Craft Beer Volume Declined Again, 4 Outta Last 5 Yrs, We Estimate Craft beer remained soft in 2024. Volume declined for the 3d year in a row and 4th year outta 5, CBN estimates, on track to finish ~4 mil bbls below its peak in 2019. This also marks the 6th straight year of share loss in off-premise scans. Craft beer held nearly 12 share of $$ in 2018 Circana multi-outlet + convenience channels. This year it's down to just 10 share of $$ YTD thru Dec 1. The category's taking hits from every angle. Distribs continue to shift attention toward other categories as craft consistently scores lowest of any beer segment in NBWA's Beer Purchasers' Index, measuring distribs' ordering tendencies (including a reading of 30 in Dec 2024). Craft bottle sales remain one of the biggest drags on segment sales, down double digits again in 2024. Craft can growth slowed tho continues to gobble up share. Keg volume is declining again this year, disproportionately impacting craft. Taproom volume is on track to decline for the 2d year in a row, TTB data suggests. More breweries closed than opened this yr, Brewers Assn estimates. It all adds up to challenging times collectively for the category. Tho there are plenty of ups and downs in the mix.

Tilray At It Again: Acquired ~2.5 Mil Cases of MC Craft; Declining Apples to Apples After acquiring its way to a top-tier craft beer portfolio in late 2023 thru deal with AB, Tilray added even more to its portfolio this year as it acquired Molson Coors' Hop Valley, Terrapin, Revolver and Atwater. Deal closed in Sep 2024 for $22 mil. At the time, co figured that would add another ~2.5 mil cases/yr to the mix, putting Tilray around 15 mil cases all-channel on an annualized basis. In scans, Tilray is listed 14th largest beer supplier by $$ and volume. But Tilray beer sales are declining double digits looking at apples-to-apples trends for the full portfolio. It has 18 different beer, hard cider, spirit and NA beverage brands sold thru its beverage unit. Marketing, selling and maintaining efficient supply chain for this increasingly complex alc bev portfolio across 500+ distribs in the US has been a challenge. Co announced "limited" layoffs that included several key brewing members of 10 Barrel team among others.

On top of its complex beer book, co debuted Delta 9 beverage portfolio in select US mkts thru newly formed "Alternative Beverages Unit." Yet Tilray keeps enjoying incremental sales from beer acquisitions in its reported financial qtrs in the meantime. Tilray's reported alc bev revs grew 137% to $234 mil for running 12 mos thru Aug 2024. It closed on its deal with AB in Oct 2023, has another incremental 12 mos of sales from acquired MC brands, and is still on the lookout for other potential acquisition targets.

New Belgium Growin' but Slowin'; Turning to Other Segments for Extra Pops New Belgium continued its remarkable growth run in 2024, further solidifying its leadership position in the segment. In scans, New Belgium rose to 13th largest beer family by $$ YTD and surpassed Truly in the latest 12 wks. But this year showed first real signs of slowdown since Voodoo Ranger series took off and transformed the company. While Tropic Force was the #1 new brand in craft, Fruit Force declined double digits lapping last yr's launch. Flagship Voodoo Ranger Imperial IPA grew low-to-mid singles and Juice Force still grew double digits in scans. Yet reformulated Fat Tire flopped, declining nearly 30%. And other Voodoo Ranger variants slipped double digits too. At the same time, Bell's struggled while lapping last yr's new mkt launches. So parent co Kirin-Lion's craft beer sales weren't growing at the same pace it's been accustomed to in recent yrs. But New Belgium Voodoo Ranger Hardcharged Tea added a sizable incremental pop this yr. Co's bringing in Kirin Ichiban lager in 2025, adding an incremental 100K bbls to the portfolio. And its new innovation next yr is a non-carbonated FMB called LightStrike, packaged in a unique resealable half-liter PET bottle that riffs on sports drinks.

Athletic Acquired 3d US Facility, Landed Another $50-Mil Equity Raise Led by General Atlantic Firm Athletic Brewing's ambitious expansion plans were on full display in 2024. In Jun, co announced it would purchase another former Ballast Point facility in San Diego, more than doubling its brewing capacity to nearly 1.4 mil bbls/yr once renovations are completed in late 2025. In Jul, co raised another $50 mil thru equity sales, bringing total amount raised to roughly $223 mil since launching in 2018. That gave Athletic an implied valuation of $800 mil, WSJ figured at the time. PE firm General Atlantic was lead investor this round and its veep Harrison DiGia assumed a seat on Athletic's board of directors alongside slew of others. Notably, KDP did not participate in last investment round tho still owns 13.7% stake and chief strategy officer Justin Whitmore also sits on the board. Meanwhile, Athletic's sales growth didn't skip a beat, climbing strong double digits again this yr, building off 258K bbls produced in 2023. Its sales surpassed Heineken 0.0 to become #1 non-alc beer brand family in scans. But with much more capacity coming online by end of next yr/2026, co's still planning for a lot more growth to come.

