BleedGopher
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Per Axios Twin Cities:
Craft brewing's skyrocketing growth over the past decade in Minnesota has finally come to a halt as the industry sorts out a new normal.
Why it matters: According to the Brewers Association, craft breweries had a nearly $2 billion economic impact last year in Minnesota, and the boom has brought taprooms to urban neighborhoods, suburban strip malls and rural main streets.
Yes, but: Consumption in Minnesota is falling. It peaked from 2016 to 2018 and has been declining since then.
Data: Minnesota Department of Revenue. Chart: Axios Visuals
What's happening: Breweries are feeling the pinch from increased competition, rising labor and ingredient costs, and the surge of seltzers and canned cocktails.
Craft brewing's skyrocketing growth over the past decade in Minnesota has finally come to a halt as the industry sorts out a new normal.
Why it matters: According to the Brewers Association, craft breweries had a nearly $2 billion economic impact last year in Minnesota, and the boom has brought taprooms to urban neighborhoods, suburban strip malls and rural main streets.
Yes, but: Consumption in Minnesota is falling. It peaked from 2016 to 2018 and has been declining since then.
Data: Minnesota Department of Revenue. Chart: Axios Visuals
What's happening: Breweries are feeling the pinch from increased competition, rising labor and ingredient costs, and the surge of seltzers and canned cocktails.
- "The hard part for craft brewers right now is the ever-changing tastes of the consumer and what people are actually drinking," Bob Galligan, director of government and industry relations for the Minnesota Craft Brewers Guild, told Axios.
- When the state legalized THC seltzers a year ago, craft breweries quickly began making the beverages, which are rapidly gaining popularity here.
- Those seltzers, industry experts say, have high-profit margins, but that could change with more competition.
- Brewers, though, are still trying to get a grasp on how big of a market there will be for those beverages.