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Iowans don’t get around much anymore, and craft brewers are feeling it.
“Taproom sales have been going down, and if they keep going down there’s going to be more closings,” said Scott Whitson, head brewer and co-owner of BIT Brewing in Central City.
Craft brewers of all sizes are seeing fewer sales in their on-premise taprooms.
“Our taproom sales are down,” said Todd Viall, owner and head brewer at Clock House Brewing in Cedar Rapids. “Not terribly bad, but it’s been a steady decline.”
“There are a lot of breweries out there, and craft beer is feeling the pinch of economics and overgrowth,” said Alec Travis, co-owner and beverage director at Field Day Brewing in North Liberty.
“Last year was a challenging year for breweries,” said Quinton McClain, founder and head of operations at Lion Bridge Brewing in Cedar Rapids. “You see a lot of equipment on the market, and trends do change.”
“We have not seen consumers’ social behavior return to pre-pandemic (patterns),” said Noreen Otto, executive director of the Iowa Brewers Guild. “We see less people leaving their home and coming out and socializing. We’re just not seeing the same level of sales, and our brewers who depend on taproom sales are seeing the effects.”
Iowa’s experience is part of a national trend away from beer. Beer sales in the state dropped 3.2 percent in 2023, the last year for which complete statistics are available, compared to 5.1 percent nationwide. After a big jump from 2020s COVID slump, Iowa beer sales continued to drop, according to the state’s Alcoholic Beverages Division. Otto noted 2021’s rebound was driven by a reopening of public gatherings and the change in state law to allow to-go sales from bars and taprooms.
In its annual Year in Beer report, the Brewers Association — the national trade association for craft brewers — calls 2024 “a year of decelerated growth.” Overall beer consumption in the U.S. fell in 2023 to its lowest level since the 1970s, according to the Association.
“Craft has been going through a painful period of rationalization as demand growth has slowed and retailers and distributors look to simplify their offerings or add options for flavor and variety outside of the craft category,” said Bart Watson, the association’s vice president of strategy and membership.
Alternatives such as canned wines and cocktails and THC-infused drinks have prompted some brewers to offer those products, too.
Iowa brewers’ share of statewide sales saw a modest increase last year, although their 1.5 percent niche is a fraction of craft’s 13.3 percent share nationwide. A craft brewer is defined as one producing up to 6 million barrels a year. A beer barrel holds 31 gallons.
The Brewers Association counted 9,736 craft breweries last year, when 355 new breweries opened as 399 closed, including Kalona, Peace Tree in Knoxville, and Franklin Street in Manchester. The Brewers Guild counts about 100 member breweries and cideries in 81 Iowa communities.
Iowa Brewing Company continues taproom and brewing operations while it seeks a new owner. Craig Stephan, president of the Cedar Rapids brewery that opened in 2016, declined further comment for this article.
The state’s largest craft brewer, Iowa City-based Big Grove, “remains an aberration to those trends,” according to Bryan Farrell, its director of marketing.
Big Grove sales are up 15.2 percent over the past year and the company is on track to selling “well over half a million cases this year,” Farrell said. The company opened taprooms in Cedar Rapids and Des Moines, with an Omaha taproom set to open in April and a sixth Midwest location later in the year. It’s expanded retail distribution into Western Illinois, most of Nebraska, Missouri, and Kansas, including Kansas City.
“We continue to see (taprooms) as our biggest marketing tool to engage consumers,” Farrell said. “All of our locations are full-service restaurants. If you took our name off the building, we’d still be one of the top-performing restaurants in that market.”
Big Grove even aired Super Bowl ads on Iowa TV and plans to directly challenge big multinational brands with Neighborhood, a light lager now available in its taprooms with a retail rollout in March.
“Two trends we’ve seen are consumers focusing on higher ABV (alcohol by volume) options, which we already have, and lower ABV, your typical lagers,” Farrell said. “We’re targeting a lager that can go out to that drinker.”
“To teach somebody about a beer, I’m going to be able to do that in our taproom so much better than at Hy-Vee with samplers,” Field Day’s Travis said. “If they’re not a craft beer drinker, they come in and they try it on draft, but we have that opportunity for our staff to make that personal connection.”
Lion Bridge, which closed its kitchen at the end of 2024, is close to a deal to rent it, McClain said.
“It’s pretty much finalized,” he said. “The focus is to concentrate on what we know, the beer side. From the customer side it may not look any different.”
McClain hopes to unveil plans for a taproom remodel and other changes when Lion Bridge celebrates its 11th anniversary in March.
“We’ve been talking about reimagining our space,” he said. The plans include the eventual addition of a distillery, for which McClain has already purchased equipment.
“We will be adding that,” he said. “The kitchen and taproom remodel is Phase One, the distillery is Phase Two. That’s looking very promising, too. New products are critical now. Customer tastes change and we want to get people in the door.”
The capacity to produce more beer styles and non-beer alternatives, and the canning equipment to support retail distribution, afford larger brewers more options.
“We’re focusing more on distribution,” said Viall at Clock House. “Our Witch Slap brand is growing, so we’re just pushing more out the door even though were not really a production brewery.”
“We’re still trying to take share from the big breweries,” said Travis at Field Day. “We have hazy IPAs and fruited sours, expanding that portfolio for everybody. We want people to come in and have non-alcoholic seltzers, NA beers, wine, cocktails, (THC-infused) Daydreamer.”
That keeps customers coming to small brewers like BIT, too.
“We keep a couple of sours, a couple of ciders, a couple of IPAs, a couple of lighter beers on tap,” said Whitson. “We usually have a couple of stouts. I’ve had a barrel-aged beer on tap since late fall. A good selection, and we always try to do something new.”
Brewers plan events and offer a wider variety of styles to boost taproom traffic.
“The Iowa craft beer scene is not immune to the pressure we’re seeing elsewhere,” said Otto. “Consumer habits and consumer palates are changing, but our brewers are stepping up.”
Co-owner Scott Whitson cleans out kegs in the basement at Bit Brewery in Central City on Sunday, Sept. 6, 2020. (Andy Abeyta/The Gazette)
Co-owner Scott Whitson transfers beer to a mixing vessel at BIT Brewery in Central City, Iowa on Friday, Feb. 14, 2025. (Nick Rohlman/The Gazette)
Co-owner Scott Whitson measures rhubarb extract used to flavor a sour beer at BIT Brewery in Central City, Iowa on Friday, Feb. 14, 2025. (Nick Rohlman/The Gazette)
Co-owner Scott Whitson pours off the trub, or sediment formed during the brewing process, from a beer at BIT Brewery in Central City, Iowa on Friday, February 14, 2025. (Nick Rohlman/The Gazette)
To the state’s smallest brewers like BIT, which has seen sales drop 1 to 4 percent a year since opening in 2020, taproom sales are critical. BIT beers are available at a few retail outlets, with Whitson or another employee filling and sealing each can.
“We just continue to look for ways to trim the fat and get more people in the brewery,” he said.
That can mean live music, trivia nights, and special events to draw customers. BIT also serves wood-fired pizza.
“For the smaller taprooms in the small community, their goal is to be the living room for the community,” Otto said.
“We try to make it a nice gathering place for friends and family,” said Whitson. “We had a 50th birthday party last night. We’ve had a one-year-old’s birthday party, we just had a baby shower last weekend. We’ve had a wedding reception in here. It’s kind of fun.”