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Labor Day Fun: Why craft brewing businesses rarely fail (and why they are tough work)

September 4, 2015Chris Crowell

brewery business
Brewers have to do some serious labor to get things running, but once they do, brewing is one of the best industries to be in right now.

Maybe this isn’t your traditional Friday Fun story, but seriously: Breweries rarely fail. Hooray! That’s pretty fun, right?

Obviously some breweries fail. The number of brewery closings the Brewers Association announces every year usually comes in around 40, which is nothing to gloss over, but when the number of openings each year is now over 1,000, you can see why the folks at Entrepreneur magazine would put the brewery failure rate at “near zero.”

The aforementioned Entrepreneur gave a nice look into why this is the case. You no doubt know some of the reasons: decent margins, early sales, not a ton of barriers to entry and, really, it’s just a booming market with a ton of interest. People want quality local products, they want an experience and they want to drink. Craft beer covers all the bases.

Everyone is writing puff pieces about craft beer these days. And, in the spirit of Labor Day, it was nice that this post from Entrepreneur looked at the flip side of this success: Hard [email protected]#$ing work. Sure, breweries are opening everywhere and staying open, but that’s also in large part to the insane dedication of the individuals that start them. Brewers aren’t just business school grads with get-rich-quick schemes. No, brewers (the best ones at least) do it because they love it, and as Entrepreneur points out, you have to feel this way to really make it work. The barriers to entry the magazine noted:

  • The price of success is brutally hard work, long hours and low pay.
  • Low-capacity starter brewhouses often require owners to brew beer around the clock—many even sleep at their breweries.
  • New brewers “sewer” a lot of product as they struggle to produce consistently high-quality beer.
  • When sales lag, new brewers cut their own pay first.
  • Competition for staff is intense, forcing new brewers to do many jobs themselves.
  • Passion for making beer keeps craft brewers toiling away longer than most entrepreneurs. Often they aren’t succeeding so much as refusing to fail.

So we say, this Labor Day, find some time to raise a pint to yourselves, craft brewers. The success of this industry didn’t happen by accident. You guys and gals helped will it into existence. So, a big “cheers!” from all of us nonbrewing hacks out here who get to reap the benefits.

(But seriously, just the one pint. Then back to brewing, please.)

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Comments

  1. BrewandCovered says

    September 8, 2015 at 4:06 pm

    Brewers have to do some serious labor to get things running, but once they do, brewing is one of the best… http://t.co/dyJvksJCA8

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  2. brewerysoftware says

    September 8, 2015 at 2:03 pm

    1000+ breweries open a year and only 40 close… what makes #CraftBeer so successful? http://t.co/uwZLwHGD4F #OBeer

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  3. BensBottleShop says

    September 8, 2015 at 1:26 pm

    RT @NewSchoolBeer: Why craft brewing businesses rarely fail (and why they are tough work) http://t.co/xaWcz2aAEE

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  4. NJWineandBeer says

    September 8, 2015 at 1:00 pm

    RT @Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http:/…

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  5. NewSchoolBeer says

    September 8, 2015 at 11:28 am

    Why craft brewing businesses rarely fail (and why they are tough work) http://t.co/xaWcz2aAEE

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  6. oliiolive says

    September 7, 2015 at 7:25 pm

    RT https://t.co/yBBRdJ6F6P kyleneal3: RT Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally h… http://t.co/iUuhCF0wxE

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  7. kyleneal3 says

    September 7, 2015 at 7:14 pm

    RT @Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http:/…

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  8. KCHopTalk says

    September 7, 2015 at 3:14 pm

    Why craft brewing businesses rarely fail and why they are tough work http://t.co/V13FrADiwx

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  9. TBCBeerClub says

    September 7, 2015 at 12:03 pm

    A little perspective on this Labor Day. Thank you #craftbrewers for putting in the time to give us the tasty… http://t.co/Gd2vbPr5LF

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  10. reuman says

    September 7, 2015 at 11:44 am

    Why craft breweries rarely fail (and why they are tough work) http://t.co/0Ub7apwxJY

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  11. BarrelHousePS says

    September 7, 2015 at 10:39 am

    RT @CaptainCheers: Why craft breweries rarely fail (and why they are tough work) http://t.co/EQjH8PlQHX

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  12. kennedy_ron says

    September 7, 2015 at 10:11 am

    RT @CaptainCheers: Why craft breweries rarely fail (and why they are tough work) http://t.co/EQjH8PlQHX

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  13. PyotrSidwell says

    September 7, 2015 at 10:11 am

    RT @CaptainCheers: Why craft breweries rarely fail (and why they are tough work) http://t.co/EQjH8PlQHX

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  14. TwistBarrelAle says

    September 7, 2015 at 10:07 am

    RT @CaptainCheers: Why craft breweries rarely fail (and why they are tough work) http://t.co/EQjH8PlQHX

