accountant with bills

As steel tariffs and rising costs put added pressure on breweries and beverage producers, now more than ever it's important to take a hard look at your operation’s financial health and future. At Glacier Tanks, we’re feeling the squeeze too—and we want to provide useful, strategic content to help producers navigate today’s industry climate.

This article is a full-picture guide to evaluating your place in the market, understanding industry trends, and knowing how (and when) to adjust your business plan, your production model, or your equipment.

Industry at a Glance: A Maturing Market

The U.S. craft beer industry is shifting. According to the Brewers Association’s 2024 industry report:

  • Production volumes declined 4%: "Craft brewers produced 23.1 million barrels of beer in 2024, a 4.0% decrease from 2023. However, craft’s market share by volume remained essentially flat at 13.3%, the same share as in 2023, as the overall U.S. beer market declined by 1.2% in volume."
  • The number of operating breweries decreased for the first time in over 20 years—501 closures vs. 434 openings. Closure rate remained relatively low at approximately 5%.
  • Craft beer maintains a 13.3% market share by volume, slightly up from 13.1% in 2022.

Market saturation, increased competition, shifting consumer preferences (especially among younger generations), and economic headwinds are all contributing factors. In short: the "easy wins" are behind us, and breweries need to think smarter to stay sustainable.

Where Does Your Brewery Fit In?

Every beverage producer is different—but asking the right questions can help you determine where you are, and where to go next:

1. Are You Maximizing Production Capacity?

Track your monthly production volume. If you’re consistently brewing at full capacity and turning away opportunities, that may be your cue to scale up—whether that means adding fermenters, upgrading your brewhouse, or expanding your facility. Conversely, if you're under capacity, it's time to rethink demand generation or cost efficiency.

2. Retail vs. Wholesale: What’s the Right Mix?

A key financial lever is your retail-to-wholesale ratio. Retail (taproom, direct-to-consumer) margins are higher, but wholesale can offer volume. Use historical sales data and margin analysis to calculate your current split—and consider your goals:

  • Want more stability? Taproom sales may offer stronger per-unit returns.
  • Want broader reach and scale? Wholesale might be the path, but only if margins make sense and your distribution partners are reliable.

Rule of thumb: Retail = better margins, Wholesale = better reach. Smart breweries balance both. In general, if your brewery is producing less than a few thousand barrels per year, you will find more consistent margins in focusing on retail sales. This typically requires exploring options for additional taproom locations, but don't be afraid to think outside the box here.

Consider opening a mobile tap truck using your delivery van and advertise catering service for parties and events. Perhaps a local restaurant who's been a loyal draft customer for years wants to do a collab beer for an upcoming business anniversary? Consider limiting distributed SKUs and expanding taproom events, in order to drive customers to your highest-margin transaction point with special releases and crowd-sourced limited offerings.

3. Are You Tracking the Right KPIs?

To make informed decisions, watch these metrics:

  • COGS (Cost of Goods Sold) – Know your true cost per barrel, including materials, labor, energy, and equipment depreciation.
  • Break-even volume – How many barrels do you need to sell to cover your monthly overhead?
  • Gross and net margin by channel – Know your profits per pint, per keg, and per can.
  • Turnover rates – For both finished goods and raw ingredients, to keep cash flow moving.

Bonus: Use the Brewers Association’s Financial Benchmarking Tools to compare your numbers against similar-sized operations.

When to Invest in Equipment

If you're brewing at or near capacity and your sales are consistent or growing, it may be time to reinvest in:

  • Fermenters – More tanks = more batches in rotation.
  • Automated contracted packaging with a mobile packager – Especially if canning/bottling in-house is currently limiting production time on the brewhouse.
  • Brewhouse upgrades vs process changes – Before jumping into quotes for a massive Mash Tun or a bigger boil kettle, take some time to really analyze your brewday process. Can you start double-batching to limit total labor hours per bbl produced? Can you pull sprayballs from your fermenters to squeeze in another barrel or two of volume without adding labor time? With summer on its way and groundwater temps rising, are your knockout times remaining consistent, or is it potentially time to look into a 2-stage Plate and Frame Heat Exchanger?

Always evaluate ROI: How many more barrels per year will a new piece of equipment allow you to produce? And what’s the profit on that output?

Looking Ahead: Diversify, Simplify, Stay Nimble

In 2025, success may not mean rapid growth—it might mean smart sustainability. Consider:

Final Thoughts

The craft brewing world is no longer the wild frontier—it’s a competitive, data-driven landscape. If you haven’t revisited your business plan, financial model, or production strategy in a while, now is the time.

Stay tuned for more insights from Glacier Tanks as we continue to support beverage producers with stainless solutions, honest advice, and practical tools for long-term success.