WHY’S THE BEER GONE? Craft Distilleries Fight for Survival Amid Crushing Regulations.
Things are far from hunky-dory in the world of craft distilling. The COVID-19 pandemic unsurprisingly knocked the industry back on its heels, as distillers were forced to close for a time, delay or cancel expansion plans, and furlough large swaths of their work force. Many also nobly transitioned to making hand sanitizer to help with the national shortage, and for their sacrifice, they received years of harassment from the Food and Drug Administration.
Like a boxer staggering in the ring, the craft distillery industry at first appeared to weather the blow—and even continue growing—post-COVID. Now it faces another potential knockout. Not only are alcohol sales declining generally in America as younger generations show increased interest in low-alcohol and nonalcoholic drinks, but the growth rate in the number of craft distilleries fell to 2.4 percent in 2023—down from over 17 percent growth the year prior.
While some blame market saturation for the sudden shift, a closer look reveals burdensome laws and regulations are the predominant culprits.
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