Hartford Business Journal

16 HARTFORDBUSINESS.COM | JANUARY 31, 2022 Tapering Off Craft beer industry growth slowing amid pandemic, new competition By Skyler Frazer sfrazer@hartfordbusiness.com C raft brewing has been one of the fastest- growing industries in the state over the past five- plus years, but a lengthy pandemic combined with heightened competition could signal a slowdown in the number of new, and existing, Connecticut breweries. Connecticut is home to 125 independently-owned craft breweries, according to Connecticut Brewers' Guild Executive Director Phil Pappas. Like many industries over the past two years, beer makers have struggled at times staying afloat during COVID-19, so Pappas and the guild have been trying to support brewers in various ways, including legislatively. For example, the Guild successfully lobbied lawmakers last year for a 16.7% state tax cut on beer production that will take effect July 1, 2023. "In the last two years our focus has been keeping our breweries alive and open," Pappas said. Even with that support and pandemic-related government grant and loan programs, several breweries in recent months have announced they were closing: 30 Mile Brewing in Old Saybrook; Better Half Brewing in Bristol; and Shebeen Brewery in Wolcott, to name a few. Cottrell Brewing in Pawcatuck also recently announced it would be closing its taproom, though owners could be exploring other options to keep the brand alive. The recent closures may indicate that the local industry is reaching a tipping point, but many brewers are hopeful for the future and end of the pandemic. "We're going to see a lot of breweries come and go, but I don't think breweries going out of business is a detriment to new guys starting," said Curt Cameron, who is the owner of Thomas Hooker Brewing Co., with locations in Hartford and Bloomfield. "Just like restaurants, people will think, 'well you know what, I can do a better job.' " Industry outlook From 2016 to pre-pandemic 2020, the state was averaging about 20 new breweries a year, Pappas said. But growth slowed considerably last year, when only 11 new craft breweries opened. "Our growth rate is definitely slowing down, but that's still a great number in the middle of two years of a pandemic," Pappas said. According to the Brewers Association, U.S. small and independent brewers saw a 9% decline in production in 2020. The dip decreased the craft sector's overall beer market share by volume to 12.3%, down from 13.6% in 2019. Data for 2021 is not yet available. Pappas said the craft beer industry has about a $3 billion impact on Connecticut's economy, supporting 18,000 jobs across different parts of the sector. He predicts Connecticut can support another dozen or so breweries before there may be a saturation point. Owners of many recent brewery closures cited struggles amid COVID-19 as reasons for going out of business. "It really goes to show that no industry is immune to a pandemic," Pappas said. Thomas Hooker is considered a veteran brewery in the state — in operation since 1996 and under the current name since 2003 — with taprooms in Bloomfield and Hartford. The company has about 65 full- and part-time employees. Cameron said his taprooms were busy in 2018 and 2019, but have struggled during the pandemic. To-go orders, a strong beer distribution business and federal Paycheck Protection Program funding helped Thomas Hooker get through the last few years. "[The pandemic] has put a huge strain on our company, either because people are sick, or they're scared to come out right now," Cameron said. Phil Pappas Thomas Hooker Brewing Co. Owner Curt Cameron stands between a few tanks at his facility in Bloomfield. HBJ PHOTO | STEVE LASCHEVER

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