Sanitas Brewing's closure signals shift in Colorado beer industry
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Sanitas Brewing closed in December. Photo: Mitchell Byars/Axios Boulder
Sanitas Brewing Company, a staple in the Boulder brewery scene for more than a decade, closed its doors last month, capping off a rough couple of years for the state's beer industry.
Why it matters: Colorado's brewery industry is entering a mature — and more fragile — phase, as rising costs, tighter capital and changing consumer habits are forcing closures.
Driving the news: Sanitas Brewing, which first opened in Boulder in 2013, ceased operations in December and closed its taprooms in Boulder, Lafayette and Englewood.
- "It's a hard industry to make money in, and it became obvious to us that we didn't have the access to capital for another round, if you will," Sanitas CEO and co-founder Michael Memsic told Boulder Reporting Lab.
State of play: Shawnee Adelson, the executive director of the Colorado Brewers Guild, told Axios Boulder that while the state's brewery scene exploded in the years prior to COVID, "exponential growth in any industry really isn't sustainable."
- "At this point the craft beer industry has entered a mature phase in Colorado, and with any maturing industry you're going to see turnover," Adelson said.
Threat level: The notion that younger people are simply giving up alcohol is oversimplifying the problem breweries face, Adelson said.
- Younger people have less disposable income than their parents, but at the same time have more alcoholic and non-alcoholic drinking options than ever, she said.
Yes, but: Breweries also face some challenges that are not unique to the beer industry: the rising cost of ingredients, supplies, labor and real estate.
- And unlike some other businesses, Adelson said breweries can't pass on that increased cost: "Consumers are only willing to pay so much for a pint of beer."
What we're watching: Breweries going forward may need to rely on creating a space where people can gather, even if they aren't big beer drinkers.
- That means offering food, programming and even non-beer drinking options, according to Adelson.
The bottom line: Even as breweries must diversify their offerings, the beer industry must still focus on quality, Adelson said.
- She pointed to Colorado's strong showing at the Great American Beer Festival as a good sign for the years to come.
- "Colorado definitely is one of the prime states for having some of the best beer in the country."