Overview: The Alarm Has Sounded on Beer Festivals
It’s an unfortunate brewing reality that we are forced to confront recently. Beer festivals, traditionally the lifeblood of the craft beer industry, are going through a slow and painful death. These festive events, once brimming with life and beer lovers from around the globe delighting in discovering new brews, have been hit hard by the triple threat of a global pandemic, changing consumer tastes, and increased competition. The impacts of this loss are now starting to ripple through and jolt the craft brewing industry.
Why Does it Matter?
The importance of beer festivals to the craft beer industry cannot be overstated. These are the occasions when craft brewers, often small operations working on tight margins, get the chance to showcase their creativity and skill to a wider audience. These festivals are not only about beer; they are about building a brand, creating valuable exposure, and making sales. It’s a rare opportunity for brewers to connect with their audience, receive direct feedback, and drum up new business. In the absence of these events, brewers are finding it harder to cut through the noise and reach their consumers.
A Deep Dive into the Problem
The recent worldwide pandemic has taken a significant toll on the festival scene. Social distancing norms and restrictions on large gatherings have forced many beer festivals to be cancelled or postponed indefinitely. In a market where face-to-face interaction is crucial for brewers to tell their stories and sell their beers, these changes have been nothing short of catastrophic.
Changing consumer tastes are another driving force behind the decline. Craft beer festivals have thrived on the back of the craft beer revolution. Still, as tastes evolve towards wine, spirits, and newer entries like hard seltzers, the appeal of beer festivals for many consumers has fallen by the wayside.
The craft brewing industry has also become a victim of its success. The explosion of microbreweries and brewpubs means that competition is fierce. The increase in breweries has significantly diluted the impact of beer festivals, adding to the decline and leaving brewers scrambling for alternatives to reach their customers.
Impacts on the Craft Brewing Industry
The current state of beer festivals is delivering a substantial blow to the craft brewing industry. The Brewers Association in the United States, for instance, was forced to cancel the 2020 and 2021 editions of its flagship event, the Great American Beer Festival, dealing a severe blow to its more than 5,600 member breweries.
The cancelations and lower festival footfall have resulted in lower exposures for breweries, reduced sales, and an overall loss of brand building and networking opportunities. For many brewers, the love of the craft may still be there, but the business is proving ever harder to sustain.
Surviving in The New Reality
But craft brewers are a resourceful lot. The industry’s surge over the last couple of decades is testimony to their ability to innovate and adapt. In the face of this adversity, many brewers are getting creative and using alternative methods to reach consumers.
The internet has become a refuge for many of these brewers. Virtual beer festivals have become a popular way to keep the festival spirit alive while adhering to social distancing norms. Brewers are also increasing their online presence by offering direct to consumer sales and developing strong social media strategies.
Will Beer Festivals Bounce Back?
Although there are obvious and significant hurdles to overcome, there is hope in the brewing community that beer festivals can stage a comeback. As with so many sectors, the post-pandemic world may look very different for beer festivals, with increased reliance on technology and potentially different formats designed to engage an evolving consumer base.
One thing’s for sure – although the beers might be brewed in solitude, the spirit of the craft brewing industry is all about community. It’s that sense of community that gives us hope that, despite the challenges, beer festivals, in some form or another, will survive to serve another round.
