What Cycle Brewing's closure says about the craft beer industry
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Cycle Brewing's downtown St. Pete taproom. Photo: Kathryn Varn/Axios
Once upon a time, busloads of beer lovers descended on Cycle Brewing's annual Barrel-Aged Day to taste brewmaster Doug Dozark's latest creation.
- It was the pre-pandemic heyday of craft beer, when new breweries were popping up everywhere and enthusiasts collected limited releases like trading cards.
Why it matters: Cycle, St. Pete's first brewery, closed last month after 12 years — and its demise says a lot about the state of craft beer in Tampa Bay and beyond.
What they're saying: "There's been no future for craft beer, at least the way we do craft beer," Dozark told St. Pete Catalyst. "The writing's been on the wall for years now."
- "People just aren't there for the beer," he added. "And if you look at our space, all we had to offer was beer."
State of play: It's true that "it's not enough anymore to make good beer," Tampa Bay Brewers Alliance executive director Sean Nordquist told Axios.
- With more breweries comes more competition, and consumers have changed. Owners have to get creative with their offerings to draw more customers and keep their tabs open.
- Think food, trivia, live music and game nights — "that's the sort of thing that not only attracts but keeps people there," Nordquist said.
- Branching into more drink options, too, can help. 3 Daughters now offers craft cocktails along with beer and cider. At a time when more people are going booze-free, breweries like Golden Isles carry nonalcoholic beverages.
The big picture: Nationwide, the craft beer market is struggling, Axios Denver's John Frank reports.
- The industry recorded its third consecutive year of negative growth in 2024, with experts pointing to shifting consumer demand and a maturing industry.
- Tariffs on essentials like grain and aluminum cans are only throwing more uncertainty into the market, Nordquist said.
Yes, but: Florida's scene is hanging in there, despite national trends and what Nordquist called the state's "archaic" distribution laws.
- The Sunshine State entered the market a little later than many states, and the majority of Florida breweries produce fewer than 1,500 barrels a year. That small size keeps operations lean, he said.
What's next: Nordquist predicts that a successful modern brewery is going to be on the smaller side — it's too expensive, and the margins too thin, to build out a large brewery with statewide distribution like Coppertail or Tampa Bay Brewing Co., he said.
- It will have some kind of food component, he said, and it will tap into the culture of its surrounding community, whether that's partnering with organizations for events or acting as a "third place" for locals.
As for no-frills, beer-only spots like Cycle, he said, "I don't see, at least in the current market, how that can make it."