Trouble brewing: Local breweries adapt to a new, locked-down world – The Recorder

Ray Berry had planned to open his new taproom and brewing facility in downtown Springfield in May. His White Lion Brewing Co. hes president of the operation had been contract-brewing its beers in Ipswich and Williamsburg since its launch in 2014, and the new Tower Square location was under full-bore construction last month.

But even the best-laid plans are on hold in the time of coronavirus.

When I caught up with Berry a few days ago, he shared that uncertainty. One day at a time, were the first words he offered. Thats all we can do.

Construction continues, but not at the aggressive pace of a few weeks ago. Brewer Mike Yates was recently on site doing some plumbing work, Berry says, but youre not seeing eight or nine employees in there anymore; its one or two.

Because of the economic downturn and the evaporation of on-premise beer sales which makes up 38 percent of White Lions portfolio the company has laid off two of its seven full-time employees, and moved the remaining five employees to part-time.

The original plan for a May taproom opening is probably out the window, Berry says. Realistically, theres no rush on my end. No one wants to have a brand new facility open when there are restrictions in place about coming in to enjoy it.

Across the craft beer market, this new reality is sinking in. According to a mid-March survey conducted by the not-for-profit Brewers Association to which nearly 1,000 American breweries responded 99 percent of the countrys craft breweries have been substantially impacted by the spread of the coronavirus and the disease it causes, COVID-19.

The numbers arent pretty, writes Bart Watson, the associations staff economist. Because so many breweries sell a high percentage of their beer through their taproom or brewpub, and draught sales make up roughly a third of craft production, the rapid shuttering or restriction of breweries, bars and restaurants has drastically cut short-term cash flow as well as production in the medium-term.

Watson also points out that the cancellation of live events at breweries creates an additional pain point for these businesses. Although concerts, private parties, craft and trivia nights, and other space rentals have commonly helped to smooth over periods of slow beer sales, the closing of that revenue stream has compounded the problem.

The result: 95 percent of respondents project their year-over-year beer sales to decrease in April. Roughly 60 percent have slowed their brewing schedule, and 28 percent have hit the stop button completely on production. About 61 percent of respondents anticipate layoffs, and another 28 percent are unsure of the staffing decisions they will have to make.

This is not, of course, just an American problem. German independent brewers say theyre losing up to 90 percent of sales across Berlin. In late March, Australian brewers warned that extensive shutdowns would deplete the countrys supply of beer within a few weeks. And Irelands craft breweries, which rely heavily on a thriving pub scene, are similarly struggling with a catastrophic drop in demand as borders and bars have closed.

Nor is this just a small business crisis. Anheuser-Busch InBev, the worlds largest brewer, is forecasting its worst quarter in a decade due to the coronavirus (and is now shifting a chunk of its efforts to the production and charitable distribution of bottles of hand sanitizer). Many distilleries small and large, including Bacardi, are now focusing on making ethanol and alcohol-based disinfectants.

Even craft breweries of a certain size can add systemic support. Samuel Adams launched its Restaurant Strong Fund on March 18, in partnership with the Greg Hill Foundation, to support restaurant workers. In its first week, the fund had raised nearly $500,000 in individual donations, all of which has now been distributed. Sam Adams will look to expand the funds reach over the coming weeks to support restaurant workers in 19 additional states.

Closer to home, Valley brewers and brewery owners have needed to quickly find ways to adapt their plans to a sea change in the economy and strict state measures that discourage in-person sales and gathering in groups not to mention bottlenecks in the supply chain (the 32-ounce aluminum cans called crowlers, for example, are largely on back order).

The local beer CSA Stoneman Brewery, which owner Justin Korby has been hoping to move off his Colrain property and into a larger space at the Warfield House Inn in Charlemont this spring, launched anonline fundraising campaign on March 11. Hours later, stocks plunged, and the Dow Jones Industrial Average ended that day in a bear market.

Korby pivoted quickly. Over the next two months, Stoneman will focus on fundraising for a side project that Korby developed and designed this winter: a portable trailer that can be towed and set up quickly as a pop-up bar, for flexible use at beer gardens and festivals. Stoneman also continues to contract-brew locally, which means Korbys beers are still available at grocery and package stores.

