Hilco Global has issued a timely report on the present state of the craft beer industry, the outlook for existing brewers emerging from the current crisis, and how these  dynamics may create certain opportunities for new entrants to the market.

Indicators Suggest Modest Growth for Craft Brewers That Evolve, Connect and Prepare Now for Post-Pandemic Re-Start, authored by Adam Stump- Managing Director at Hilco Valuation Services, examines factors that have shaped the industry over the past decade and how brewers’ own experiences and actions throughout the COVID-19 period may be the key to unlocking a profitable future for their businesses as the category recovers later this year.  The report also discusses the impact of expected broad-based closures among craft brewers nationwide on industry asset valuations, and how those entering the market or looking to build out capacity may stand to benefit.

“While many brewers may not survive this crisis, for those that do, a greater level of proactivity and innovation than ever before will likely be required to keep and attract customers,” says Stump.  “Balancing the cost of labor needed to deliver an on-premise experience that will draw customers back, with the realities of diminished guest levels due to continued social distancing requirements, may prove to be quite challenging for operators.”

To obtain a copy of the perspective, contact Gary Epstein - Executive Vice President and Chief Marketing Officer, Hilco Global at gepstein@hilcoglobal.com.