The craft beer industry in Oregon, long a leader in the brewing scene, has faced significant challenges over the past year, mirroring national trends that have seen more breweries and taprooms close than open.
Why It Matters:
Oregon has been at the forefront of the craft beer movement for years, with numerous local breweries gaining national recognition. A downturn in this vital industry could have a far-reaching impact, not just locally, but also on the state’s economic and cultural landscape.
By the Numbers:
According to data from the Brewers Association, a national trade group, the U.S. saw more closures than openings in the craft beer sector last year. At least 399 breweries, brewpubs, and taprooms closed in 2024, compared to 335 new establishments. Overall craft beer production also dropped by 2%.
Oregon, once a hub for the craft beer revolution, has lost nearly 75 breweries, taprooms, or brewpubs since the onset of the pandemic, with 35 closures occurring just in the past year.
Notable Closures:
Several high-profile closures have marked this difficult year. Cascade Brewing, known for pioneering the “NW Sour” style, closed its SE Belmont brewpub after 25 years, following the death of founder Art Larrance. Gateway Brewing, operated by Joel and Karen Sheley, shut down after the couple struggled to adapt to shifting market trends. Mt. Tabor Brewing, which started as a small operation on the slopes of Portland’s dormant volcano, ultimately folded after a series of moves and pandemic-related setbacks.
Contributing Factors:
Sam Pecoraro, president of the Oregon Brewers Guild and brewmaster at Von Ebert Brewing, pointed to a range of factors behind the slowdown. He cited inflation, supply chain disruptions, staffing shortages, and changing consumer habits as significant hurdles for local breweries.
“Between inflation, supply chain issues, employee shortages, a pandemic, and a decline in alcohol consumption, these businesses need the public’s and lawmakers’ support to survive,” Pecoraro said in a statement.
Industry Challenges at the Local Level:
Sonia Marie Leikam, cofounder of Leikam Brewing, shared her own struggles in the competitive craft beer market. She noted that breweries are not only competing with one another but also with a wide variety of other beverage producers, making it harder to attract and retain customers.
“The competition for consumer attention is fierce,” Leikam said. “If you want your local craft beer or taproom to survive, please support your favorite local brewery.”
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