Charlotte Breweries: A Changing Landscape in the Craft Beer Industry
Market Volatility Challenges Small Breweries
The Charlotte brewing scene has recently witnessed the closure of Weathered Souls brewery, marking the latest in a series of brewery closures across the country. Industry experts attribute this trend to a combination of factors, including rising operational costs and a decline in consumer demand.
Dr. Bart Watson, chief economist for the National Brewers Association, notes that the competitive market has made it challenging for breweries of all sizes. “Small breweries used to really be thriving, and now it’s challenging across the board,” he says.
Industry Data Highlights Brewery Closures
According to industry analysts, over 385 breweries closed in the U.S. last year, while just over 400 opened. This decline in consumer demand and rising costs has significantly impacted smaller breweries.
“I think we’re seeing there’s still opportunity out there, but it’s not like it was five or 10 years ago where everyone can succeed,” Watson explains. “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.”
Recent Charlotte Brewery Closures
Weathered Souls and Blue Blaze are the latest Charlotte breweries to close their doors. D9 Brewing in Cornelius filed for Chapter 11 bankruptcy in March, but will remain open under reorganization.
Consumer Demand and Pandemic Impact
Dr. Alphonso Ogbuehi, dean of Business and Professional Studies at Johnson C. Smith University, believes that the pandemic has also played a role in declining consumer demand. “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,” he says.
N.C. Craft Brewers Guild Perspective
Despite the challenges, the N.C. Craft Brewers Guild remains optimistic about the industry’s future in the state. Lisa Park, the guild’s executive director, highlights the continued growth and innovation within North Carolina’s craft beer scene.
“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 says. “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.”
