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Last year marked another tuff one for the US craft beer biz, down again even more than the beer and alc bev industry writ large. Amid continued challenging trends, more craft brewers are seeking partnerships and/or mergers & acquisitions to make it thru this difficult period with pooled resources as a way to mitigate costs and enhance their long-term viability with distribs and retailers. There were more hi-profile closures, bankruptcies and sales, more large strategic brewers and smaller indie brewers alike placing focus elsewhere in the alc bev/non-alc spectrum, write-downs, leadership changes and reassessments of next steps. Yet there are still many bright spots within the segment too, from legacy cos returning to growth, regional brewers consistently gaining ground, all kinds of brewers leaning into taproom growth, craft sustaining a leadership position in non-alc beer, and a plethora of innovation and choice for consumers to wet their whistles across the country. Despite craft beer's recent struggles, it still represents near 12 share of US beer/FMB/cider volume and even more of $$ all-channel, CBN estimates. Indeed, "rumors of craft's demise are greatly exaggerated," Brewers Assn CEO Bart Watson underscored at Craft Brewers Conference earlier in the yr. But craft's headwinds are very real, and "brewers are getting their sea legs in this new, challenging open water," added BA chief economist Matt Gacioch in recent post.Craft Down and Losing Share for 4th Consecutive Yr Craft beer volume is on track to decline and lose share of total beer again in 2025, marking the 4th consecutive year that's happened and its 5th down yr outta 6, we estimate. Total beer shipments down ~5% vs yr ago and craft beer is likely down 6-7%, various data and insights suggest. On track to slip ~20% below its peak volume in 2019 and down nearly 1.5 share pts. Sales were softer in tracked on-premise channels vs off-premise channels this yr. Most developed off-prem channel, grocery/food remained extra soft (-8%) while underdeveloped c-store channel outperformed (-2%) off a smaller base, per Circana data. Non-alc beer changes the picture for total craft a bit, since craft makes up 35-40% of the NA beer category that continues to post double digit growth in the US. But either way, craft beer continues to steadily lose ground.Bumper Crop of Craft on Craft Mergers The number of regional craft-on-craft deals and new entities forming ballooned in 2025. Already-established entities ramped up with Wilding Brands adding Great Divide, Upslope and Station 26, as well as Hendler Family Cos forming a unique partnership with Sloop. These are two of the biggest regional craft portfolios with Hendler Family over 100K bbls/yr and Wilding around 80K bbls/yr. Tho Wilding also began paring back/closing certain taproom locations to fine-tune ops.But many more new entities of all shapes and sizes formed, starting with one of the largest in early Jan as Mass Bay and Finestkind merged to create Barrel One and acquired Greater Good Imperial Brewing later in the year. In the Northeast/Mid-Atlantic region, B3 Beverage initially formed with CT's Two Roads and PA's Yards and Bald Birds, then added MD's Heavy Seas late in the yr, setting up as both a united platform between these brands and a broad-based contract brewing unit. In WA, wine co Ackley Brands acquired Silver City this yr after acquiring Mac & Jack's in 2023, eventually moving Mac & Jack's production to Silver City. Benchmark Beverage formed in MI with small, local cos, Brew Detroit, Altes and ROAK, while also taking a minority stake in the sizable cider/beyond beer conglomerate Blake's Beverage Co.In Northern CA, Fort Point and HenHouse merged. CO's Left Hand acquired Dry Dock Brewing as it seeks to build a total bev platform, tho closed its Aurora taproom later in the year. In TN, Memphis-based Wiseacre acquired Nashville-based Bearded Iris, seemingly breaking up previous platform, IndieBrew, with Scofflaw and Bearded Iris. DC-based Aslin acquired NYC's Torch & Crown to form Driven Collective, tho hadda close Torch & Crown's taproom later in the yr. AZ's