Craft alcohol industry suffers during pandemic

One in three Texas craft breweries “believe they will have to permanently close in less than three months without some change to the current shutdown order or new economic relief options.” That’s according to a recent survey by the Texas Craft Brewers Guild. It’s not just breweries hurting, so are the distilleries and wineries.

Current state restrictions are such that if a restaurant, bar, or similar establishment (including a tasting room at a brewery, distillery, or winery) has alcohol sales that are 51% or more of its total sales, it’s classified as a bar and may not allow customers on-site under Executive Order GA28.

It’s hitting our local businesses hard. Nate Pruitt, Owner of Bell Springs Winery said sales are down by 80%. “The heart of our business is selling wine and beer direct to consumer via our tasting and tap rooms,” Pruitt said. “We are dying a slow death at this point. Carry-out and shipping was relatively strong when COVID first shut down, but has tapered off heavily during the second wave.” He’s had to lay off staff. “Went from 20 employees down to 3. The majority of our workers were front of the house tasting room attendants at our tasting rooms. I've only been able to keep 2 full time folks who are in production and collectively we are handling the carry-out and shipping orders that do come,” he said.

It’s a similar story at Acopon Brewing Co. “Our brewery was focused on taproom sales and since mid March, that income source has all but disappeared,” John McIntosh said, Co-Owner of Acopon Brewing Co. “Our other main source of sales was distribution to bars, and that has also stopped.”

McIntosh said the restrictions don't make sense. “Bars inside a restaurant can be open, and people can go and sit and drink (without eating), but people are forbidden from sitting on our socially distanced front patio, and doing the same thing. We were hoping that the patio service would be a lifeline for us, but the abrupt about face just left us feeling bitter,” he said.

12 Fox Beer Co. is also doing what they can to stay afloat. “We purchased a can on demand machine to allow for beer to go,” Stacey Hogge with 12 Fox Beer Co. said.

“We are just one of many small family owned and operated businesses that are pulling up our bootstraps and trying to survive. There are quite a few small family owned/operated breweries/ wineries/distilleries without food attached to their businesses (like us). They are in the same boat and we all need your help now more than ever,” She said.

Showing up and buying products directly from these businesses is one way the community can lend their support.

“Since our brewery is the furthest out, we are seeing a dramatic drop in foot traffic for to - go beer. We are small and distribution wasn't in our 5 year business plan, so we are solely depending on people driving the extra mile to buy our beer to go,” Hogge said.

Pruitt says another way people can help is with the purchase of gift cards and McIntosh reiterated the importance of making the trip to the businesses, even if it’s not for a large purchase. “We understand it’s more effort than grabbing beer at the grocery store, but it makes a big difference to the brewery. They don’t have to be big purchases; every little bit adds up,” he said.

It helps these businesses survive and ultimately the local economy. “The hill country has really built up a thriving alcohol tourism business over the last 10 years,” McIntosh said. “This business helps support restaurants, bed and breakfasts, and countless small shops and boutiques. Currently, that whole economic driver is beginning to collapse. The simple allowance to have patio service could mean the difference between surviving or failing to many of these businesses. Gov. Abbott could easily throw that lifeline, but instead he has remained completely mute on the subject, leaving this whole industry to suffer.”