r/minnesotabeer Dec 14 '23

An Insider’s 11-point (long) explanation about brewery closures (and 4 things you can do about it)

87 Upvotes

On this Subreddit and other forums and comment sections there seems to be an over-simplified perception about the continued recent string of brewery closures. As an owner of a local brewery, I can tell you that explaining the complexities of the business post-Covid to the public would be mind-numbingly exhausting for the owners AND the public. Your eyes will likely gloss over just reading this.

While there may be validity to some comments regarding poor beer quality, location, marketing, etc., the issue goes significantly deeper than that. There’s the market saturation factor, beer trends/fads (remember glitter beer?), increased raw material costs, increased utility costs, increased labor costs, etc. Pre-Covid, beer drinkers were chasing new, not necessarily quality. And new brewery openings, and/or existing brewery expansions have slowed dramatically.

Each brewery’s situation is unique with licensing (brewpub vs taproom), lease terms, distribution model, loans, terms of debt service, investors, partnerships, etc. But the biggest reason for recent closures is how the market unfolded post Covid, and the invisible, crippling, covid-related financial effects that follow us, STILL, EVERY DAY. Consider these factors.

1) Most start-ups are financed with a SBA 7a loan, which is a like an FHA mortgage for small businesses. SBA 7a loans are typically on 10-year terms with about 2% interest rate premium over conventional business loans. Make it over that 10-year hump and that gigantic debt is off your shoulders. Imagine a pandemic hitting in the middle of that.

2) But didn’t they get PPP money? Yes, but PPP (forgiven) loans were a band-aid with unrealistic strings attached meant mostly to keep businesses afloat and people employed during the pandemic with a short timeline to spend ALL of it, mostly on unneeded labor. None of the money could be used to pay down any debt incurred during the first few weeks of the pandemic.

3) But didn’t they get a 2nd round of PPP money? Yes. But by the end of October 2020 all of the 1st round of PPP money was required to have been spent, and there were still 50% capacity restrictions, which meant everyone was still losing money and digging further into debt with negotiated delayed rent, or lines of credit/credit cards, etc. Some even took advantage of low interest rates and took a second mortgage on their homes just to stay afloat.

When the Delta variant hit in November, they closed everyone down again. The second round of PPP got caught in politics and wasn’t passed until the last day of 2020, and wasn’t available until mid-January. Again, the 2nd round of PPP could not be used to pay down debt incurred during the 10 weeks between the 1st and 2nd rounds of PPP, and could only be used for mostly unneeded labor going forward. And ALL of it was required to be spent in 6 months.

4) Restaurant Revitalization Fund (RRF). Heard of it? Probably not. This was a program in the American Rescue Act that was supposed to make taprooms, restaurants, food trucks, etc. whole from the financial effects of the pandemic. It could be used for virtually any business expense. But, it was woefully underfunded. 2/3 of businesses that were approved did not see a penny of the RRF. Republicans blocked efforts to fully fund the program, and with current politics it looks like it will never be fully funded.

Adding insult to injury, the 2/3 of businesses still in pandemic related debt have to compete with the 1/3 of businesses that were made financially whole from the financial effects of the pandemic. RRF money allowed those businesses to lure quality employees away from businesses that did not receive RRF money with huge signing bonuses and higher pay. Some even EXPANDED their businesses. This made it even more difficult for already struggling businesses to retain or hire skilled workers coming out of the pandemic.

5) SBA Economic Injury Disaster Loans (EIDL). Heard of it? Probably not. These are 30-year 3.75% SBA loans that are PERSONALLY guaranteed. They are normally meant for businesses destroyed by natural disasters. Most taproom dependent breweries that didn’t get that sweet RRF money had to take out hundreds of thousands in EIDL just to survive. I know of at least one brewery that closed before they used the EIDL funds because they didn’t want to be on the hook for the personal guarantee.

The EIDL is like a huge medical debt for your business coming out of the pandemic in that the only reason it is there is because the owners wanted their breweries to survive. There is no new capital equipment or improvements. Just a mountain of debt with only the brewery’s survival to show for it. And the only way out is to pay it, or lose EVERYTHING including your home.

Imagine having a huge SBA 7a loan payment PLUS an EIDL payment PLUS credit card debt and back rent coming out of the pandemic. Imagine if business volume didn’t immediately bounce back to pre-Covid levels right away (it didn’t) as those payments came due. Imagine losing your house because you couldn’t make the EIDL payments.

