Nearly a decade ago, with the craft beer industry experiencing a boom, Brouwerij West opened its doors in a former World War II warehouse in San Pedro — and it quickly became the place to go on the L.A. waterfront.
Offering live music, DJs, karaoke nights and other special events, the venue drew long lines and a reliably full house as crowds gathered to enjoy the eclectic beer offerings, a beer garden and tasting room, and food trucks — and to just have a good time hanging out with friends.
The pandemic changed much of that, though the business managed to adapt. But now, following what’s been a deeper change in social habits and consumer preferences — along with rising costs — one of the hottest businesses in town is struggling to stay afloat.
The 26,000-square-foot venue, which opened in February 2016, is poised to close in a few months — no “drop dead” date has been set — if efforts to salvage the business don’t work, its owners have said.
Brouwerij West is not alone. The craft brewery trend that was so hot in the early 2000s now finds itself struggling in a post-pandemic world that has seen a drop in alcohol consumption, especially among younger generations.
“Brewers are experiencing critical challenges at the crossroads of a high-cost environment paired with slowing growth,” Bart Watson, vice president of strategy and membership for the Brewers Association, said in one of the organization’s online articles about industry challenges. “To grow in 2025, brewers must do what they do best: adapt. They also will need to continue to do the hard work to find ways to tell their story and differentiate their brands against the competition.”
Brouwerij West has launched a GoFundMe campaign — which has raised more than $17,000 of its $250,000 goal, as of Friday afternoon — and is actively seeking partnerships to diversify and expand its business model.
The market, consumer habits and competition have changed, said Brian Mercer, who started the business with partner David Holop.
There are still crowds on weekends, Mercer said, “but they’re not drinking as much.” That’s not a bad thing, he said of the healthier trend, though some competition is also coming from the legalized cannibis industry and the sale of canned cocktails.
Costs have also gone up, the owners said, which affects both those having to buy the supplies and their customers.
“They love the site, they still want to be here,” Mercer said of the customers, “but they’re only going to have one beer. The challenge has been to try to figure out something else we can offer so they can still come down here, maybe (offering) something healthier. We’re in our own bubble and struggling to keep the business going.”
Brouwerij West is a distributor to bars, restaurants and supermarkets — all of which have also been impacted by rising prices and a smaller demand.
“We’ve pivoted a number of times,” Holop said, adding that the brewery has expanded to include hard ciders, seltzers and other products to its lineup of classic Belgian-style and farmhouse ales, West Coast IPAs, lagers and mixed-fermentation beers.
As word spread throughout the community about the brewery’s struggles, a push began to keep Brouwerij West going.
Social media posts — there are tens of thousands of followers on Instagram and Facebook — drew hundreds of comments, with many stunned by the news of a possible closure.
If 11,000 followers “gave $22, (the owners) would have the $250,000 (needed),” said patron Brian van der Brug of Mission Hills.
“If you gave them a dollar for every time you’ve been there this year,” he added, “give that amount.”
The brewery will throw a New Year’s Eve party on Tuesday evening, Dec. 31. The event, which will run from 8 p.m. to 1 a.m., will feature a DJ. The owners are also working on a benefit concert, though there were no details yet.
Other regular activities, meanwhile, have included summer concerts and karaoke nights. The building — used by the Port of LA after it was built by the Navy — is also available for events such as weddings.
There have been potential partners that have contacted the brewery since the news about their situation went out, Mercer said.
“As a fourth-generation native of San Pedro,” Mercer said, “this has just been an amazing project and we’ve been so proud to open up the brewery.”
In 2016, Mercer was contacted by the then-manager of Crafted at the Port of Los Angeles — a venue for artists selling their wares from a companion warehouse next door — and told that an adjacent warehouse was available to lease. Mercer said he didn’t think twice.
“I said, ‘I’ll be right there’ and that was it,” Mercer said, adding that the next thought was “we have to find the money to do this.”
It all took longer than anticipated and the owners had already walked away from a signed lease for a brewery in Belmont Shore in Long Beach to snatch up the opportunity in San Pedro.
After finally moving in, the family- and pet-friendly venue dew immediate crowds.
But other disappointments came along the way, Mercer said, including unused leasing opportunities in both the Crafted and brewery warehouses, along with delays in the much-anticipated West Harbor waterfront development that will be adjacent to the brewery and would help further activate that southern waterfront area.
While they love the space, Holop said, “it hasn’t been without its challenges.”