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Total alcohol volume (not just beer) declined 5% in 2025, "a dramatic shift" that "I don't think we've really ever seen at that scope or scale," said Brewers Assn CEO Bart Watson in his address to CiderCon members in Providence, RI on Wed. He asked folks to "pause" and take in the "radically different" mkt dynamics that have taken shape just recently as this unprecedented decline took place. From consumers thinking and acting "radically different," retail and (especially) distribution landscape becoming "even more consolidated," with "way more of that" likely to come, and economic and political landscape "reshaped dramatically," there's been "a sea of change going on." And "I think it's fair to say" that "while some companies are still thriving in this environment&hellip;the beverage alcohol industry was not prepared for this level of change and has not responded quickly enough to keep up with all of those changes to keep volumes where they are."But "for the vast majority of you in this room, it probably shouldn't matter," Bart stated. Taking a glass-half-full perspective, even with "pretty much&hellip;the most negative scenario possible for beverage alcohol," the category was down just 5%, nowhere near a "collapse." Just something we have to be "aware of" and "adapt to," said Bart. Hard cider has been bucking the trends lately and BA estimates that 45% of indie craft brewers still grew last yr, even in a challenging environment overall.Among the 3 big drivers driving consumption habits in bev alc &mdash; flavor, variety and company & product values &mdash; flavor and variety is becoming less of a differentiator nowadays and it's tuff for smaller cos to keep up with the pace of innovation and pricepoints. But smaller cos can innovate faster and more uniquely, and are "way better suited" to keep up those efforts long-term, Bart figures. And they can "compete radically" on that 3d dimension surrounding "values," from how brands are produced, how the company is run, what you stand for and how you communicate "your point of differentiation." "That's the future for all small producers in the next few years," to "figure out how they tell" consumers what "drives radical difference for them." Bart urged cos to really find that out for themselves while also embracing the close-knit community of indie craft brewers, cidermakers and beyond. "Leverage the joint power of communities" because "we need each other more than ever."BA Model Was "Great" but "Static"; "Can't Stand Pat When the Winds of Change are Swirling" There are a lot of parallels between Brewers Assn and American Cider Assn, Bart pointed out during Q&A with ACA CEO Monica Cohen. As Bart stepped into the CEO role, he took on an org with "a great model," but "it was static," he commented. "You can't stand pat when the winds of change are swirling," so Bart and co are "questioning what we do" to make meetings "as relevant as possible," thru the lens of "education, networking, commerce and fun." Org's more focused on moving faster to find ways to drive costs down for its members as that's their biggest pain point these days, and BA plans to "introduce bills&hellip;that will try to do that." He also pointed to Tomme Arthur/Lost Abbey as a great example of a company that pared back distribution and offerings, creating a "healthier model" that's much more focused. And while brewers continue to test the total beverage "concept," cider's "certainly one of those" beverages that's finding its way on more taproom offerings. "If cider's pulling, you'll see expansion" there, he commented. Ultimately, there are a lotta oppys to share educational resources, collab on policy issues that overlap and broader challenges for small suppliers like increasing COGS, market demand and market access.

BA's Bart Reflecting on "Radically Different" Mkt, Total Bev Alc Down ~5% in 2025; Optimistic on Smaller Cos Differentiating Thru Flavor, Variety, Values

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