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Big Minnesota barley dip signals possible ‘beer bust’ ahead

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Published  December 6, 2024 5:20pm CST
Business
FOX 9

Brewery business declining in MN

Once a fruitful industry, Minnesota’s microbrewery business have seen a sharp decline in recent years. FOX 9’s Corin Hoggard explains.

The Brief

    • Barley production fell 56% in Minnesota in 2024, signaling a possible beer bust.
    • Beer production was down 5.1% in 2023, hitting hardest at big companies like Anheuser Busch and Coors. Craft breweries were down a little, but nearly steady.
    • In Minnesota, urban craft breweries saw a sharp, 15.6% decline. Suburban breweries lost a little, and rural ones were up 9%.

MINNEAPOLIS (FOX 9) - A massive dip in barley production this year points to potential problems in the beer business.

Minnesota is one of the leaders in craft beer and some competitors have faded away in the last couple of years, while others are reaching into the THC market to boost their bottom line.

Beer bust? 

Minnesota barley farms produced less than half as much in 2024 as the year before, signaling potential trouble ahead.

Seltzers, hard liquor, and non-alcoholic drinks are being poured into glasses, kegs, and tanks once filled with beer.

Declining sales are hitting hardest at traditional big beer makers like Anheuser Busch and Coors.

Urban craft upended

Craft brewers are mostly steady, but they’re not immune to trouble.

"Most Minneapolis breweries, it's rare that they get a parking lot," said Eric Biermann, president of Inbound BrewCo. "It's a little more hassle to get to."

Biermann says staying in business in Minneapolis can be expensive. 

Eastlake Brewing and Lakes & Legends recently closed, and Dangerous Man left its northeast taproom.

But Biermann doesn’t see his neighbors as competitors.

"To build up craft beer in the North Loop – we do it together," he said. "We don't do it alone."

Still, production from urban Minnesota breweries dropped sharply last year, down more than 15%.

Suburban breweries fell off a little, while rural production climbed.

"We didn't have as many breweries in many rural areas," said Bart Watson, a VP for the Brewers Association. "So I think breweries might be seen a little bit more green space there and more opportunity to still grow as they introduce that to new people."

THC lifeline

Minneapolis spots like 56 Brewing have turned to THC to make more money in a new market.

Their focus is still on making good beer, but THC drinks, pinball, and fun stuff on stage help them build on a business that’s still going well.

"It really comes down to making a taproom accessible to everybody, having options, THC options – being family friendly, dog friendly," said 56 Brewing's head brewer Zach Euler. "It's really just about like crafting community."

One more possible reason for a barley drop off? IPAs are dropping in popularity, while pilsners and seltzers are growing, and they use less barley.

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