San Antonio brewery closures reflect craft beer struggles

Catch up quick: Big Hops Potranco closed last week, according to a Facebook post.

• Before that, Busted Sandal Brewing Company closed its three area locations after more than a decade in business.
• The North Side's Weathered Souls Brewing Company closed in September after eight years.
• The owner of Alamo Beer Co., the popular East Side spot, is exploring selling parts of the company, per the Express-News.
• The owner of Mad Pecker Brewing told the SA Current last month it might wind down beer production and focus on food sales to stay in business.

The big picture: The struggles in San Antonio reflect national trends.

• Nationally, 495 breweries opened last year while 418 closed, per Brewers Association data.
• In 2022, the craft beer industry fell flat, showing no growth for the first time since the pandemic.

By the numbers: There were 445 craft breweries in Texas as of 2023, per local Brewers Association data.

Zoom in: Craft brewers are still facing challenges coming out of the pandemic, Caroline Wallace, executive director of the Texas Craft Brewers Guild, tells Axios.

• The rising cost of real estate is hurting local breweries, which often rent spaces, she says.
• Ingredients and equipment are still more expensive than before due to inflation.

What they're saying: "If we could simply charge $12 for pints of beer to cover the increased costs of doing business, we would," Busted Sandal Brewery wrote on Facebook announcing its closure.

• "You can only raise the price of beer so much," Wallace says.

Between the lines: There's some pressure on breweries to offer more to customers than just a cold pint. Some might feel the need to sell wine or cocktails for non-beer drinkers, and increasingly, to provide nonalcoholic options as well.

• "It's not enough just to make great beer anymore," Wallace says. "You also have to focus on that customer experience."

Yes, but: Statewide, openings are still outpacing closings, with 30 closures and 50 openings in 2023, per data shared with Axios.

• Idle Beer Hall and Thirsty Pups Brewery joined the San Antonio scene in the last year.
• And Silver Lining Brewing is planning to open in the former home of Second Pitch Beer Co.

State of play: Texas has seen a boom in craft breweries since 2013, when legislative changes made it easier for the industry to blossom, Wallace says.

• In 2013 there were just 96 craft breweries operating across the state — a far cry from last year's number.

The bottom line: The market for craft beer in Texas is maturing.

• "The industry is still experiencing growth — it's just that we had several years of really rapid growth before," Wallace says.