Arkansas' craft beer surges as nation's shrinks
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Arkansas is making and selling more craft beer, even as the industry saw a decline nationally last year, according to newly released data from the national Brewers Association.
State of play: That's partly because Arkansas' craft beer industry has more room to grow than other states, Lacie Bray, president of the Arkansas Brewers Guild and co-founder of Rogers-based Ozark Beer Company, told Axios.
Context: Operating breweries has historically been illegal in much of Arkansas because of dry counties. Since 2019, operating a brewery in a dry county has been allowed with some restrictions, and there are seven such permits, Scott Hardin, spokesperson for the state's department of finance and administration, told Axios.
- Benton County has only had a little more than a decade to build a craft brewery scene since voters approved the county going wet in 2012.
What they're saying: Brewers in the Bible Belt have always had to showcase high craftsmanship and offer taprooms that serve as a place for community connection, Bray said.
- So now that drinking rates are declining and people aren't going out as much, the craft beer industry is riding on being more than beer. Breweries partner with food trucks, produce non-alcoholic beverages, do philanthropic work and host events, she said.
- Bill Adams, co-owner of GoatLab Brewery in Lowell, also credits breweries for making easy sippers that are closer to the light lagers traditionally marketed in mass. Not everyone wants several rounds of bitter, high-alcohol IPAs.
By the numbers: The industry made a $518 million impact in Arkansas in 2024, up from $503 million in 2023, according to the Brewers Association. That translates to $231 in economic impact per capita, up from $224.
- The state gained a net of two breweries from 2023 to 2024 for a total of 58, and saw an increase of barrels produced from 52,809 to 53,696, though the gallons produced per resident 21 and older remained at 0.7, according to the association.
Yes, but: Arkansas still ranks No. 40 in breweries per capita, No. 46 in gallons of beer produced per resident 21 and older and No. 36 in economic impact.
The intrigue: NWA's proximity to large businesses and institutions allows for partnerships that give breweries big boosts without having to get people to the taprooms, like Walmart selling Arkansas-made beer in its stores, Bray said.
- GoatLab makes a special beer, Tusk, for the University of Arkansas, with proceeds going toward name, image and likeness (NIL) opportunities for student athletes.
- The partnership spun up GoatLab's production capacity needs from 40 to 400 gallons in six months. The beer is sold at games and in liquor stores statewide, and soon at Walmart, Adams said. GoatLab is also about to start making Tusk Light.
Zoom out: Nationally, craft beer production hit 23.1 million barrels in 2024 — a 4% decline from the previous year and the largest drop in industry history outside the pandemic, Axios Denver's John Frank writes.
- The number of small independent breweries operating in the U.S. decreased for the first time in 20 years, with 501 closures compared to 434 openings.