Huss and PHX Beer formed Zonafide Beverages. In MO, Keg Holdings acquired Urban Chestnut outta bankruptcy and added O'Fallon brand to the mix too. New Triton Beverage formed in MA with Cape Cod, Hog Island and Mayflower. The list goes on and on and on and many of these entities are expected to continue adding to their mixes.US Beverage Added Notable Craft/Cider Names to Its Portfolio Led by Brooklyn; Rogue Deal Short-Lived US Beverage is making similar moves as a craft and total beverage platform, tho mostly not taking ownership stakes in the cos it's working with, instead working thru lens of its sales & marketing platform. But it added several notable craft and hard cider names to the portfolio this yr, including Brooklyn Brewery, Rogue, Evil Twin, and VT Cider. With those brands plus Uinta (the only brewer US Bev owns outright) and Captain Lawrence, US Bev has become a sizable craft player. Tho Brooklyn sells the majority of its volume internationally, it still sells 800K cases/yr in the US, mostly in the NY metro area, and quickly became US Bev's lead brand. Plus, US Bev has an array of import, FMB and spirits brands, and was expected to reach 4 mil cases/yr across its portfolio after its latest partnerships. Tho abrupt closure and bankruptcy of Rogue Ales put a bit of a dent into that total.Staple Names Filed for Bankruptcy, Shutdown and/or Sold; Many Others Closed Several established craft brewers hadda throw in the towel amid mounting declines, debt, rising costs and more. Some shockers included Rogue Ales abruptly shutting down all operations and filing for chapter 7 even after forming natl partnership with US Bev, which planned to hire most of Rogue's sales team. Multiple potential buyers looked at Rogue over the last 2 yrs, including Tilray, Great Frontier and Ackley, and opted to pass. 21st Amendment ended operations, which had morphed into a hybrid contract facility on top of own-brand sales, still seeking a potential buyer of the brand. Both Rogue and 21st Amendment once were leading craft brewers in the country with annual volumes over 100K bbls and natl footprints.Many more small brewers and facilities closed and/or sold to new owners too as 2025 marked the 2d year in a row where brewery closings outpaced brewery openings, according to Brewers Assn. Among most notable closures, Iron Hill regional brewpub chain filed for bankruptcy after closing several locations with remaining spots purchased by a hospitality vet and Three Notch'd Brewing. Sacramento's Tank 7 abruptly closed and ceased ops in June. CT's Stony Creek brewery and taproom sold to NEBCO for $6 mil. CO's Ska Brewing sold to local distrib fam, Ariano and West. OH's March First abruptly closed 3 downtown Cincy locations after ranking in Inc 5000s fastest growing indie cos the year prior. NM's Bosque closed 8 locations after its chapter 11 bankruptcy filing was denied. Hi-Wire closed multiple locations further afield tho still owns and operates 7. Barrel One ceased operations at Smuttynose's sizablebrewery and closed Five Boroughs taproom in Brooklyn while adding a Smuttynose taproom too, and still managing many brands.More Big Impairment Charges on Craft Assets from Monster, Sapporo Strategic buyers continued to write down craft assets in 2025 as initial valuations haven't panned out. Monster started the year announcing another, much larger impairment charge ($130.7 mil) on its craft assets in Q4 2024 and continued to pare back its operations later in the year too. With $138.8 mil in impairment charges in 2024 and $42.7 mil in 2023, it's written down over half of the value of its $330-mil acquisition of CANarchy, on top of several brewery closures, layoffs and leadership changes. Tho Monster's relatively undeterred as its massive energy drinks biz surged in 2025, lead beer brand Cigar City is back to growth, and co continues to bet on alc bevs including high ABV variants of Beast and Blind Lemon FMBs, two all-new high ABV beer brands and a new sessionable spirits RTD.Sapporo was the other main strategic buyer to take a big writedown on its acquisition of Stone, announcing a $91-mil writedown in late Jan, citing Stone's "sales volume and recent