Oregon's craft brewing scene is facing a sobering reality, with a decline in draft beer sales and an increasing number of closures leaving a bitter taste in the industry's mouth. Last year was particularly rough, as the state saw the shuttering of around 30 breweries, as reported by OPB. Industry experts are attributing this downturn to shifting consumer preferences and the pandemic's long-lasting impact on drinking habits.

According to the Oregon Brewers Guild, the state's near 400 breweries, brewpubs, and taprooms used to be a booming sector, providing around 50,000 jobs and generating nearly $9 billion in economic output. However, these businesses are not just battling a pandemic hangover, but are also contending with competition from canned cocktails, seltzers, and nonalcoholic beer options. Sonia Marie Leikam, the co-owner of Leikam Brewing and vice president of the Oregon Brewers Guild, told OPB, "Those make up now about a third of our sales. They are lower profit margins for us, and that impacts our bottom line."

Establishments are getting creative to attract customers, with Leikam explaining, “We also are spending just a ton more time and energy creating events,” she said. “So we now have crafting classes and a book club and comedy nights. Really anything that the community wants, we offer our space for those activities to drive folks into the tap room.”

Despite an initial uptick in business post-lockdowns, establishments like Laurelwood Brewing Company, have watched profit margins vanish as consumer habits have shifted towards the convenience of delivery services and online orders. In a statement obtained by The Drinks Business, Mike De Kalb, owner of the now-closed Laurelwood, pointed that the issue mounted after people got used to “streaming services, DoorDash, Uber Eats” and ordering things in during the pandemic. Essentially, consumer habits changed. 

Leikam remains hopeful yet realistic, recognizing the significant role the alcohol industry plays in Oregon's economy and urging locals to support their neighborhood breweries. "Make that extra stop. If you’re going to buy beer, buy it directly from a brewery tap room or a bottle shop," Leikam urged in her interview with OPB. As breweries pivot and tackle the challenges ahead, it's clear that the resilience of Oregon’s craft brewing industry will be tested.