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  15. CaptainCheers says

    September 7, 2015 at 10:05 am

    Why craft breweries rarely fail (and why they are tough work) http://t.co/EQjH8PlQHX

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  16. CJSCHMID says

    September 6, 2015 at 11:35 am

    RT @Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http:/…

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  17. pantskipants says

    September 6, 2015 at 11:03 am

    RT @Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http:/…

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  18. Rideandbrew says

    September 6, 2015 at 11:02 am

    RT @Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http:/…

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  19. Jaredbrewsbass says

    September 6, 2015 at 10:54 am

    RT @Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http:/…

    Log in to Reply
  20. CSmith466 says

    September 6, 2015 at 10:49 am

    RT @Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http:/…

    Log in to Reply
  21. Gundyn says

    September 6, 2015 at 10:42 am

    RT @Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http:/…

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  22. upstatebrewing says

    September 6, 2015 at 10:41 am

    RT @Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http:/…

    Log in to Reply
  23. BeerAgentUKSean says

    September 6, 2015 at 10:33 am

    RT @Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http:/…

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  24. JMIheartBeer says

    September 6, 2015 at 10:19 am

    RT @Cizauskas: The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http:/…

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  25. agoodbeerblog says

    September 6, 2015 at 10:08 am

    @Cizauskas @CraftBrewingBiz Any publication of the “low pay” evidence? Also, low staff pay? Breweries are generally rewarding financially.

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  26. Cizauskas says

    September 6, 2015 at 10:04 am

    The price of a start-up ‘craft’ brewery’s success? Brutally hard work, long hours, and low pay. Via @craftbrewingbiz: http://t.co/Qmxs8Z3nq5

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  27. Ed Griffith says

    September 5, 2015 at 6:21 pm

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  38. ThreeBeardsBeer says

    September 4, 2015 at 6:32 pm

    RT @NwExtract: RT @crsimp01: Why craft breweries rarely fail (and why they are tough work) http://t.co/RRY1jZrM1P via @craftbrewingbiz

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  49. NwExtract says

    September 4, 2015 at 5:20 pm

    RT @crsimp01: Why craft breweries rarely fail (and why they are tough work) http://t.co/RRY1jZrM1P via @craftbrewingbiz

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  50. Allikwall says

    September 4, 2015 at 4:28 pm

    Why craft breweries rarely fail (and why they are tough work) http://t.co/4bNqbHgPGq

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  51. Dana Roberts says

    September 4, 2015 at 3:55 pm

    Thank god most don’t fail! Must have good beer!!

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    • Mic Heynekamp says

      September 4, 2015 at 9:32 pm

      I wonder how many failures aren’t even failures? We expanded but wanted to keep both licenses active until the new facility was up and running smooth. In their closings and openings they reported our opening (new license) and then closing (when retiring old license).

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      • Chris Crowell says

        September 5, 2015 at 11:40 am

        It’s a great point, Mic. The BA might have more details on each closing that would separate the actual “failures” versus a situation like yours, or a retirement, or whatever else. Maybe something to look into more closely.

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  59. USbevX says

    September 4, 2015 at 3:38 pm

    RT @CraftBrewingBiz: Labor Day Fun: Why craft brewing businesses rarely fail (and why they are tough work) http://t.co/0yKHsglSfM

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  60. Karen Hood Grass Williams says

    September 4, 2015 at 3:29 pm

    Well, I know of one such brewery that definitely falls into this category……”you have to love it” in order to make it work is right on the money! Grasslands, here’s to you: Prost!

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    September 4, 2015 at 2:33 pm

    RT @CraftBrewingBiz: Labor Day Fun: Why craft brewing businesses rarely fail (and why they are tough work) http://t.co/0yKHsglSfM

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  67. LVRGLLC says

    September 4, 2015 at 2:17 pm

    #CraftBeer #CraftBrewing #Beer #BeerBiz Labor Day Fun: Why craft brewing businesses rarely fail (and why they are … http://t.co/csuX9QWXcu

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    September 4, 2015 at 1:47 pm

    RT @crsimp01: Why craft breweries rarely fail (and why they are tough work) http://t.co/EUCzminmd3 via @craftbrewingbiz

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  74. zymergy2 says

    September 4, 2015 at 1:44 pm

    RT @crsimp01: Why craft breweries rarely fail (and why they are tough work) http://t.co/EUCzminmd3 via @craftbrewingbiz

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    Why craft breweries rarely fail (and why they are tough work) http://t.co/EUCzminmd3 via @craftbrewingbiz

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  80. Danny Danny says

    September 4, 2015 at 1:09 pm

    Does the Brewers Association interview the 40~ companies that fail and ask what they think caused the failure, what they would have done differently, or if the closures were simply due to retiring/reorganizing/moving

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    • Chris Crowell says

      September 5, 2015 at 11:38 am

      I feel like they usually do have an idea as to what happened to the breweries that closed, but honestly don’t know. Good question. Definitely something to look into.

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