Beer sales fall to 45 year low

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Smokin Okie

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I've wondered how long the craft beer boom would last, more craft breweries are closing than opening

As beer loses share to hard seltzer, US barley farmers scramble

Sharon, North Dakota, Sept 11 (Reuters) - Don Nygaard, a third-generation farmer in a remote corner of North Dakota, used to grow malt barley for Rahr Malting Corporation to make into lagers, pale ales and IPAs.

But this year, he received no lucrative contracts from Minnesota-based Rahr or any beer makers, so his sprawling farm is growing food-grade barley and wheat, both crops that are priced near four-year lows.

As overall beer consumption in the U.S. slides to its lowest level since the 1970s according to data from the Brewers Association, U.S. Plains states face a huge glut of barley. Americans are buying less beer, and frequenting fewer craft breweries that use even more malt per beverage.

The exploding popularity of hard seltzers and lower alcohol consumption in general have led to plummeting barley demand from beer makers. Multiple years of excellent barley crops have further depressed prices and taken away a once high-value option in a year where farmers are struggling to break even with any crops, farmers, agronomists, and beer industry experts said.

============================

THE BIGGEST LOSER​

Fruit-flavored hard seltzers, ready-to-drink cocktails and cannabis-infused beverages have chipped away at beer's market share for years. From baseball games to booze-fueled college fraternity parties, White Claw seltzers are almost as ubiquitous as Bud Lights. White Claw markets itself in the U.S. as free of grains, although the products may contain grain such as barley in some locations.
Many of the most popular hard seltzer brands, including Truly, High Noon, Bud Light Seltzer and White Claw are made without barley and use fermented sugar, vodka or tequila to supply the alcohol. Some seltzers, such as Vizzy, and non-alcoholic beers continue to rely on malt barley.

"Beer is the biggest loser," Bart Watson, chief economist at the Brewers Association, said. "There's so much competition from products that didn't exist 50 years ago."


Unlike major barley exporters in the European Union and Australia, American beer drinkers end up consuming most of the malt barley produced in the U.S.


Even in rural North Dakota, advertisements for hard seltzers are plastered over billboards and abound in bars in small towns. Major malt plants, where kernels of barley are turned into the key building block for beer, are signing fewer contracts with farmers as demand from breweries wanes, farmers and economists said.


High interest rates and inflated costs of pesticides and equipment, in addition to dismal crop prices have left farmers worried about their ability to pay back the loans that allowed them to plant their crops.


"It's going to be one of the years where it's tough to raise a commodity," said Steve Sheffels, a fourth-generation barley and wheat farmer. "Hopefully I'll grow enough crop to cover my costs."

NERVE-WRACKING​


A once-booming craft beer industry has slimmed down, with microbrewery closings outpacing openings for the first time in 2023, according to the Brewers Association. Craft beer requires roughly four to five times as much malt as mass-produced beer further denting barley demand, Sheffels said.


Kaj Peterson, lead maltster at Maltwerks, said his Minnesota-based malting plant has nearly halved their barley purchases compared to five years ago as demand from craft breweries across the state wanes.

"It's hit our bottom line," Peterson said. "We're starting to feel the pushback from breweries – they're cutting production. It's nerve-wracking."

As the explosive growth of breweries has slowed, businesses left have needed to diversify their offerings to excite customers, Mark Bjornstad, owner of Drekker Brewing Company in Fargo, North Dakota, said.

His airy brewery is perfumed with a citrus scent from the taproom's IPA, which the company offers along with alcoholic smoothies and non-alcoholic beers they've added to boost business.

"Customers are very discerning," he said.

On top of bruising competition from alternative drinks, the beer industry is facing another challenge: young people are drinking less alcohol than any previous generation.

A growing "sober curious" movement, embraced by millennials and Gen-Zers and fueled by social media, has led to drinkers re-evaluating their relationship with alcohol and sometimes choosing to abstain from it altogether.

Though healthier choices and more creative drink options have benefited customers, they have shaken the fundamentals of farmers' business.

"I'm 67, so I did drink my share of beer growing up. Now there are these other fancy drinks that don't need malt," Nygaard said.


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I try and help the barley farmers as much as I can. Sad to see college males buying a case of White Claw and knowing it is not for their girlfriend.

I'm with ya there :emoji_laughing:

I've tried the seltzers. They're awfully fruity. And the ones I tried may be low carb, but their low abv also, so I just drink more of them.

But reading that article, they're talking about some high abv seltzers, like 8 to 12%. And low carb at 2 g . That's new info for me.

When I'm having to watch my weight, that could be a viable option.
 
I dont drink much beer anymore. After a couple I'm usually not craving more. I like Vodka and carbonated water before dinner and bourbon after.

I LOVE a good dark beer though. When I go to a restaurant for lunch that has draft taps I look for the highest ABV dark beer on the menu, but usually only drink one or two.

We have a lot of breweries around here. Used to love doing tastings and bring home growlers. But they are so focused on IPAs which I'm not a fan of, there arent many dark offerings worth the money...and that's one of the reasons sales may be dropping, they are charging so much. A lot of people, especially now cant justify paying the money.

I've read liquor sales are down too. Good grief, what they want for a fifth of liquor these days is crazy. I drink mostly cheaper stuff. I'd go broke with the higher shelf stuff at the rate I go through it!:emoji_confounded:
 
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Ultra draft is $5-$8 per glass or mug these days, I drink about 1 beer every day or 3, might go a week without 1 and like a lot of other things these days the drive to have it has declined lol.
 
The change in cannabis laws, including misdemeanor charges have surely have swayed people away from alcohol consumption.
Nah. The only difference is you're not going to the clink for having a dube in your pocket. Pot shop on every corner around here and more packies and micro breweries than ever before.
 
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Maybe with the current state of affairs, people find they need something a little stronger than beer lol. And with the price of even domestic beer these days, a cheap bottle of the spirit of your choice will get you more bang for your buck.
 
The change in cannabis laws, including misdemeanor charges have surely have swayed people away from alcohol consumption.
Not around here. Craft breweries everywhere and the parking lot smoking areas have that sweet skunk smell.
I've never tasted a craft beer I like so if that's all they have they git no business from me. I'm a Yuengling man while cooking and eating. After that it's bourbon/whiskey. Rye is especially nice after brisket or dino bones!
 
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Not around here. Craft breweries everywhere and the parking lot smoking areas have that sweet skunk smell.
I've never tasted a craft beer I like so if that's all they have they git no business from me. I'm a Yuengling man while cooking and eating. After that it's bourbon/whiskey. Rye is especially nice after brisket or dino bones!

Yuengling is a great beer. They just started distributing to Oklahoma in the past 2 or 3 years. Mrs Okie loves it.

I love my ales, IPA's, stouts, and especially a farmhouse ale by Boulevard Brewing in KC, called Tank 7. They get a lot of our money.
 
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