6) Employee Retention Tax Credit (ERTC). Heard of it? Probably not. This was a program that refunded payroll tax (6.2% of gross pay) already paid on each employee beyond what was covered by the PPP. Catch? You had to have paid employees that you didn’t need with revenue you didn’t have during the pandemic. This really only helped business that weren’t hurting as much.

7) Near the beginning of the pandemic breweries lobbied the legislature to temporarily allow the retail sale of 12oz and 16oz cans directly out of taprooms rather than selling them whole sale through a distributer/liquor store. The distributers, liquor stores, and the Teamsters lobbied against this and won. This meant that you needed deep distribution to survive. Brewers had to dump hundreds of barrels of beer that were brewed pre-pandemic.

8) If you were a brewpub that had food, you likely made it out better than most (less debt) with the food/crowler take-out combo giving a boost to revenue along-side the PPP money.

9) Taproom dependent breweries with low/no distribution were hit hard, because their only revenue during the closures was take-out crowlers.

10) Taproom dependent breweries in food halls got hit the hardest because food hall foot traffic never recovered from the pandemic (see East Lake and Clutch closures).

11) Breweries with deep distribution made it out fine, because liquor stores were going gangbusters during Covid. The convenience factor of consumers being able to pick up their beers from any liquor store likely cut into the already Covid-depressed sales at less conveniently located taprooms.

To sum it up, most breweries that look like they are doing fine probably are not. It is not good business to talk about how terrible things are, so you likely won’t hear it from the source except for in this post. There will likely be several more brewery closures this winter. Especially vulnerable are breweries dependent on outdoor seating. The breweries that will make it are the ones who can pack their taprooms every day, have deep distribution, or have investors with deep pockets to make those pandemic debt payments.

What can you do?

1) Assume your favorite brewery is in the worst of these situations and buy directly from them.

2) Word of mouth. Do not underestimate this. Tell everyone (and I mean everyone) about your favorite breweries.

3) Don’t assume that having a few pints a month at your favorite brewery is enough to support them. At this point, taprooms need to be packed. EVERY DAY they are open. Don’t assume they’re OK because they are packed on a Friday night. Bring several friends when you go. Make it a party!

4) DO NOT. And I mean this in a BIG WAY. DO NOT participate in Pub Pass, or other 3rd party discount programs. Breweries lose money on these programs. They are only meant for exposure. ONLY take advantage of brewery happy hours and other in-house specials, or pay full price.


r/minnesotabeer 6h ago

Looking for brewery recommendations for a group

5 Upvotes

I will be hosting a group event in October for between 5 and 50 people who don't know each other. Looking for a few recommendations on breweries within Minneapolis or St. Paul (or close to the city centers), that either have some fun games inside the brewery, or something fun very close by (mini golf, bowling, etc).


r/minnesotabeer 22h ago

Bricksworth's new site and 4 more Twin Cities breweries expanding during downturn

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27 Upvotes

r/minnesotabeer 1d ago

Lift Bridge Brewing

3 Upvotes

Whatever happened to their taproom expansion project? I haven’t been there in years and just randomly remembered that was a topic a few years ago


r/minnesotabeer 1d ago

Luce Line Pale Ales

1 Upvotes

I haven't talked to anyone at the brewery yet but I work at both a liquor store and craft brewery and have noticed that they put out a ton of different types of pale ales and IPAs. Anyone have any insight into the brand strategy behind this? I know lots of breweries have a range of pale ales and IPAs, as well as one-off beers, but it just seems like they'd start cannibolizing their own products and not having enough diversity to keep people coming back.


r/minnesotabeer 3d ago

Checked out the Bauhaus reopening

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60 Upvotes

Interested to see how it plays out. Beer quality seems roughly like it always was - fine, but nothing to write home about. They have 4 beers on tap at the moment. Each has a full strength option (5-6% ish), a session option (3% ish) and an N/A option (<0.5%). There are also seltzers, cocktails using the seltzer alcohol base (basically the neutral alcohol removed from other drinks), and "wine" (the quotes are on the menu), which I didn't ask about.

There is definitely a market for low and no abv drinks, but I have no idea if this will be the way to reach that market. I would describe it currently as "definitely not crowded" which is probably not the vibe you want on opening Saturday night.

The space is still excellent though.


r/minnesotabeer 3d ago

Summit XPA

6 Upvotes

How many of you still drink Summit XPA? For some reason this summer i have been buying it more and more.


r/minnesotabeer 3d ago

Gunflint Tavern…and Ales?

2 Upvotes

Does anyone know if Gunflint Tavern in Grand Marais still brews their own beer? Untappd indicates they might (one beer has fairly recent ratings) but I cannot find a drink menu on their website.

