BILLINGS — The craft brewing industry is experiencing downsizing, but those in the business in Montana say it's not a crisis.
Nationwide, they say, it's more of a concern in the bigger cities, and Billings has a healthy beer market.
Shea Dawson and his wife own Thirsty Street Brewing Company, one of several craft breweries in Billings.
“Breweries are still doing pretty well here,” Dawson said.
His business has been able to prosper by showcasing local musicians, hosting fundraisers for nonprofit organizations, and creating a place for community bonding.
“Our customer base, for example, many of them know each other,” Dawson said. “They expect to see each other every Tuesday and Wednesday or, you know, whenever it is.”
While breweries have increased, craft beer revenue has fallen two straight years nationwide, according to a Brewers Associationstudy.
Dawson attributes some of the downturns to COVID-19 and changing consumer habits.
“Gen Z, they, I think there's a large percentage of them that don't drink,” Dawson said.
According to the Montana Brewers Association, the Treasure State has consistently ranked in the top three for breweries per capita in the last 10 years.
More recently, the growth has been flat.
“Liquor has trended up while beer has trended down,” said Matt Leow, Montana Brewers Association executive director.
Leow says the Montana market is healthy, but he also points to COVID along with aluminum can shortages and consumers choosing other beverages as contributing to the slight downturn.
“Ninety percent of craft beer drinkers indicate drinking at least one other category,” Leow said. "Liquor, (ready-to-drinks), hard seltzer, (non-alcoholics) on a weekly basis."
Meadowlark Brewing owner and founder Travis Peterson, who operates breweries in Billings and Sidney, says that 10 years ago, there were about 2,400 breweries nationwide and now it's close to 1,000.
He says a decrease is the norm because of market forces, “We're seeing a natural shrinking of the number of breweries that are out there."
Peterson and his wife started the business in Sidney. The loss of the Bakken oil production has led to fewer customers at that brewery, which pushed the couple to expand.
Meadowlark now brews in Billings, and the majority of its beer sales are in cans brewed from locally grown greens.
“Montanans in particular are really proud to support local businesses,” Peterson said. “And we're very local.”
Like Thirsty Street, Meadowlark diversified and has a restaurant, pickleball courts and hosts events.
“People look to us as a great place to hang out, great place to come with families,” Peterson said.
And they say two new breweries set to open in Billings indicate a good future for craft beer.
“It's good for our community of craft brewers when there's more of us around,” Peterson said.
“Beer has been a part of our society for hundreds and hundreds of years,” Dawson said. “So I don't think that's going to go anywhere.”
