This week’s beer goes out to … beer! Which I think could use one after the year that was. But, let’s be optimists folks! Sure, the NY Times made the 2024 brewery decline story street-legal this week … and this story about “5 American Craft Breweries Worth Visiting Over the Winter Holidays” couldn’t even think of 5 different parts of the country to feature, and tries to cram in STONE’s 2 locations that are about 30 minutes away from each other as locations 4 and 5. Really? Couldn’t think of a 5th brewery somewhere else outside of HILL FARMSTEAD, BOSTON BEER, JESTER KING and STONE? Man, maybe that Times story is right! 😬 But even though the BA is projecting another down year for volume in 2025, look – craft beer is now a mature business and this slow rightsizing is what a mature business cycle looks like after a boom! What it’s not though, is a total bust for most craft beer businesses … like it is for many companies in some other categories that, say, rhyme with hard seltzer. Folks are still finding success in craft beer by: - Creating hospitality-focused on-premise locations that actually mean something to the people who live around them, and can communicate that effectively to audiences;
- Making quality, shelf-stable beer that still finds fans on shelves (let’s face it – consistent quality was a huge part of the problem);
- And refocusing on core SKUs, which gives teams a feeling of building something for the long term vs. the never-ending, tiring, churn-and-burn nature that craft beer had for many years.
Businesses will survive and thrive largely based on, lo and behold, how good their actual business fundamentals, people and products are. While I’m not naive to the resulting pain of going through the process of attrition that will continue in 2025, there’s no other way to go to get to a stable business, and one that will also hopefully find a way back to growth in the latter half of the decade. So, make time to venture out in the cold and into the environs of a warm neighborhood tavern or taproom and enjoy a draft beer or 2 as part of your New Year's itinerary to ring in 🍻 this new flip of the calendar into 2025, with entirely fresh sales comps to be had! And Justin, maybe throw an extra “nice beer” in the basement fridge in case the one you were planning on having on New Year’s Eve mysteriously disappears. I hear the deer in Iowa are very thirsty and stop at no bounds. Slainté! -Sean McNulty (you can always reach me here on LinkedIn) |