Hangar 24 Brewery, located in Redlands, California, faced significant challenges in 2018, as did many regional craft breweries. While some smaller breweries were able to adapt and thrive by focusing on on-site can sales and growler fills, Hangar 24 Brewery, which relied more heavily on retail distribution, suffered from stagnant sales.
In response to this difficult situation, Hangar 24 Brewery made the difficult decision to lay off 42% of its brewing production team. This restructuring of operations was necessary to streamline the brewery's operations and adjust to the changing market conditions. While layoffs are never easy, they can sometimes be necessary for a business to survive and make the necessary adjustments.
The main factor contributing to Hangar 24 Brewery's struggles was the decline in retail sales. Craft beer enthusiasts have increasingly turned to local taprooms and brewery visits for their beer consumption, favoring the experience and freshness of on-site consumption. This shift in consumer behavior, coupled with increased competition from other local breweries, impacted Hangar 24 Brewery's ability to sell its beer through traditional retail channels.
Additionally, the craft beer market as a whole faced challenges in 2018. With the rise of craft breweries across the country, the market became more saturated, making it harder for established breweries to stand out and gain market share. This increased competition, combined with changing consumer preferences, created a challenging environment for Hangar 24 Brewery and many other regional craft breweries.
As a sommelier and brewer, I have personally witnessed the impact of these challenges on the craft beer industry. Craft breweries that were able to adapt and differentiate themselves were more likely to succeed, while those that relied heavily on retail distribution faced more difficulties. It is important for breweries to stay nimble and responsive to market trends, constantly innovating and finding new ways to engage with consumers.
Hangar 24 Brewery faced a difficult year in 2018 due to stagnant retail sales and increased competition in the craft beer market. The decision to lay off a significant portion of its brewing production team was a necessary step in restructuring operations and adapting to the changing market conditions. As the craft beer industry continues to evolve, it is crucial for breweries to remain agile and explore new avenues for growth and consumer engagement.