Charlotte brewery struggles force closer look at economy
“Small breweries used to really be thriving, and now it’s challenging across the board.” Weathered Souls and Blue Blaze are the latest Charlotte breweries to close due to financial difficulties. Despite celebrating their first anniversary last fall, the owners announced they were struggling financially. Industry analysts reported over 400 brewery openings and at least 385 closings in the U.S. last year, a decrease in consumer demand and rising operational costs were cited as reasons for these closures. Dr. Bart Watson, chief economist for the National Brewers Association, said there is still an opportunity for smaller breweries to succeed in the competitive market. He added that while inflation and the pandemic of economic instability may have contributed to consumer demand, the industry continues to grow and remains the top craft beer state in the South.
Published : a month ago by Shaquira Speaks in Business
CHARLOTTE, N.C. (QUEEN CITY NEWS) — Weathered Souls is the latest brewery where owners feel compelled to lock their doors forever. After celebrating their first anniversary last fall, owners announced the business was struggling financially.
They tried to renew interest with neighbors in December, but the operators are now opting to close.
“It’s a competitive market, whether you’re a small local brewery thrown out of your taproom or in a distribution-focused brewery with a wider footprint,” said Dr. Bart Watson, chief economist for the National Brewers Association. “So I don’t think there’s one in particular that’s doing better. And that’s one of the things that changed last year. Small breweries used to really be thriving, and now it’s challenging across the board.”
Industry analysts reported more than 400 brewery openings and at least 385 closings in the U.S. last year. Watson says a decrease in consumer demand and rising operational costs are making things tougher on smaller breweries.
“I think we’re seeing is there’s still opportunity out there, but it’s not like it was five or 10 years ago where everyone can succeed,” he explained. “And so those strongest brands are going to rise to the top. And the ones that meet the needs of beer lovers are still going to thrive.”
Weathered Souls and Blue Blaze are the most recent Charlotte breweries to call it quits — each varying in the length of time they’ve been open.
In late March, D9 Brewing in Cornelius voluntarily filed for Chapter 11 bankruptcy with at least $100,000 in assets, but at least $1 million in debts. It will remain open under a reorganization.
Dr. Alphonso Ogbuehi is the dean of Business and Professional Studies at Johnson C. Smith University. He says while inflation has hurt, he believes the pandemic also played a part in consumer demand.
“So we’re not going to see as much growth in that space as we would like to until the consumer lifestyle evolves to the point where you’re going to see more activity similar to what we used to see before the pandemic, whether it’s the gym or James or somebody, please let people go out and socialize and hang out informally.”
Lisa Park with the N.C. Craft Brewers Guild says the industry continues to grow and hold its place as the top craft beer state in the South.
“We currently have over 420 breweries in operation from mountains to coast, with 34 new breweries opening last year, and 10 opening in the first quarter of this year,” Park told Queen City News. “While the craft beer industry, along with most other industries, have seen changes in the market since coming out of COVID, our N.C. craft breweries continue to provide delicious and innovative craft beers, as well as a growing variety of alternative craft beverages.”
Topics: Markets