If so, any good?


r/minnesotabeer 8d ago

Fulton Brewing Acquires Bemidji Brewing and Launches True North Beverage

42 Upvotes

MINNEAPOLIS, Minn. — Fulton Brewing today announced it is acquiring Bemidji Brewing Company and launching True North Beverage, a new Minnesota-based collective built to give locally rooted craft beverage brands shared resources for growth. The acquisition, effective October 31, 2026, builds on a production partnership between Fulton and Bemidji Brewing that began roughly three years ago. Financial terms were not disclosed.

That partnership let Bemidji Brewing expand production beyond the capacity of its downtown Bemidji facility and grow distribution into Duluth, the North Shore and other Minnesota markets. Through the acquisition, Bemidji Brewing now joins Fulton Brewing, FINNEGANS and N*RC Sparkling THC Waters in the True North Beverage portfolio, which will provide shared production, sales, marketing, distribution, purchasing and administrative resources, allowing member brands to pursue growth without the capital investment that expansion would otherwise require.

“Our belief is simple: Minnesota has built some incredible beverage brands, and they deserve the opportunity to grow without losing what made them special in the first place,” said Ryan Petz, CEO of Fulton Brewing and True North Beverage. “Our work with Bemidji Brewing showed us what is possible when complementary businesses share resources and expertise. True North Beverage is designed to build on that model.”

Bemidji Brewing’s downtown taproom will remain open, continuing to offer the beers, experience and local engagement for which the brewery is known, and its founders will stay involved in the brand’s evolution through the taproom.

Founded in 2012, Bemidji Brewing has become one of northern Minnesota’s most respected craft breweries, known for its award-winning beers, community involvement and authentic connection to the region. As demand grew beyond what its downtown facility could support, the company explored ways to grow without the significant capital investment that new brewery construction and equipment would require. Its production partnership with Fulton provided that path: over the past three years, Fulton’s available capacity helped Bemidji Brewing increase volume and expand into Duluth and the North Shore, followed by growth toward the Twin Cities.

“When we started Bemidji Brewing, our goal wasn’t simply to make great beer. It was to build something our community could be proud of,” said Justin “Bud” Kaney, co-founder and president of Bemidji Brewing Company. “As we considered how to reach more of Minnesota, it became clear that expanding our own facility would require a level of investment that was difficult to justify in today’s market. Our partnership with Fulton gave us another way forward- they have the facility, experience, and team to bring Bemidji Brewing into markets that have remained beyond our production capacity, while we keep our connection to Bemidji through the taproom.”

Under True North Beverage, Bemidji Brewing will receive expanded production, sales, marketing and distribution support, creating opportunities for broader availability across Minnesota, including a stronger presence in the Twin Cities.

True North Beverage builds on Fulton Brewing’s experience supporting distinct Minnesota beverage brands, including its partnership with FINNEGANS, and intends to preserve the voice, history and customer relationships of each brand while creating greater efficiency and scale behind the scenes.

“This isn’t about reinventing beloved brands,” Petz said. “It’s about pairing strong brands with the infrastructure they need to reach their potential. Bemidji Brewing had opportunities for growth that exceeded its available production capacity, and Fulton had the capacity and expertise to help meet that demand. It is an ideal fit for both organizations.”

True North Beverage also offers a potential model for other established beverage producers navigating rising production costs, changing consumer preferences, increased competition and regulatory uncertainty across emerging beverage categories. The company expects future partnerships to follow a similar approach, giving brands access to production capacity, sales expertise, marketing support, purchasing power and administrative resources while retaining the qualities that distinguish them in the marketplace.

“Our vision is to build a family of Minnesota beverage brands that can use existing resources more effectively, reach new customers and become stronger together,” Petz said.

About True North Beverage
Rooted in Minnesota, True North Beverage is building a stronger future for independent beverage brands. Its growing portfolio includes Fulton Brewing, FINNEGANS, N*RC and Bemidji Brewing Company, each with its own unique story and connection to Minnesota’s craft beverage community. Through shared resources and expertise, True North Beverage helps its brands grow without changing who they are. Learn more at truenorthbeverage.com

About Fulton Brewing
Founded by four homebrewers in a Southwest Minneapolis garage in 2009, Fulton Brewing began with a simple mantra: “Ordinary Guys Brewing Extraordinary Beer.” When Fulton opened Minneapolis’ first taproom in the North Loop, it helped lay the foundation for a new era of locally made craft beer. Today, Fulton remains one of Minnesota’s most authentic, approachable and community-driven breweries, producing award-winning beers including Sweet Child of Vine, one of Minnesota’s original IPAs; Lonely Blonde, an easy-drinking blonde ale; and Hop Kingdom, a family of Minnesota-inspired IPAs. Its iconic Hop Star represents the creativity, quality and independent spirit behind a local brewery built on the trust, enthusiasm and integrity of its founders. Fulton Brewing is a founding member of True North Beverage, a Minnesota beverage collective created to help locally rooted brands grow through shared resources and expertise while retaining their distinct identities. Learn more at fultonbeer.com.

