Pizza Port defies California's craft brewery sales slump
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Only four of California's 10 largest craft breweries saw sales increases in 2024, and San Diego's Pizza Port is one of them, Brewers Association data shows.
Why it matters: The local establishment is growing even as the industry is shrinking nationwide, with craft breweries closing, sales plummeting and a shift in alcohol consumption.
By the numbers: Several craft brewers around the state struggled last year, but not as much as in other well-established beer scenes like Oregon and Colorado.
- Coronado Brewing saw the biggest dip in sales at 11%, while AleSmith held steady.
- Pizza Port and Russian River Brewing, in Northern California, saw 9% growth.
- Sierra Nevada, by far the state's largest craft brewer, saw a 2% increase.
The intrigue: Smaller local spots took big hits, with Ballast Point dropping 60% and Belching Beaver dropping 20%.
- Yes, but: The Lost Abbey saw a 164% growth in sales last year.
Zoom in: Pizza Port, one of San Diego's original craft breweries and the fourth-largest in the state, has focused on selling a "world-class product at a fair price," CFO Jesse Cardella told Axios.
- IPAs are the most dominant style of beer, he said, which the team has leaned into by cranking out five seasonal IPAs every year rather than chasing other trends like seltzers.
- To sustain its growth, Pizza Port also took over a brewing facility in San Marcos in 2023 that added about 40% to its capacity.
State of play: More than 50 breweries closed across the state last year, while 24 opened.
- The closures include 11 local spots like Border X in Barrio Logan, but their beers are still pouring at the women-run Mujeres Brew House.
- It's difficult to become profitable in California with high real estate prices, operating costs, insurance and minimum wages, San Diego Brewers Guild executive director Erik Fowler said.
The bottom line: While the industry may have peaked and demand has flattened, independent local brewers remain part of San Diego's culture.
- "Craft beer isn't a novelty," Fowler said. "It's a staple in people's fridges."