Craft beer in Richmond
Richmond, Virginia, was not long ago known as a rather sleepy, southern city often brought up in history books yet not frequently trafficked by visitors. However, in the past 20 years, Richmond has had a boom of young, diverse residents moving to the area. This new vibrant population has brought life to the city in the form of fresh art, new start-ups, contemporary restaurants, and of course, craft beer. In 2018 VinePair named Richmond “The World’s Top Beer Destination for 2018,” citing that in the past ten years, the city has gone from having one craft brewery to 22. Since that award was given two years ago, more than ten additional breweries have opened, and many have begun packaging and selling their beers on a global market.
Enter COVID-19. In Virginia, Governor Ralph Northam enacted a stay-at-home order that lasted approximately eight weeks, from late March through to mid-May, only allowing restaurants and breweries to serve in a takeout capacity. These policies have rocked microbreweries, which primarily rely on most of their income from taprooms, which are typically booming in the spring and summer months. Some already had a broader distribution network in place; however, for the majority, it has been a challenge to make the most out of the takeout capacity until businesses can run as usual again.
The Center of the Universe Brewing Company, a local brewery that runs a taproom as well as supplying grocery stores, estimates that their spring revenue has fallen more than 70% year to year. Other breweries have recorded similar drops, with a few stating a typically slow sales day is currently one of their best. For many, continued this continued hit to their topline could ultimately mean never reopening their doors.
Although alcohol consumption has spiked across the United States during the pandemic, the big winners in this haven’t been the small family-owned breweries but rather the large corporations with well-established and diversified distribution channels. Bump Williams Consulting, which services the beverage alcohol industry, reports an increase in beer sales of 16%, based on dollar value, for this year up to May 10. Consumers, however, have been opting for large packs of “big brand beer.” Budweiser Vice President Monica Rustgi believes that this is because people cling to larger brands they know and trust during times of uncertainty. This may hold some truth; however, the ease and perceived safety of one-stop shopping likely contribute to people buying from big brands instead of getting takeout from their beloved, local microbreweries.
As Richmond enters Stage 2 of reopening, indoor taprooms are allowed to open at half capacity and entirely for outdoor seating. Local businesses are hopeful that they will now begin to see their customer base return following a two-month hibernation drinking sub-par beer.