Just read this Forbes article on the explosive number of breweries now in the USA. Are we really now at 9,000+ breweries as stated in the article?! Link to article below.
I have definitely noticed the growth over the past few years. I think the real questions are “Can 9,000+ breweries even be sustainable in the market place?” and “Are we creating our own craft beer bubble to pop soon with this growth?”.
Most new breweries I see are carrying tons of debt and seem to have excess, unused capacity in the brewery...looking like they just borrowed huge loans to spend on a brewery that can produce more beer than they can even sell. Get another economic downturn and I think a good number of these breweries won’t survive. The beer can be great but if it’s made because of huge bank loans one little hiccup like a recession, raw material disruption, or having another 100 breweries within 1 hour driving distance all fighting for the same customers can pop a bubble.
Too many breweries? Reaching danger levels of market saturation? There’s nothing to worry about and we can add another 1,000 breweries next year without a problem? Thoughts???
I have definitely noticed the growth over the past few years. I think the real questions are “Can 9,000+ breweries even be sustainable in the market place?” and “Are we creating our own craft beer bubble to pop soon with this growth?”.
Most new breweries I see are carrying tons of debt and seem to have excess, unused capacity in the brewery...looking like they just borrowed huge loans to spend on a brewery that can produce more beer than they can even sell. Get another economic downturn and I think a good number of these breweries won’t survive. The beer can be great but if it’s made because of huge bank loans one little hiccup like a recession, raw material disruption, or having another 100 breweries within 1 hour driving distance all fighting for the same customers can pop a bubble.
Too many breweries? Reaching danger levels of market saturation? There’s nothing to worry about and we can add another 1,000 breweries next year without a problem? Thoughts???
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