What’s happening to the region’s breweries?
By Deborah Jeanne Sergeant
Remember when it seemed like a new brewery opened every several months in Central New York?
Those days are fading.
The Brewers Association, an industry trade organization, reports that in 2024, for the first time in 20 years, more craft breweries closed than opened and production of craft beer dropped by almost 4%. Last year proved no better, with production decreasing by 5%.
“The industry is going through an adjustment period from the rapid growth we’ve seen over these past 10 years,” said Paul Leone executive director of the New York State Brewers Association in Rochester. “At one point in New York state, we were opening a brewery every eight days. That kind of growth rate was never sustainable and you’re seeing a leveling off period where some are closing for a variety of reasons, but new breweries continue to open.”
At the trend’s peak, New York boasted 535 craft breweries compared with about 500 currently, a level that Leone thinks will remain stable for the indefinite future, despite the tough economy.
Shifting their focus a little may help.
“Breweries today need to be more than just a place to get a great, local craft beer,” Leone said. “They need to have food, they need to have events, they need something more to bring people in for that craft beer and most are or have, made that adjustment.”
In the beginning of the craft beer boom in the early 2000s, the novelty of the product, spurred by a return to niche products and allure of mom-and-pop local businesses drew beer lovers to seek craft beer.
Brew aficionados felt willing to pay premium prices for what they perceived as not only a premium product but also a premium experience: talking with the brewmaster, touring the facility (likely a renovated barn, firehouse or other historic structure) and purchasing a brew with a backstory. The brewmaster sold both a product and his personality.
Leone said that the pandemic negatively affected craft breweries as well. Consumers lost the in-person experience element of craft breweries. The pinch of inflation and job loss also influenced consumers to tighten their belts. Brewery expenses increased, forcing brewers to raise prices at the most inopportune time. Meanwhile, breweries’ stock of beer piled up during the shutdown.
Once businesses opened up again, consumers seemed to have “gotten over” craft brews and turned to other beverages, like ready-to-drink cocktails and non alcoholic beer — choices that not every craft brewery has embraced.
Another factor is that the population seeking craft brews is aging.
Drinking beverages higher in alcohol and calories doesn’t align with their current health concerns. There’s also more inclination at this age toward reducing drinking overall, which doesn’t help support the craft brew industry.
“We are certainly seeing pressure in the craft brewery space, though I would characterize it less as a collapse and more as a correction in a maturing industry,” said Robert Griffin, regional director of North Central Small Business Development Center hosted by Onondaga Community College.
Griffin believes that the sector’s rapid growth at its onset wasn’t sustainable. Add to that the more challenging business environment and it makes sense that the ranks have thinned among craft breweries.
“Consumers have more beverage choices, younger consumers appear to be drinking differently, taproom traffic is not as automatic as it once was and costs for labor, rent, utilities, ingredients, insurance, financing and debt service remain significant,” Griffin said.
It’s also a multifaceted business model that includes manufacturing, hospitality, event hosts, retailers and marketers. Although that offers a lot of opportunities, Griffin said that the craft breweries need to establish a clear identity so consumers know what to expect and how they can do business. It’s not enough to just have a passion for the product.
In addition, a “disciplined financial management, strong local customer loyalty, effective marketing and a realistic plan for events, food, distribution or other revenue streams,” are also helpful, he said.
That’s where organizations like the SBDC can step in and help an organization look at the administrative side and make some adjustments that can help the business adapt and thrive.
Griffin anticipates that the industry will remain strong across New York with new investment in this sector. However, brewery owners will need to realize that they not only compete with each other, but also with the other specialty beverages and entertainment venues.
“Closures are real and concerning, especially when they involve businesses that have become part of a community’s identity,” Griffin said. “But the broader takeaway is that the industry is changing. The breweries that adapt can still have a place in the region’s small business and tourism economy. The craft brewery industry is not disappearing, but the easy-growth period is over. Breweries today have to be strong financial, operational, marketing and hospitality businesses — not just good beer producers.”
Recent Brewery Closures in CNY
A quick search online shows several local breweries have closed in the last few years.
• Van Hassler Brewing in Liverpool: it closed in early 2026 after less than three years in business.
• Summerhill Brewing in Summer Hill, southern Cayuga County: they announced its closure in October 2025.
• Hot House Brewing at Barone Gardens in Cicero: it closed in August 2024 following the owners’ retirement.