As long as Im open to the public and selling beer somewhere, Ill be able to keep my business alive, Korby told the Greenfield Recorder in late March. He pointed to the motto printed on the back of his cans of Warfield Dream IPA: Victory is surviving long enough to tell ones tale.

Many local breweries have converted their on-premise sales into a system of pre-order and curbside pickup. When a family member of mine was craving some In Absentia, an IPA produced by Brick and Feather Brewery in Turners Falls, he was pleased to discover that the company had quickly made this transition.

He reserved several four-packs of canned beer, paid online, then picked up his order that afternoon, making minimal contact with the staffer seated behind a table in the brewerys entryway. Craft beer fans who want to support small businesses (and, really, who doesnt?) can find similar updates on local breweries social media accounts, which seem to be more active than ever.

Craft beer also survives thanks to its symbiosis with bars and restaurants, virtually all of which are hurting. Gov. CharlieBaker introduced a bill in late March that would allow for restaurants with current liquor licenses to sell closed containers of beer and wine alongside meals ordered for takeout and delivery a measure that several states, including Connecticut and New Hampshire, have already adopted. The Massachusetts House and Senate passed the bill last Monday.

But for many bars and restaurants, that wont be enough to ward off the possibility of permanent closure. Although $2 trillion of federal stimulus money will help small and independent breweries with loans and forgiveness programs, the hard fact remains that roughly 55 percent of American craft beer is sold either on draft or at the brewery itself. For now, that majority slice of profits is gone.

The Peoples Pint in Greenfield has been closed since mid-March. Although the brewery continues to produce canned beer, the restaurants indefinite hiatus and the resulting layoffs in the bar and front-of-house staff have left a deep mark, says brewery manager Chris Sellers.

Theres no way to gloss over the difficulty that were feeling, he says, adding that the Pints on-premise sales have always contributed the bulk of its profits. Its really hard to say to our family of employees: We dont know where this is going to go.

The brewery is currently operating on a skeleton crew and setting strategies week by week.

Fortunately, package stores remain open, Sellers says, and its exciting to see that people are still buying our beers wholesale. Its a small but significant percentage of our revenue, so we dont have to put a full stop to everything.

The Pint is seeing an outpouring of encouragement online, Sellers says, which helps his crew move forward. Craft breweries have never worked on a one-size-fits-all model, he says. Even before this happened, Ive seen so many different versions of successful business plans for breweries. But this will definitely shift a growing industry. Business plans and outlooks have to evolve.

At Amherst Brewing, the majority of sales have typically come from draft pours at the brewery and its several Hangar Pub and Grill locations around the Valley, says head brewer Caleb Hiliadis.

Now, were adjusting to a package model, he says. Pretty much everything is going into cans, and we have as much of it going to package stores as possible. Thats been a big shift for us. I feel for every restaurant right now.

Brewing, by nature, requires weeks of planning. We want our beer to be fresh all the time, Hiliadis says. But is our distributor going to take it next week? You cant be sure. And a lot of package stores are just trying to run through their inventory, which means they arent buying a lot in. Everything is fragile.

As a result, Hiliadis is doing his best to play it a bit safe.

We have a new experimental hoppy beer out, he says, but were not introducing a lot of new beers at the moment. Were just trying to make a good product that people can enjoy in trying times. And when we reopen, Id prefer to start with a little less beer than normal, rather than make too much and just be sitting on it.

Its tough to have to switch lanes all of a sudden, he adds. But in craft beer, everyone always tries to stay nimble. Its not like you can predict everything. But our industry changes all the time. So, weve always had to think: what if? Thats the reality for everyone now.

This is why Sellers at the Peoples Pint is encouraging people to locate the brewery nearest to home, and go buy their beer.

A lot of breweries really rely on their taproom business, and I worry that if were not supportive now, some will struggle to survive after this, he says. We want this community to come out of this strong. And maybe people can step outside the box a little bit and try something new from a brewery that they havent had before.

Were a strong micro-economy in the state, and were able to be fairly flexible, he adds. Thats what keeps me confident about the Massachusetts beer industry. In all my travels, talking to brewers, Ive seen that its such a resilient, creative, awesome group of people. If anybody can shift gears quickly and come up with a cool solution to a complex problem, its the beer business.

The Beerhunter appears monthly. Contact Hunter Styles at hstyles@valleyadvocate.com.

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Trouble brewing: Local breweries adapt to a new, locked-down world - The Recorder