Colorado's largest breweries take a hit as closures spike

The craft beer industry's historic downturn in 2023 hit even harder in Colorado.

State of play: In a reversal of national trends, and for the first time in recent memory, more Colorado brewery locations closed (28) than opened (20) in 2023, according to an exclusive Axios Denver analysis of new data from the Brewers Association, the industry's trade group.

• Moreover, just three of the 10 largest independent breweries in the state posted positive sales growth for the same period.

Why it matters: The numbers are more evidence that Colorado brewers must adapt to a new market as consumers pinch pennies and move to other alcoholic beverages and alternatives .

The big picture: Independent craft beer makers are faring better than the overall market, but the -1% production growth last year represented the first negative number in the industry's history .

Zoom in: In Colorado, a majority of breweries that reported data to the Boulder-based Brewers Association saw negative growth in 2023, with SPB Hospitality — owners of Rock Bottom and others — down 24% and Left Hand posting its second consecutive double-digit loss at -22%.

• A dozen-plus local breweries managed to record positive numbers. Dry Dock in Aurora saw 33% growth, while smaller beer makers continued to expand, such as Denver's Cerebral (+38%) and Bierstadt Lagerhaus (+16%).

What they're saying: "It's a testament to what we are seeing in the market and the beer styles," said David Deline, president at Prost Brewing, which posted a 5% gain last year and is poised to see 30% growth this year with its new Northglenn brewhouse.

• The brewery's German beer styles are more approachable and appealing to consumers, he said.

Caveat: Not all Colorado beer makers are represented in the data and others are estimates. For example, numbers for prominent breweries like WeldWerks and Breckenridge are not included.

Zoom out: The largest craft-adjacent beer maker in the state is Fort Collins-based New Belgium , which posted 12% growth to nearly 1.4 million barrels.

What we're watching: The industry's overall negative trend is poised to continue this year. Production volume from independent breweries is down 2% at the midyear mark, the association's chief economist, Bart Watson, said in a briefing this week .

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