profit level remain[ing] below expectations." The charge "reflects a change in the timing of financial expectations compared to the beliefs held at the time of the Stone Brewing acquisition," Sapporo-Stone CEO Zach Keeling told CBN. In Q3 report, Sapporo Holdings noted that its North American beer biz is expected to decline in 2025 "with the U.S. craft beer market in particular continu[ing] to soften." And "amid this uncertain market environment, the Group will continue to closely monitor changes in consumer sentiment and respond with flexibility and appropriateness." Tho Sapporo brand remains red hot in US, on track to surpass 400K bbls this yr. Sapporo Holdings also agreed to sell its sizable real estate biz for a whopping $3.2 bil late this yr, planning to focus more on core alc bev oppys going forward.Tilray took an even bigger non-cash writedown on its biz to the tune of $1.4 bil. That's mostly related to its cannabiz, tho Tilray's been fine-tuning its brewery operations too.California Curveball: Hand Family Cos Bought Stone Dist and Classic in SoCal; Scout Too Hand Family Cos threw a major curveball in CA distribution landscape when it leapt across the country from its IL, TN footprint to acquire Stone Dist and Classic in SoCal, amounting to 15 mil cases/yr of craft beer, beyond beer and non-alc bev products. Hand Family formed new CA subsidiary Sunset Distributing and months later also acquired Scout Distribution in SoCal, adding another 1+ mil cases/yr to its mix in that territory. (Scout also sold off operation in AZ to Hensley and JV in Idaho w/ Columbia sold to Hayden Bev.)Plus, Sunset, along with other indie AB distribs statewide, managed to sign on Happy Dad, Patco Brands (Big Sipz), Good Boy Vodka and Archer Roose RTDs, plus Liquid Death non-alc bevs, among other suppliers.Garage Beer Sold Stake to Durational Capital at $200 Mil Valuation; 3 Mil Cases; Added Bill Hackett, Rich Pascucci, Pete Marino to Board A little over a year since the Kelce brothers invested in Garage Beer, co sold a stake to PE firm Durational Capital, reportedly at a valuation of $200 mil. That was the biggest beer deal of the year by far amid a slew of craft-on-craft mergers. Garage also brought in a trio of experienced beer vets to join its board of directors, former Constellation chief Bill Hackett, ex Pabst chief growth officer Rich Pascucci and former MC exec Pete Marino. That's as Garage Beer volume tripled to 3 mil cases in 2025 vs yr ago, and expects to double volume to 6 mil cases in 2026, CEO Andy Sauer told audience at our BMI Seminar in NYC.Leadership Changes Among key personnel changes in craftland, Michael Spillane stepped down from CEO at Boston Beer, leading founder Jim Koch to take on the CEO role for first time in decades. Tho Jim expects an internal candidate at Boston Beer to be ready to take over the role in a couple years, he told WSJ. Co promoted Phil Hodges to COO mos later, raising some speculation that he could be in consideration for the head seat. Tilray promoted Prinz Pinakatt to prexy of North American bevs as Ty Gilmore left the co. Bell's EVP Carrie Yunker stepped down early in the year. Dan Kenary transitioned from CEO of Barrel One to chairman, replaced by Nathaniel Davis. Both BrewDog CEO/founder James Watt and co-founder Martin Dickie departed the co. Even Sierra Nevada, which outperformed the category and had a solid year altogether, went thru a round of layoffs early in the year including some senior sales execs.Some Legacy Craft Cos Back to Growth & Select Regionals Consistently Growing While craft remained soft collectively, a couple top legacy craft brands/brewers returned to growth for the first time in many years. Dogfish beer grew volume for the first time since Boston acquired it in 2019 and Deschutes was up for the first time in a decade. AB's Elysian, Monster's Cigar City, plus sizable indie brewers like Allagash and Ninkasi returned to growth after recent dips too. There's also a collection of regional craft brewers that continue to post consistent gains in the face of broader industry challenges including: VT's Fiddlehead, HI's Maui, GA's Creature Comforts, RI's Narragansett, TX's