Last year was a difficult one for breweries in Colorado, and some are projecting more hardships for the craft beer industry moving into 2025.
Colorado lost 41 breweries in 2024 due to closures, according to The Colorado Beverage Coalition. The Brewers Association in Boulder reports more breweries, taprooms and brewpubs closed last year than new ones opened. Since the pandemic, Colorado’s lost 140 breweries — 41 in 2024 and 35 in 2023.
Even the businesses that survive are struggling.
“I think everyone is feeling the pinch, and it’s a multipronged issue,” said Bob Baile, owner of Twisted Pine Brewing Company in Boulder. “Everything from people just drinking less to obviously the economy. You see so many restaurants, including breweries, closing that are still suffering the effects of the COVID years.”
Jill Preston, the marketing director at Left Hand Brewing Company in Longmont, said it’s been a difficult year for breweries dealing with the aftereffects of the pandemic and a changing environment.
“I do think inflation, the rising costs of everything (are a factor),” Preston said. “I think certainly Gen Z and younger millennials just not drinking as much and choosing other beverages is something we’re seeing. And a lot of competition. Competition not only in the brewing industry but with other beverages, and unfortunately that’s a perfect storm, and now we’re really seeing that in the industry.”
According to Colorado’s Liquor Enforcement Division, beer sales in the state are down 3.2%, worse than the Brewers Association’s national average showing craft beer down 2% in 2024. The Colorado Beverage Coalition reports that Colorado’s nearly 450 breweries helped create 63,000 jobs, $4 billion in wages each year and contribute $12.7 billion in economic activity for the state.
“We are arguably the most important beer producing state in America and should be proud to be the State of Craft Beer,” Shawnee Adelson, executive director of the Colorado Brewers Guild, said in a release. “But Colorado’s breweries are facing major challenges. Between inflation, supply chain issues, employee shortages, a pandemic and a downward trend of drinking, these local businesses need the support of the public and lawmakers to survive.”
The Brewers Association predicts continued hardship in 2025.
“As the craft beer landscape evolves, the industry is poised for another challenging year in 2025, with additional uncertainty, potential tariffs and rising costs, retailers and distributors looking to simplify offerings, and potential new dietary guidelines for beverage alcohol,” according to the Brewers Association 2024 Year in Beer report. “Market pressures will likely lead to continued consolidation and alliances to cut costs and utilize excess capacity.”
Baile said part of the problem is that going out to eat is more expensive now. Five years ago, he said, two people could out for happy hour for $25. Now, the same drinks and food cost at least $60. As prices go up, people aren’t seeing that increase reflected in their paychecks, even in Boulder. Baile said the challenge is finding the sweet spot in pricing that will pay the bills but still give customers good value.
“I think people are just so much more aware of their spending these days,” Baile said.
Left Hand Brewing has been hardest hit in its national distribution, Preston said. In many states, a lot of distributors aren’t carrying as many of Left Hand’s brands as they used to five to 10 years ago.
Now, breweries are competing to get people in the door. Left Hand Brewing is hosting more events to bring people in, like live music or yoga. It’s also expanded its drink offerings to include cocktails, cider, wine and non-alcoholic drinks.
“It’s wanting to make sure you don’t have anyone who’s going to veto you because they don’t have what you’re looking for,” Preston said.
The Longmont brewery has also started selling stock in the company for the first time to help bolster the business. Preston said the brewery continues to offer and promote its classic beers while innovating and developing new recipes and seasonal offerings. She anticipates the challenges facing breweries will likely get worse before they get better. Left Hand will aim to be sensitive to what people want, while staying true to their identity.
“I think we recognize in this current environment that the formula that worked 10 years ago and even five years ago doesn’t work now, and you have to be nimble and try to adjust,” Preston said.
Since November, Twisted Pine has instituted a new happy hour all day on Mondays and from 3 to 6 p.m. from Tuesdays to Fridays. The happy hour offers several beers on tap for $5 and discounted shareables. Baile hopes to introduce people to the business and encourage them to visit. Twisted Pine has an event space, and Baile is working to solicit as much business for the space as possible, including everything from football watch parties to birthday parties to corporate events.
Baile said the brewery is also in a favorable location where more than 1,800 residential units have popped up alongside other developments. He wants Twisted Pine to be a gathering place for the community.
“One of our objectives is to really foster a good community relationship with our neighbors,” Baile said. “Community has always been very, very important to us.”
Community is also important to Left Hand Brewery, according to Preston. The brewery has a foundation, called the Left Hand Brewing Foundation, that gives back to the Longmont community and supports its needs.
Preston encourages people to support their favorite local businesses.
“When they’re gone, people are like gosh, I really miss that local place,” Preston said. “Get out and support them, because it’s a tough environment. Not only for breweries, but restaurants and hospitality.”
