D.C.'s City-State Brewing ceases beer production

The big picture: Beer sales are down here and nationally, linked to the rise of the canned cocktail market, younger generations abstaining and a post-pandemic change in drinking habits.

• Similar to distilleries, D.C. had a big brewery boom after the city's first modern-day production business, DC Brau, opened in 2011 — but now, the city's seeing closures amid a fiercely competitive, evolving market.

Zoom in: Warner, who opened in 2021, says Covid hit the brewery hard. His business plan was designed for wholesale, but then the market was crippled — and the thirst for beer hasn't rebounded.

• "It's just not profitable to make beer at the scale we were making it," says Warner.
• Rising labor costs and looming tariffs on aluminum cans, Canadian grain and malt, and brewing equipment from China didn't help, "but there were bigger factors at work."

What's next: The pub will stick true to its roots serving beer you won't often find elsewhere, even if it's not their own. As of now, there's still plenty of City-State left, including a recent collaboration with Red Bear Brewing.

• "I'm really proud," says Warner. "We made a brand that connects with the city. We're still all about the history and culture of D.C., we just won't be sending out cans with our label."