Minnesota craft brewers see rebound
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Illustration: Brendan Lynch/Axios
Minnesota's craft breweries appear to be bucking a stubborn national trend, at least for now.
Why it matters: After four tough years, several breweries here actually improved sales in 2024, or at least slowed their declines, according to state production data analyzed by Axios.
- Overall production increased by 10.8% in 2024, after a few irregular reports were removed from Department of Revenue annual numbers.
- Meanwhile, national consumption fell by 4%, according to the Brewers Association.
What they're saying: Many breweries are adding nonalcoholic beers and THC seltzers to meet changing consumer demands. They're also taking advantage of their typically large taprooms.
- "Our focus has moved a little bit more towards community events and becoming almost an event center," said Boom Island owner Casey McCauley.
State of play: Minnesota has a saturated craft beer market, which means the state's 237 breweries are battling for market share and, like any other industry, sometimes owners decide it's time to close up shop.
- There were seven closings and eight openings in 2024, also bucking national trends, according to Bob Galligan, director of government and industry relations for the Minnesota Craft Brewers Guild.
- Across the U.S., there were 100 more closings than openings last year.
- So far this year, Mankato Brewery, Chanhassen Brewing and Dangerous Man have closed.
Zoom in: Long the dominant player on the scene, St. Paul's Summit Brewing reported a 50% decline in beer production between 2017 and 2023, but rebounded by 8.7% in 2024, per state numbers.
- Other established breweries like Castle Danger, Fulton, Surly, Indeed and Bent Paddle reported declines in 2024.
The other side: Some breweries posted their best years ever and have managed to grow through otherwise difficult times.
- Minneapolis' Pryes Brewing made 1,446 barrels in 2019 and increased that number to 8,254 barrels in 2024.
- St. Paul's Black Stack increased production from 1,556 barrels in 2019 to 5,588 in 2024.
What we're watching: McCauley and other brewers at a recent press event said uncertainty over President Trump's tariffs has them worried they will have to raise prices or re-map their supply chain.