Saint Arnold, OR's pFriem, PA's New Trail, TX's Manhattan Project, CO's Weldwerks, OR's Boneyard (Deschutes-owned), Cali Squeeze (Firestone-owned), CA's Coronado, VT's Lawson's.More Craft Brewers Entered Hemp THC Bev Space as New Bill Threatens Category's Future Outside of Dispensary Channel Many more established craft brewers outside of MN launched hemp THC beverage brands in 2025. Some of the largest to do so include: Tilray, OH's Rhinegeist and Great Lakes, MO's Boulevard and 4 Hands, GA's Creature Comforts and New Realm, IL's Revolution, WI's Lakefront, OR's Rogue, NC's Hi-Wire, FL's Funky Buddha and South Beach Brewing (featuring Rick Ross). Remarkably, after JuneShine partnered with pot-smoking country star Willie Nelson to launch Willie's Remedy THC bevs, the brand sold at a $60-mil revenue run-rate this year, JuneShine prexy Whitney Stevenson shared at Brewbound Live. Among other notable stats, hemp THC bevs account for 1/4 of MN-based Indeed Brewing sales, and OH's Fifty West hit 30K cases with Sunflower brand. So far it all amounts to relatively tiny volume but some eye-popping revenues, gross profits and earnings for those that have been able to sustain. Yet future's in flux as federal govt passed a bill that is set to ban the vast majority of intoxicating hemp products sold outside of state cannabis systems. The industry has until mid-Nov 2026 to convince legislators to delay implementation or revise regs in a way that will allow the products to stay on shelves.Cider Back to Growth This Yr; Fueled by Angry Orchard, Continued Regional Gains Hard cider grew volume in the US for the first time since 2018, scan data suggests. That's largely due to the resurgence of lead brand Angry Orchard, which saw a particular bump in late summer/early fall. But several key regional cos continue to grow too. None bigger than Blake's Beverage and 2 Towns, each now among top 25 vendors in natl Circana foodstores across all of beer/malt/cider. Schilling Cider's another sizable regional co in growth mode, getting an extra lift from non-cider brand launches. Golden State, Incline (despite battling with Schilling in court), Beak & Skiff 1911, Portland, Tieton and Stowe were among the larger fams growing nicely, and Potter&#39;s, Magners, Atlanta, Stem, Humboldt and Yonder are several more growing even faster.NA Beer Still Riding High but More Mixed Results by Co; Craft Over 1/3 of Category; Lots of New Entrants, Celebs It was a newsy year for non-alc beer with all kinds of celebrity entrants (Clooney is coming), large launch of AB's Mich Ultra Zero, continued growth of top import/international brands' NA extensions and increasing competition from the field. Yet remarkably, craft remained the largest subsegment of non-alc beer by $$ in scans, accounting for over 1/3 of sales in NIQ data. Top NA brand fam Athletic surpassed 500K bbls all-channel on its own in 2025 (including a bit of exports). Extensions from established brewers had mixed results with Sierra Nevada, Blue Moon and Deschutes climbing the ranks while Sam Adams, Lagunitas and BrewDog took backward steps, among others. Yet several indie NA brewers added to craft NA's mix too. Best Day jumped to 50K bbls all-channel, Tom Holland's Bero brand and Go Brewing gained a degree of traction and RationAle expanded capacity thru new partnership with Asahi's Octopi Brewing, to name a handful.Craft Pioneers Passed: Highland Founder Oscar Wong, New Albion's Jack McAuliffe, Redhook/Starbucks Founder Gordon Bowker A trio of notable craft beer pioneers passed away in 2025. In May, Highland Brewing founder Oscar Wong, regarded as "the godfather of Asheville craft beer," passed away at the age of 84, over 30 yrs after first opening the brewery in 1994. In July, New Albion co-founder Jack McAuliffe passed away at the age 80, known for starting the "nation's first post-Prohibition microbrewery built from the ground up" back in 1976 in Sonoma, CA, as National Museum of American History noted. And Gordon Bowker, the pioneering co-founder of both Redhook Brewery and Starbucks Coffee, died at the age of 82.

Craft Year in Review - 2025

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