The California Craft Brewers Association (CCBA) released initial results from an industry survey on the impact of statewide shutdowns on craft breweries, and the results aren’t pretty.
The majority of craft breweries sell all or most of their beer through their brewery and direct to their communities, not through third parties like grocery stores. CCBA survey respondents sold an average of 50 percent of beer through the brewery tasting room with an additional 20 percent through bars/restaurants.
This means 70 percent of all sales are dramatically impacted by COVID-19 shut down orders across the state.
Below are the highlights from CCBA’s survey of more than 230 brewery owners across California:
- 99 percent of CA craft breweries are negatively impacted by the COVID-19 crisis & “stay at home” orders by local and state governments
- Breweries are currently experiencing an average of 43 percent DECREASE in overall sales
- 29 percent of respondent’s total workforces have been laid off and additional 31 percent furloughed
- 50 percent of survey respondents are considering or planning additional layoffs in the coming weeks
Prior to the COVID-19 (coronavirus) pandemic, more breweries called California home than any other state in the nation, with nearly 1,040 craft breweries in operation across the state. In 2018, craft breweries supported 61,335 jobs and contributed $9.01 billion to the state’s economy.
According to a national survey from the Brewers Association, 46.4 percent of breweries across the nation anticipate their businesses will likely only last between one and three months, while 12.7 percent of respondents said they could stay afloat for just another one to four weeks.