Craft Driving NA Beer Growth It's not just Athletic gaining ground. NA beer category grew strong double digits again in 2024, and craft brands drove growth most of all. In most developed channel, foodstores, craft NAs grew at double the pace of the category and rose to 42+ share of the category. Athletic's growth plus new entrants from Sierra Nevada and Blue Moon, Deschutes' natl expansion, Sam Adams' continued growth, the rise of Best Day, and emergence of more regional players like Fremont helped drive craft to become the leading subsegment of NAs. Adjacent products like hop waters, which NIQ ropes into craft non-alc beer, also maintained strong double-digit growth this yr. Best Day raised another $20+ mil in capital this yr. And more brewers and brands continue to flock into the space from big and small cos alike.

Unraveling of Big Brewer Craft, Cont'd Big brewers kept scaling back their craft investments in various ways thruout 2024. AB gradually phased out production of brands sold to Tilray thruout this yr. AB closed Elysian's Airport Way facility and Golden Road's Sacramento brewpub, and repurposed the Golden Road Atwater Village & Pub facility to solely focus on small-batch innovation. It also closed Wicked Weed's Funkatorium brewpub and Cultura restaurant indefinitely following Hurricane Helene's damage. These moves and other restructuring led to more craft-focused personnel layoffs. Plus, co listed Platform Brewing's 100K sq-ft Cleveland facility for sale earlier in the year. AB's focus craft brands were among top gainers in the segment this yr, but collectively AB craft sales declined again in 2024.

On top of sales to Tilray, MC closed Leinenkugel's and Tenth Street breweries, and discontinued AC Golden brand, including layoffs. Tho it also acquired Cruz Blanca brand rights, the Mexican-style craft brand from IL co-founded by Frontera Foods' Manny Valdes. Shortly after closing Oskar Blues Austin facility in late 2023, Monster Brewing incurred impairment charges on its craft brands, restructured the Cigar City Tampa facility as an innovation hub, and closed Deep Ellum facility, going thru rounds of layoffs in the process. Heineken's Lagunitas closed its sizable Chicago Brewery, laid off workers and moved all production to Petaluma, CA, currently keeping the Chicago facility as warehouse space. Boston Beer incurred more impairment charges on Dogfish Head, Coney Island and Angel City amid continued declines. Sapporo sold Anchor Brewing to Chobani founder Hamdi Ulukaya. And even top craft co Kirin-Lion closed New Belgium's SF location, sold Magnolia Brewing to new owners, agreed to sell Bell's Upper Hand Brewery to Seven Beverages and went thru a round of layoffs. Tho NBB also invested minority stake in CA-based startup OPEN Brewing.

Gallo Acquired Montucky Cold Snacks, Formed a Malt Bev Unit When the largest wine company with the largest RTD spirits brand and a top-10 bottled spirits biz in the US acquires a regional brewer, you gotta take notice. In May, Gallo did just that, announcing it would acquire Montucky Cold Snacks, a brand that sold nearly 1 mil cases/yr primarily in the Mountain region contract brewed outta City Brewing. This marked Gallo's official entrance into the beer biz and co simultaneously formed a malt bev unit that aims to sell products (of all alc bev types) thru beer distribs. Deal similar to the slew of bolt-on acquisitions and partnerships for relatively cheap that Gallo made in the last couple yrs, primarily in RTD alc bev spaces. After dust from the deal settled, co quietly made Montucky distribution moves in various mkts while setting up the rest of its malt bev unit portfolio and personnel thruout the year. Montucky sales declined steep double digits in tracked retail data. But Gallo's positioned itself for bigger things in beer/beer networks. What's next for Gallo in the beer biz?

Asahi Entered the US with Acquisition of Octopi One of the largest (and most acquisitive) global brewers officially entered the US with its own manufacturing hub as Asahi agreed to purchase sizable contract brewing co, Octopi. Asahi has big plans to grow Asahi Super Dry in the US, among other brands, aiming to utilize much of Octopi's ~850K bbls/yr capacity over time. But co continues to support a roster of contract brewing partners too. And the company has talked to 100s of start-ups regarding other potential beer/bev investments. It separately invested in non-alc retailer Zero Proof shortly after announcing its deal with Octopi.

