Layoffs Hit Craft Brewer, as Big Beer, Big Money, Overcapacity Rattle American Craft Beer Market
by Wolf Richter
WolfStreet.com
October 14, 2016
The American Beer War Turns Sour
American craft brewers have been the most spectacular economic success story since the Financial Crisis. Forget the slow-growth or sinking-into-quagmire stories typical in many other sectors. American craft brewers have become a global phenomenon, largely due to their excellent brewskis and astute marketing.
Yet total beer sales in the US have been declining for years, as major brands have been losing ground. In 2015, despite population growth, beer sales edged down another 0.2% to 196.7 million barrels, according to the Brewers Association, even as craft brewers have booked double-digit sales gains year after year, including 12.8% in 2015.
But here’s the problem with craft brewers: Everyone is now doing it. The Big Money is piling in. Private Equity firms and the largest multinational brewing conglomerates in the world are buying out craft brewers and funding new ones.
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