‘Perfect storm’ of challenges creating tough headwinds for local breweries

Katie Stinchon says there are many factors creating the “perfect storm” clouding over local craft brewing companies. Whether it is inflation, looming tariffs or fewer consumers, one thing is certain: local breweries are getting hit.

Stinchon is the executive director of the Mass Brewer’s Guild (MBG), an organization dedicated to promoting craft brewing in the commonwealth and advocating for the Legislature to help breweries.

“What’s happening here in Massachusetts, we’re seeing mirrored nationally as well,” Stinchon said. “We’re seeing brewers merging together or being acquired as a way to survive or pull resources. We’re seeing a really large interest in low ABV (alcohol-by-volume) and non-alcoholic alternatives and we’re also just seeing a huge slow down for our industry as a whole.”

When the MBG launched in 2007, there were 34 brewing licenses issued in the state. Today, there are more than 200 operating breweries across the commonwealth. Stinchon said the brewery boom took off in the early 2010s thanks to advances in Legislature making brewery permitting more accessible. For example, the state passed the Farmer Series Pouring Permit in 2013, allowing taprooms to operate without the need for additional restaurant or bar licenses.

While the increase in breweries was great for the market, Stinchon said it is starting to saturate, with several breweries closing over the past few years, specifically smaller craft brewers.

“There’s just a lot out there in the market right now so there’s not one answer there, it’s many things …,” Stinchon said. “We’re going to see a shakeout of some breweries in the next few years that can’t make the numbers work.”

According to the Brewers Association, a national organization supporting breweries across the country, closings are outpacing openings. The number of craft breweries operating in June 2025 — 9,269 — was down 1% from the number operating in June 2024 — 9,352. The smaller distribution-focused microbreweries experienced the largest drop-off at roughly 3%, followed by taprooms at 1%, and brewpubs and regional breweries with no change year-over-year.

Sam Dibble, who owns New City Brewery, said he opened the Easthampton business a decade ago because of the excellent water quality in the city. As the brewery approaches its 10-year anniversary next month, Dibble says they’ve had great success in that timespan. But he notes that as New City heads into its second decade, the business is facing many of the same head winds as others in the industry — inflation has made it more costly to brew, and tariffs on packaging materials and certain ingredients are also adding to the production expenses.

“No doubt this is a marketwide issue,” Dibble said. “Ingredient and packaging material prices are going up because of Trump’s tariffs. You’re going to see more expensive beer.”

In February, President Donald Trump announced an additional 25% tariff on imports from Canada. Dibble said aluminum is the biggest packaging material that has increased in price, as New City imports cans from Canada. Additionally, the brewery is paying more to import grain because of the tariffs, though Dibble said New City tries to buy as much grain as it can from local sources.

While increased costs from tariffs have began hitting local breweries, Stinchon said the worst is still to come. “Tariffs haven’t really hit the doorstep of our brewers yet but we are anticipating a price increase in the next three months or so,” she said.

Dibble said multimillion dollar companies have their own supply chains, so they are able to produce packaging materials, but he has heard other local, smaller breweries that import share similar struggles.

People that keep buying local are the real heroes

Sam Dibble

Stinchon said the MBG encourages local restaurants to serve drinks from local breweries. She said one of the issues is many local restaurants buy alcohol from larger companies rather than local breweries.

“If you go to your local restaurant and you look at the draft line-up, how many of those beers there are local?” she said.

Additionally, she has seen larger New England companies start to “dominate” the market. She said it is good to see these breweries succeed, but it takes revenue away from smaller breweries.

Consumption drops

While market trends have been making an impact, there has also been a general decline in alcohol consumption.

The decline in consumers mainly started after the COVID-19 pandemic. Stinchon, Dibble and Dan Kramer, co-owner of Element Brewing Company in Millers Falls, have observed this trend.

“The market has significantly changed since COVID,” said Kramer. “I think it’s largely attributed to a couple of changes but mainly COVID … There’s several things happening, overall alcohol consumption is down and I attribute that to overindulgence during the pandemic.”

Kramer feels the market has been challenged by another product increasing in popularity.

“Another thing that has affected the alcohol industry is legalized marijuana. I think younger ages are drinking less because they are using marijuana more,” he said.

Stinchon agrees that the increased use of cannabis products has negatively affected the alcohol industry, especially among younger generations. “The younger Gen Z generation is not drinking as much,” she said.

While Kramer has seen an overall decline in consumption, Element is still experiencing success and is planning an expansion to South Deerfield as a way to tap into more customers. In 2009, Element, which Kramer owns with Ben Anhalt, originally opened in a small space in Millers Falls before quickly moving down the street to a larger location.

According to Kramer, there has been more favoritism toward the taproom model instead of the distribution model, which has become more costly. In a taproom model, customers come to sit down and have drinks. A distribution model focuses on making sales to stores and restaurants.

Through the state’s permit legislation in 2013, customers can sit down and have a pint rather than just coming to taste smaller portions and buy a pack. When Element first opened in 2009, they were not focused on a taproom model since it was more difficult to open. With their expansion, Kramer and Anhalt are hoping a more populated location in Deerfield using the taproom model will be a hit.

In Florence, Drawing Board Brewery co-owner Corey Lynch has also seen less presence from younger generations. “We definitely aren’t seeing as much of the younger generations … we’re kind of seeing the millennium and above range,” Lynch said.

Drawing Board is run by Corey and his wife, Tonka Lynch, opening in Florence right after the pandemic ended, wanting to open an inclusive space for the community. They have started to see increased prices for aluminum cans and other packaging materials but not as much for their grain.

“The thing that we have seen the most significant increase in is packaging, so aluminum cans for packaging, but we have not yet seen any major increases to our grain prices but that’s partially because we source as locally as possible,” said Corey Lynch.

When asked about increasing prices for brewing ingredients he said, “From the whispering I’ve been hearing, I do fully expect that those prices are going to go up.”

Despite increased prices, Lynch said he has seen a steady increase in business since opening. Despite market changes, many breweries throughout the Valley have seen success in their communities.

“If you want your local brewery to stick around, please get out there and support them because they need it now more than ever,” said Stinchon.

While New City and Dibble have had hard times over the years, there are two reasons he has stayed in business.

“Number one, we have certainly struggled over the years but our local community has our back and has been the thing that has sustained us, so we are very grateful for our local community,” he said. “Two, Massachusetts has a pretty awesome brewery and brewing culture so without those things we wouldn’t be open … people that keep buying local are the real heroes.”