Jan. 6—Thirty years ago, if someone said, “I’m going out to grab a craft beer,” the person they were talking to might not have known what that meant, let alone where they would go to get it.
Today, in Greensburg alone, it could mean eight different taprooms, and that’s not counting if the corner bar carries a few craft taps in addition to Iron City, Budweiser and Yuengling.
But, according to the Brewers Association, a national trade group, 2024 was the first year in nearly two decades when the U.S. saw more craft breweries close than open. The group’s 2024 Year in Beer shows 335 new breweries opening and 399 closing.
In Western Pennsylvania, Necromancer Brewing closed its Ross location in February after a three-year run; Cellar Works Brewing closed its doors in October after seven years in Buffalo Township; and Aurochs Brewing in Emsworth closed in December. According to industry blog Breweries in PA, about 20 craft breweries in Pennsylvania closed their doors in 2024.
David Sobel, who owns Sobel’s Obscure Brewery in Jeannette with his daughter Jackie, said the craft beer market was getting saturated. The Brewers Association report counted more than 9,700 craft breweries operating in the U.S. in 2024, and VisitPA counts more than 500 in Pennsylvania.
“There are just so many opening up,” Sobel said. “There’s not a big enough market share to support it all. You have home brewers who, in some cases, give up their job to go into brewing. And in the beginning it goes well, and everyone comes out to support it. But after a while, things slow down, and I think that’s where a lot of people run into problems.”
In Sobel’s case, the former department store where his brewery is located can seat more than 175 people, which has allowed him to branch out into event hosting.
“We have one of the largest seating capacities of local breweries,” he said. “So we can do a lot of larger events that other breweries aren’t big enough to host.”
Operating costs rise
In announcing Necromancer Brewing’s closure, owners cited rising operating costs, a concern echoed by Sobel and others.
“What’s really kicking our butt is the energy bills,” said Jeff Guidos, owner at All Saints Brewing in Hempfield.
Before starting All Saints, Guidos was head brewer at Red Star Brewing, which opened in Greensburg in 1998 and was part of the first wave of regional craft brewers.
“My energy usage is down, but my bills are still up about 30%. That’s what I’ve noticed more than anything,” he said.
Guidos said local craft brewers, for the most part, recognize the limited market and are content to share clientele.
“We all try to offer our customers the best, and they’re really good at supporting a lot of us,” he said.
At Yellow Bridge Brewing in Delmont, owner Ian Staab said he had to shift gears when it came to distribution.
“We’ve really backed off distributing to bars and restaurants,” Staab said. “The margins on distribution are pretty tight to begin with, and then when the cost of grain or hops goes up even a nickel or a dime, those margins get tighter and tighter.”
Sobel said he works with a wholesaler for distribution.
“The margins are a lot smaller than retail, but it gives you more exposure in the marketplace,” he said. “If they like your beer, maybe they come to the taproom. Our wholesaler distributes our beer in 10 or 12 counties, and they go out and take orders in advance, so we’re not wasting money brewing too much beer.”
As local taprooms look to diversify their offerings and give patrons more than just a seat at the bar, local musicians have made natural partners. Yellow Bridge hosts smaller musical acts and a weekly open stage.
According to the Brewers Association, a bump in hospitality offerings was among 2024’s top trends in the industry, along with growing demand for nonalcoholic beer.
“We’ve really emphasized in-house events,” Staab said. “We try to do fun stuff like bingo and trivia — reasons to get people in the door rather than trying to make money through keg sales.”
Regional tourism groups have also partnered with craft brewers for mutual benefit. For the past few years, Go Laurel Highlands has offered prizes for participation in an annual Pour Tour, with a checklist of local breweries for contestants to complete.
“Every year, though, there are more and more breweries on the Pour Tour list, so people are running around trying to get all the breweries checked off,” Sobel said.
John Bieranoski, co-owner and head brewer for Allusion Brewing in Vandergrift, said the beer industry in Western Pennsylvania is going strong.
“We’re in our fifth year, and we were doing well enough in 2024 that we were able to respond to requests for a location closer to Pittsburgh,” he said.
Allusion recently opened a second taproom on Duncan Avenue in Hampton’s Allison Park neighborhood.
“In the Pittsburgh area, you have us expanding, Allegheny City Brewing opened a new taproom, Grist House in Millvale took over a new spot in (Butler County),” Bieranoski said. “Around here, I think we have a pretty healthy beer industry.”
Prepare for change
In its closing announcement, Cellar Works Brewing said the business wasn’t able to bounce back enough after the covid pandemic, another concern cited by several local brewers.
“We still see our customers coming through the door, but overall sales are not quite as high as they used to be,” Sobel said.
Bart Watson, vice president of the Brewers Association, agreed.
“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,” he said in the association’s annual report. “That said, breweries have reacted to these changes by focusing on distribution, continuing to innovate in their taprooms and brewpubs, creating groups and partnerships, and offering a wider range of beverages in their portfolios.”
Bieranoski said that strategy has been part of Allusion’s success.
“At both locations, we’ve started adding other Pennsylvania-made craft spirits and wines,” he said. “In Hampton, we’re partnering with food trucks until we can get our kitchen installed. We serve local wines and we’ve seen a big boom in specialty cocktails. I see a lot of breweries doing that as well as doing (non-alcoholic) mocktails.
“You have to look ahead and be ready for any change that comes.”
Patrick Varine is a TribLive reporter covering Delmont, Export and Murrysville. He is a Western Pennsylvania native and joined the Trib in 2010 after working as a reporter and editor with the former Dover Post Co. in Delaware. He can be reached at pvarine@triblive.com.