Cigar City layoffs come amid downturn for craft beer market

Tampa boasted one of the biggest craft beer makers in the nation — until last month.

Why it matters: The once-booming craft beer industry has hit a troubling downturn as competition and shifting alcohol consumption habits threaten its future, Axios Denver's John Frank reports .

• Tampa Bay defines Florida's craft beer scene, with 110 brewers contributing to the state's multibillion-dollar industry.

Driving the news: Cigar City Brewing was among the nation's top craft beer producers in 2023, new data from the Brewers Association shows.

• But Monster, the energy-drink maker that purchased Cigar City's parent company in 2022, closed the main Tampa facility last month and laid off most of its staff.
• The building will become a hub for Monster's beer, flavored malt drinks and spirits.
• Cigar City's taprooms in Tampa will remain open and the brand will keep making its local favorites like Jai Alai and Florida Man, per the Tampa Bay Times .

The big picture: The craft beer industry saw negative production for the second straight year in 2023 , continuing a downward trend for independent, small brewers.

Yes, but: Craft beer fared better than the beer market as a whole, according to the Brewers Association, and new brewery openings continue to exceed closings.

What we're watching: Inner Compass Brewing is opening soon in Lakewood Ranch.

Magnanimous Brewing's third tasting room opened in February , taking over 7venth Sun Brewing Company's old Tampa spot.

Sign up for Axios Tampa Bay for free.