The pandemic has negatively impacted the food and beverage industry, and Napa Valley's beer industry has been hit particularly hard. Since
2020, seven breweries and taprooms have closed in Napa Valley for
various reasons, including pandemic shutdowns, rent hikes, and landlord
disputes.
- Despite the recent
challenges, three shuttered businesses plan to make a comeback,
encouraged by reports that younger generations drink across all beverage
categories, including beer.
- Currently, only a few breweries and taprooms are left in Napa Valley, with most tourists primarily interested in wine.
- A lack of demand for beer in Napa Valley isn't the driving factor in most of the brewery closures.
- Commercial space is limited in Napa Valley, with most of the region preserved for agriculture.
- Although
rent in heavily touristed areas is set at a premium, the beer margins
aren't as good as wine, making it challenging for beer businesses to
survive in these areas.
- Despite the challenges, Tannery Bend has opened a new Napa production space and is building a second location.
