California beer brewers struggle amid nationwide downturn
Add Axios as your preferred source to
see more of our stories on Google.

Only four of California's 10 largest craft breweries saw sales increases in 2024, Brewers Association data shows.
Why it matters: The once-thriving industry has struggled to stay afloat in recent years due to market saturation, craft breweries closing, sales plummeting and shifts 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.
- Russian River Brewing, in Northern California, saw 9% growth.
- Sierra Nevada, by far the state's largest craft brewer, saw a 2% increase.
State of play: More than 50 breweries closed across the state last year, while 24 opened.
- The San Francisco closures include New Belgium's taproom in Mission Bay, neighborhood favorite Sunset Reservoir Brewing Co., and the longtime Barrel Head Brewhouse.
- The historic Anchor Brewing, the country's oldest craft brewer, also closed in 2023. Billionaire Hamdi Ulukaya, who promised to save the company after purchasing it last year, has yet to provide an update on the state of the brand or its reopening.
Zoom in: Many San Francisco breweries have cited tough economic conditions, high operating costs, and less foot traffic from office workers as factors.
What they're saying: "The world of beer has changed and shifted. There's definitely still a bit of a slow movement back to work and our business really depended a lot on people commuting and coming back to the office," Beth Wathen, co-owner of the recently closed City Beer Store, told SFGATE.
Yes, but: Some state breweries, like Pizza Port in San Diego, have been sustaining steady growth despite the nationwide downward trend.
Caveat: Not all California breweries are represented in the data because some do not share sales numbers, and some sales figures are estimates.
- Some major breweries are not included because they are owned by major conglomerates. Stone Brewery is not listed because it no longer qualifies as a craft brewer after selling to Sapporo in 2022, for example.
- Others like Almanac Beer, Barebottle Brewing and Eel River Brewing are among those that don't disclose their financials.
What we're watching: The 2025 outlook for the craft beer industry doesn't favor a rebound. Small brewers are being hit especially hard by tariffs on equipment, kegs, aluminum cans and ingredients, such as hops and grain.


