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Axios Miami
Recent Miami brewery closures reflect craft beer industry struggles
By Sommer Brugal,
24 days ago
Greg Berbusse sees a "myriad of factors" working against Florida's craft brewery industry: inflation, narrowly written laws and a pandemic-era hit from which many have struggled to recover.
Why it matters: Locally, a handful of breweries have closed in recent months, and some say the closures mirror national trends suggesting more could be in the pipeline.
"Everyone is going to have to step up their game as far as advertising and getting their [brand] in front of [the public]," Berbusse, head brewer at Bay 13 Brewery and Kitchen in Coral Gables, tells Axios.
Catch up quick: Earlier this month, Union Beer Store , a beloved Calle Echo tap room, announced it was closing after seven years because of "too many obstacles looming."
In February, Wynwood Brewery Company — which opened in 2013 and was considered one of the first craft breweries in Miami — closed its flagship location and merged with its sister brewpub, Veza Sur Brewing Company, per the Miami Herald .
In November 2022, Dogfish Brewery Company in Wynwood closed because of rising rent, the outlet reported .
The big picture: Nationally, 495 new breweries opened last year while 418 closed, Axios Denver's John Frank reports.
In 2022, the craft beer industry fell flat, showing no growth for the first time since the pandemic.
But in 2023, the industry saw a 1% production decline — the worst on record since the late 1970s, data shows.
In Tampa, Cigar City Brewery in March closed its main Tampa facility and laid off most of its staff, despite being among the nation's top craft beer producers in 2023.
Friction point: According to Berbusse, one of the challenges facing Florida breweries is what's commonly referred to as the "three-tiered system," or the licensing agreement breweries have to enter into with distributors to sell their beer.
Case in point: If Bay 13 sold its beer to a cafe or restaurant, it couldn't simply deliver the product.
Instead, Florida law requires Bay 13 to sell the beer to a distributor who then sells it to the other restaurant.
The middleman can lead to additional fees that are often not sustainable for smaller breweries, Paloma Mejia, executive director of the Florida Brewers Guild, tells Axios.
Zoom in: In the current economic landscape, "people are weighing where they're spending their dollar," Berbusse says, and the lack of options could be negatively impacting breweries, especially smaller ones.
Many breweries are starting from a small, niche market already, he says. "Add in not having a kitchen, and you're not setting yourself up for continued success."
"The breweries having an easier time going forward are those with a tap room presence, a [steady rotation of] food trucks and any kind of following," he says.
Between the lines: Union Beer Store owners "started getting into food" because "craft beer [was] not what it was years ago," and Miami was becoming a "saturated" market, they told the Herald.
Many breweries are also diversifying their portfolios with seltzers and nonalcoholic beers, Mejia says.
Zoom out: The brewer's guild, he says, has been lobbying the state to "do what some 37 other states have already done" and allow brewers that produce up to a certain amount to distribute directly within a certain radius.
A bill pushed by the guild proposing minor reforms to the franchise law failed to find support.
Bottom line: Breweries are often considered a gathering place for a community, says Berbusse.
He's encouraging residents to call their representatives, invite them to a taproom and "actually do something to support small businesses."
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