Worcester Business Journal

January 9, 2023

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8 Worcester Business Journal | January 9, 2023 | wbjournal.com e beer challenges of 2023 Local cra brewers have faced an uphill battle since 2020. is year will bring its own burdens, but there's plenty of reasons to be excited. Craft beer sold in the U.S. in the past three years 2019 2020 2021 Contract brewing 309,601 324,524 346,750 Regional craft brewery 17,739,809 15,426,408 16,275,788 Taproom 1,676,346 1,665,954 2,007,511 Microbrewery 4,915,225 4,108,642 4,582,288 Brewpub 1,679,170 1,316,480 1,569,238 TOTAL 26,320,151 22,842,008 24,781,575 Note: Figures are in U.S. barrels. Source: Brewer's Association from May 2022 BY KEVIN KOCZWARA WBJ Staff Writer C ra beer is ubiquitous now. Shelves are stocked at every liquor store in the state with 16-ounce cans and beer from across the country, but specifically with local beer. e number of Massachusetts breweries distributing their beer to local stores is now 194, according to the Brewers Asso- ciation, a national trade group made up of more than 5,400 breweries. With that, beer has become big business. In Massachusetts, the industry supports more than 14,000 employees and, according to the Brewers Associa- tion, had an economic impact of more than $1.6 billion in 2021. But, like every industry, breweries felt the sting of the COVID pandemic. On-premise sales rebounded in 2022, but draught beer sales to bars and restaurants continued to lag, e Brew- ers Association reports. On top of that, climate change and supply chain issues continued to plague the industry. e barley harvest was better in 2022, but the drought-stricken 2021 kept supplies tight and prices high. At the same time, hop acreage decreased in the U.S., and Europe had its worst harvest in decades. Add in aluminum can supply issues and the previously reported carbon dioxide issues, and breweries across Central Massachusetts had to perform a delicate balancing act to stay in business. ey needed to brew great beer because of competition while staying up on the latest trends and juggling each new obstacle in their way. With all that in mind, and the chang- ing of the year, WBJ surveyed a selection of Central Mass. breweries, specifically the smaller and more localized ones, to get a sense how business is faring. What was the biggest challenge in 2022? Jay Rondeau, owner and head brewer at Penny Pinchers Brewing Co. in Millbury: Navigating the unknown. While everyone had to deal with the various challenges of COVID, we didn't even know what our business should look like, let alone how it would survive during the pandemic. Melynda and John Paul Gallagher, co-owners of Lost Shoe Brewing and Roasting Co. in Marlborough: One of the biggest challenges for us this past year has been determining our packaged cans-to-kegs ratio. We had received our canning line just five months before on-premise consumption was restricted due to the pandemic, at which point we shied fully to cans. As on-premise consumption was brought back and people are now more comfortable going out in public, we have had to shi more heavily to kegs for on-site dra pours. Figuring out the right ratio has been a bit of a challenge. Allen Quinn, co-founder and owner of Amory's Tomb Brewing Co. in Maynard: e biggest challenge was John Paul and Melynda Gallagher operate their Lost Shoe Brewing and Roasting Co. on Weed Street in downtown Marlborough. PHOTOS | MATT WRIGHT

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