Brewing Co., revealed that his business is down nearly 5% compared to last year, which itself saw a 3.5% drop. Some peers have reported staggering losses of 40%-50%, raising alarms about the sustainability of many local breweries.
Health consciousness among consumers is also a concern. Helden noted that modern technology, such as fitness apps, discourages excessive drinking, leading to a more cautious approach among patrons: “People are choosing to stay home, watch Netflix, and make their own sourdough,” he said.
Despite these challenges, industry leaders remain optimistic. Green believes that the craft beer market will rebound, as consumers seek quality over quantity: “Instead of a big bucket of macrobrew, they’re having two or three nice beers.”
Breweries are adapting by focusing on creating inviting atmospheres and engaging experiences. Bob Baile, owner of Twisted Pine Brewing, has transformed his facility into a versatile event space, emphasizing the importance of “AIS: asses in seats.” Baile noted a shift toward family-oriented environments, welcoming patrons of all ages.
However, the lingering effects of the COVID pandemic have left many people accustomed to drinking at home. Matt Wiggins, from the Boulder Chamber, stressed that “the places that have developed an environment or an ambience, people want to go back there.”
As breweries work to attract customers back, innovative marketing strategies are essential. Kyle Busey, founder of Busey Brews, called for creative advertising beyond traditional platforms like Facebook and Instagram.
Location plays a pivotal role in customer turnout. Lynx Hawthorne, co-founder of Best Craft Distribution, noted that new residential developments near breweries have boosted visibility and foot traffic, which is critical in these challenging times.
With consumer habits shifting, breweries are also feeling the pressure to adjust pricing. Green pointed out that, “as painful as it has to be, prices have to go down.” He noted that many patrons who used to dine out several times a week are now limiting their outings to once a month.
The brewing community is rallying together, hoping to reclaim the social fabric that once defined taproom culture. As Hawthorne quipped, “I think these guys need a mortgage and kids and a wife, and they’ll start drinking.”
As the industry navigates these tumultuous waters, the key question remains: What innovative strategies will breweries implement to attract customers back to their taprooms? With ongoing discussions and initiatives, the future of Colorado’s vibrant brewing scene hangs in the balance.
