DENVER (KDVR) — There are more than 400 breweries in Colorado, but that number is decreasing due to financial struggles many owners are now facing.
The Colorado Brewers Guild tells FOX31 a handful of closures are expected this year.
“Colorado’s craft breweries are navigating a challenging landscape marked by rising costs of goods, tariffs, rents, and property taxes. These increasing expenses have unfortunately led to a handful of closures this year, particularly for breweries whose leases expired under new, higher rates,” said Executive Director Shawnee Adelson in a statement to FOX31.
Adelson adds that the industry also continues to innovate and grow, with many owners seeking opportunities to open second or third locations.
“This expansion isn’t limited to larger distributing breweries like Prost and Westbound & Down. Smaller, taproom-focused craft breweries such as Old 121, Strange Craft, and SomePlace Else are also finding ways to expand their footprint across the state,” said Adelson.
The realities of a changing market and rising expenses are affecting some more than others.
“Last year was the highest grossing year ever, and we’re closing this year,” said Call To Arms Brewing Company owner Chris Bell.
The brewery is in danger of closing on December 23. Bell says the reasons behind the decline in revenue include minimum wage increases and operating expenses.
“The minimum wage has more than tripled since we opened. Our property taxes are up sevenfold since we opened,” he said.
Tariffs on materials used to manufacture cans have impacted the business as well.
“We’re not (going to) be able to absorb any increases, and also what we were really seeing is companies are doing cash grabs, so they’ll say ‘well, the tariffs are going up, but we’re not sure, so we need to charge more for cans right now.’” he said.
Restaurants have reported a 9 percent decline in transactions in one year, thinning the profit margin.
Location is another factor. Bell tells FOX31 that rapid development along Tennyson Street has affected traffic during the brewery’s most crucial days.
Loyal customers have made an effort to support the brewery and its employees.Bell says he hopes he can garner enough support to stay in business past the end of the year
Anthony Sutton is a business strategist and writer with a passion for management, leadership, and entrepreneurship. With years of experience in the corporate world, he shares insights on business growth, strategy, and innovation through management-opleiding.org.