Notable Craft Mergers and Deals Plenty other cos aside from Tilray, Gallo and Asahi were making notable M&A moves in craftland. MA became a hotbed for activity as Jack's Abby parent co Hendler Family Cos merged its way into a top craft company this year, acquiring Wormtown and Night Shift Brewing. The 3 brands collectively expect to produce about 100K bbls in 2025, making it a top-30 craft player nationally. MA's Lord Hobo (backed by PE firm Valterra Partners) formed an interesting merger with ME's Lone Pine, intending to strike another 4-5 deals in the next couple years. And NH-based Finestkind (Smuttynose) acquired MA's Wachusett Brewing just mos after announcing deal for NY's Five Boroughs Brewing. Following its acquisition of Flying Dog last yr, FX Matt acquired multiple RTD wine & spirits brands, invested a minority stake in Friday Beers and quietly formed JV with Tune THC & CBD bevs alongside Brooklyn Brewery in the last year or so.

Then too, WA's Fremont sold majority stake to Seattle Hospitality Group. Maui sold Modern Times brand rights (while retaining minority stake) to Wings & Arrow, the co run by Saint Archer founder Josh Landan that formed separate alliance with Ninkasi and Ecliptic dubbed Great Frontier Holdings. Crowns & Hops and Full Circle formed a strategic alliance, tho that was quickly unwound, leaving Full Circle to manage its portfolio with Speakeasy and Sonoma Cider. NY's Captain Lawrence and Bronx Brewery, CO's Telluride and Ska Brewing, and CO's Upslope and ID's Payette Brewing all formed different strategic alliances/mergers. On the indie beyond beer side, JuneShine acquired Flying Embers in an all-stock transaction, taking on big name investors like Beam Suntory with it. And internationally, Carlsberg acquired 20% stake in Danish brewer Mikkeller early in the year.

Company Growth Standouts Plenty of brewers are still posting impressive growth amid the broader category challenges. Sierra Nevada returned to solid gains in 2024 as Hazy Little Thing IPA continues to grow and newer brands and packs boosted sales further. VT's Fiddlehead maintained double-digit growth pace, surging past 100K bbls. Rhinegeist sales jumped strong double digits in tracked off-prem channels this yr. Other sizable brands like Troegs and Ninkasi returned to growth. Regional standouts like Boneyard (owned by Deschutes), pFriem, Pizza Port, Russian River, Other Half, Cali Squeeze (owned by Firestone Walker), Coronado, Lawson's, Saint Arnold, Santa Fe, Maine Beer Co, Zero Gravity, New Realm and Columbus Brewing were all growing in 2024, among others.

More Exec Changes for Top Craft Cos This is an ongoing trend in this new phase of craft among top suppliers. But it's extended to top lobbying org, Brewers Assn, which saw transformative exec changes this yr as longtime leaders CEO/prexy Bob Pease and veep of meetings and events Nancy Johnson announced their retirements, and longtime craft thought leader Paul Gatza and others left the org. BA appointed chief economist Bart Watson as the new CEO/prexy and hired Lacey Gautier as new veep of meetings. Among top craft suppliers, Sierra Nevada, Lagunitas, Sapporo-Stone, Monster Brewing, Great Lakes, Creature Comforts, BrewDog and JuneShine all appointed new CEOs. And plenty more personnel movement underneath. Particularly notable that New Belgium saw the most exec changeover of late as Michael Corrigan left his role as CSO to join Keg1 distrib group and NBB promoted Rich Rush to take his place; co hired new CMO Rebecca Dye Yonushonis to fill CEO Shaun Belongie's former role; and it added AB vet Tom O'Connell as new chief supply chain officer as Joe Davis left. Chief ESG officer Katie Wallace also left in Mar after 20 yrs at NBB.

Closings & Bankruptcies Kept Racking Up Many more closures and bankruptcies piled in thruout the year. MO's Urban Chestnut, MI's Griffin Claw, MN's Fair State, WI's Karben4, NC's Gizmo Brew Works and District 9 Brewing were among those that filed for chapter 11 bankruptcy this yr. NJ's Flying Fish went up for auction and sold brand rights to MD's Guilford Hall after going bankrupt. Among higher profile operational closures were VT's Hermit Thrush, TX & NC's Weathered Souls, OR's Cascade, and MO's O'Fallon. Plenty of others scaled back on number of outposts too, including Chicago's Revolution Brewing closing its trailblazing brewpub in Logan Square nabe. But that wasn't your avg craft closing as Revolution owns the building outright, doesn't have any mortgage payments remaining and hopes to draw a "new owner and concept" to buy the space.

