Oregon brewery closures continue to mount
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More breweries closed in Oregon than opened last year, a trend that foreshadows tough months ahead for the industry.
State of play: The 22 brewery and brewpub closings included well-known names like Ex Novo and Ecliptic and exceeded the 12 openings, according to an Axios analysis of data recently published by the Brewers Association, the industry's trade group.
- The lopsided numbers defied national trends showing more openings than closings.
By the numbers: The breweries that remained open didn't fare well, either.
- Seven of the 25 Oregon breweries that reported sales numbers posted positive growth in 2023, the association found. pFriem Family (11%), Breakside (13%) and Ferment (18%) led the pack in terms of sales increases.
- Double-digit decreases were more common. Full Sail saw a 25% drop in sales, while Level Beer fell 21%. Rogue Ales sold 17% less beer in 2023.
Caveat: Not all of Oregon's 300-plus breweries are represented in the association's data because some don't post public sales figures. For instance, 10 Barrel Brewing, now owned by Canadian company Tilray, is not broken out in the data.
The big picture: Independent craft beer makers are faring better than the overall market, but the 1% drop in production last year represented the first negative number in the industry's history.
- The largest brewer in Oregon remains Bend's Deschutes at more than 227,000 barrels in sales, despite an 11% drop in 2023.
What we're watching: The industry's overall negative trend is continuing into 2024 with production volume from independent breweries down 2% at the midyear mark, the association's chief economist, Bart Watson, said in a recent briefing.
- Brewery closures are continuing, too. Most notably, Cascade Brewing, a pioneer in the Portland beer scene, abruptly shut its doors in June. Labyrinth Forge also closed, after a year in business.