Oregon's craft beer industry is fizzling out like a keg at a poorly attended party, with 2023 marking one of the bleakest years in recent history. Brewpubs and taprooms have been shutting down at an alarming rate, leaving brewery owners scrambling to adapt. Oregon Brewers Guild reported the closing of around 30 of the state's 400 breweries, a hit that also reverberates through the sector's 50,000 jobs and nearly $9 billion economic output. Sonia Marie Leikam, co-owner of Leikam Brewing and vice president of the Oregon Brewers Guild, confirmed the troubling trend in an interview with OPB, as did Mike De Kalb, who shuttered Laurelwood Brewing Company's final outlet last year.
Following closures of high-profile spots including Ecliptic's flagship and Moon Room locations, Grains of Wrath, Culmination, and others, those that have narrowly escaped the chopping block are now fighting to recover lost revenue. Yet beer enthusiasts seem more inclined to grab a six-pack from the grocery store than to lounge at local pubs. "We're 30% below where draft beer sales were before Covid," Sam Pecoraro, brewmaster for Von Ebert Brewing, told the Portland Business Journal, reflecting on the post-pandemic drinking landscape.
Oregon lost an estimate of 30 breweries and taprooms, a stat backed by craft beer blog The New School among others. In a bid for survival, Von Ebert Brewing, one of the surviving players, is hoping to capitalize on the change in consumer behavior. The brewery recently announced the acquisition of Ecliptic Brewing's North Portland production facility, allowing for a quintupled production capacity and expanded market reach to neighboring states, intending to cash in on the retail trend favoring personal six-packs over pub pints.
With the shift toward off-premise drinking, Von Ebert will focus on 12-ounce cans and bottles. "Where the real volume is is the 12-ounce bottle," Pecoraro said, targeting a packaging format preferred by today's beer buyers. Their strategic pivot, driven by necessity in the wake of persistent draught beer sales decline, puts Von Ebert in a position to potentially tap into a thirsty market yet to return to pre-pandemic barstool regularity.