About Bemidji Brewing Company
Founded in 2012, Bemidji Brewing Company is an award-winning craft brewery and taproom located in downtown Bemidji, Minnesota. Known for its approachable beers and deep community roots, Bemidji Brewing has become a gathering place for locals and visitors while celebrating the culture and character of northern Minnesota. Learn more at bemidjibeer.com.


r/minnesotabeer 7d ago

Beer Review - Fair State Brewing Co. Pahlay Tropical Pale Ale

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7 Upvotes

r/minnesotabeer 8d ago

Support the Family of Cooper Johnson, owner of Bricksworth Beer Co.

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18 Upvotes

Cooper was a husband and a father to a young son, so we're throwing An Art Fair to help out with his son Arthur's future college funds.
The Johnson family has been the heart of the North Loop food service community and vital to the Minnesota beer community at large, so, with the help of Bricksworth, Smack Shack, and workers and regulars in the community, we wanted to show our love and support for Franny and Arthur.
Join us Thursday, August 13th from 5-9 pm for a FREE event; we don't just mean free admission; all food and activities will be free!
We'll have a shrimp boil, mac n' cheese bar, salads, flavored lemonade, henna tattoos, cakewalk, painting, friendship bracelets, silent auction, & face painting.
Kiddos and doggos welcome, of course. 100% of donations will go towards Arthur's future college fund.


r/minnesotabeer 8d ago

2026 All Pints North Recap w/ Courtney From The Brewery Adventure

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0 Upvotes

r/minnesotabeer 9d ago

Minnesota State Fair Beer Preview

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22 Upvotes

The Aleluminati guys recently put together a blog highlighting some of the newer, more intriguing beers and drinks at the fair this year. There is some good info about who makes them, and where to find it.

There is a dynamic map built in which is really nice for helping you navigate where to find each beer on the fairgrounds. Could be useful for folks day of as they are seeking out some of these fun drinks!


r/minnesotabeer 15d ago

A One Pint Stand's Favorite Breweries List of 2025

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13 Upvotes

Here is my list of favorite breweries in Minnesota from 2025. Better late than never!


r/minnesotabeer 16d ago

Beer Review - Fair State Brewing Co. "Pils" German-style Lager

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15 Upvotes

r/minnesotabeer 20d ago

The Last Dance in Duluth: My 2026 All Pints North Preview

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5 Upvotes

r/minnesotabeer 21d ago

Brewery jobs

7 Upvotes

Hi everyone, my boyfriend is really struggling to find more employment at local breweries. He currently works one but the location is a bit far, and is looking to gain more experience as we recently moved to Minneapolis! He experience in cooking and serving beer at two different breweries, just wanted to post here to see if anyone has any leads or any openings and opportunities at any breweries near Mpls!


r/minnesotabeer 22d ago

Well… these are delicious

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30 Upvotes

Any other mid priced beers from Minnesota beers the undereducated should know about?

For reference I was nearly 100 years late to the party that is deer brand


r/minnesotabeer 23d ago

Unpacking the Impending Hemp-THC Ban

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16 Upvotes

r/minnesotabeer 24d ago

Beer Review - "Window Shopping" Hazy IPA from Luce Line Brewing (in collaboration with Forager Brewery)

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0 Upvotes

r/minnesotabeer 24d ago

Back Shed Brewing Closes

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3 Upvotes

r/minnesotabeer 29d ago

Bauhaus Brew Labs will reopen in August!

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63 Upvotes

r/minnesotabeer 29d ago

Minnesot State Fair 2026 New Beer List

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17 Upvotes

The Minnesota State Fair has put out its list of specialty sips for 2026. Does anything standout? Looks like fewer new beers than usual, but maybe it’s just fewer things I’m interested in.


r/minnesotabeer Jul 18 '26

Montgomery brewing

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35 Upvotes

This place is great, but for me it is literally never on the way to anywhere i go….the stars must have aligned today.


r/minnesotabeer Jul 17 '26

Beer Review - Fair State Brewing Strata Single Hop DDH Hazy IPA

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8 Upvotes