Gambrinus' Carlos Alvarez, Jolly Pumpkin's Ron Jeffries and Cascade's Art Larrance Passed Away The craft beer biz lost a few iconic folks in the last year. One of the beer industry's titans of the last several decades, Carlos Alvarez, passed away in April. He was founder and chairman of Gambrinus Company, which originally made its imprint on industry thru importing Modelo portfolio in Eastern US from 1986 until 2006. But that was just one part of his success. He purchased Spoetzl in 1989, a tiny craft brewer at the time, and methodically built the Shiner brand into the leading TX craft brand (by far) and one of the top natl craft brewers, while adding to the portfolio along the way.

Then too, OR-based Cascade Brewing founder Art Larrance passed away earlier in the year. In addition to founding Cascade in 1998, which went on to become a renowned and pioneering sour brewer, Art was also the co-founder of Portland Brewing and created the Oregon Brewers Festival. And founder of MI's Jolly Pumpkin Artisan Ales and another sour beer pioneer, Ron Jeffries, passed away this fall. Many beer industry members in MI and beyond commented at the time on Ron's outsized impact on the industry.

Craft Brewers Investing in Hemp-Derived THC Bevs Like Never Before; More Distribs Getting on Board Hemp-derived THC bevs caused quite the ruckus in 2024, making notable inroads in various states that allowed for sales outside of dispensary channels due to loopholes in the 2018 Farm Bill. MN became ground zero, the "Wild Upper Midwest," with thousands of licensed retailers for the products in state. But plenty others adopted these products quickly, primarily in Midwest and South/Southeast regions. Major TX retailer Spec's onboarded THC Bevs thruout its stores in TX, with some stores boasting up to 24 feet of 5-shelf units just for THC bevs, along with 2 cooler doors. Total Wine has devoted lots of space to these products. And beer distribs are becoming a preferred route to mkt for many brands, with 10-20% of distribs already saying they sell hemp-THC bevs, according to NBWA surveys.

Well before Tilray Brands moved into the space, many sizable craft brewers got into the category, including top MN cos like Surly and Lift Bridge (among many others). IA's Big Grove acquired a majority stake in Climbing Kites, and Field Day Brewing is among top players there. Tho they're battling the state over how the products are regulated. New Orleans' Urban South is expanding its presence. Houston's 8th Wonder jumped into the game after a cannabis co acquired the brewer in 2023. And the list goes on. But states like CA, IA and NJ are pushing back with bans or restructured legislation. And nobody knows what could happen at the federal level. Message from NBWA is to ensure these products are regulated properly at the state level and to hold 'em accountable if they wanna be treated like beer and alc bevs.

The Celebs are Coming! Kelce Bros Bought Garage Beer, Tom Holland Bought Bero & More Beer attracted more celeb investors than typical in 2024. NFL stars Travis and Jason Kelce became the "largest investors" in Garage Beer, initially created by Braxton Brewing before co spun it off. Former wrestler Hulk Hogan started Real American Beer. Actors Ryan Reynolds and Rob McElhenney became co-owners in UK's Wrexham Lager Beer Co. And actor Tom Holland started hi-profile NA beer called Bero. These brands got outsized attention from the jump. Several other beer-adjacent RTD brands drew more interest too, as BeatBox brought on Shaq as an investor/ambassador for new hard lemonade, Jay Z's PE firm invested in Finnish Long Drink, Gallo partnered with Canelo Alvarez's VMC Cocktails, Dr Dre and Snoop Dog started Gin & Juice RTDs, and Kylie Jenner founded Sprinter Vodka Soda.

Asheville Devasted by Hurricane; Industry Came Together for Support, but Lasting Impact Lingers The brewing community rallied to support western NC and other impacted areas in the aftermath of Hurricane Helene's immense damage done to the region. On top of everything else, several small breweries closed in the aftermath of the storms. Many cos started GoFundMe pages, orgs like Beloved Asheville, United Way, World Central Kitchen and American Red Cross gathered funds to support the area. North Carolina Craft Brewers Guild organized the Pouring for Neighbors initiative to allow brewers. Established locals like Highland Brewing opened its doors and acted as a community hub for local charities, aid groups and more. Largest breweries in the region like New Belgium, Sierra Nevada, Artisanal Brewing Ventures and AB's Wicked Weed continue to navigate challenges in the aftermath. And larger beer biz leaders supported the area including AB, MC, and NBWA.