State of NC Beer

So I was fortunate to go to the North Carolina Craft Brewers Conference this week. I only attended Monday so I can see friends at trade show, work on my network and help the Brewers Guid a bit. The mood was sober, though there were people drinking of course.

Everyone knows the state of the industry, Rogue's recent closure was a frequent topic. If elder statesman companies are safe, how are the rest of us? THC has been thought to be a future market driver, but with recent federal law that may be less certain. Since COVID taprooms have been down, people get out less to socialize which may have other negative social impacts besides in the beer world.

Vendors were also cautious, recognizing less traffic on the floor, but to the advantage of it was being able to have in depth conversations without ignoring other customers. Business that had other markets than craft beer were optimistic, but clear other industries are gaining attention as craft slows. Dairy and food service were clear targets. I can't help but wonder about more niche products in the current market, software comes to mind because specialized products they make that won't transfer to other industries. Also they are seeing the consolidation aspect as Glass Door (Untappd and Ollie) has acquired Ekos. There are at least six major software vendors and perhaps two run on platforms easily adaptable to other industries so this may be just the beginning. Other vendors like packaging are transitioning to other products, THC, seltzer, or water, after all cans are cans. Brewhouse manufacturers only a couple of local companies were present, down from the boom times when a number of firms had booths, but considering the auction market is so strong currently it wasn't surprising.

Brewers remain brewers, lively enjoying each others company. But beneith the laughter and cheer, we all shared a sense of not knowing what the future holds, both for the industry and our companies. Hardly a week goes by without notice of someone closing. Leasing it's a bad time if you are coming to initial contracts with companies being outpriced from communities they helped create. If you own your building and have paid off your equipment you probably survive. But plenty of under used capacity is out in the market, alternative proprietorship or contract brewing may assist with that.

For me it was a good conference, reestablished ties with friends, found a few leads, and a free beer was nice too. I am hopeful to be able to discuss more soon.