Last week, I had the opportunity to speak to Corey Dickinson from Community Beer Company on changes to the beer industry during COVID-19. This interview highlighted the cautious period that craft breweries were in, but also showed that creativity and adaptability would help these businesses succeed. New issues are now arising every day for taprooms, like the slow decline of loans from the Small Business Administration which resulted in 14% less brewery constructions in June 2020 compared to last year. This by itself would be very troublesome if you didn’t also add the six additional breweries being shut down in Texas since August 1st due to declining sales. Breweries remain optimistic though by creating nonprofit partnerships, canned beer distribution, and new flavor profiles. Currently, local taprooms are experimenting with ideas like funnel cake ales or cotton candy IPAs to celebrate the State Fair of Texas and tap into that demographic. Could this be enough to hold breweries above water while they wait for TABC restrictions to become more flexible? I reached out to Madeline Rawicki, the director of events at Celestial Beerworks, to get more information on craft beer in this current climate.
Hello Madeline, what have been the main sales drivers moving forward with on premise alcohol sales still under certain restrictions?
Nothing drives sales for us more than a delicious new beer release, especially if it’s a heavy-hitting triple IPA or collaboration with another brewery. Dallas consumers have been incredibly supportive of buying local since the start of the lock downs back in March, but we are fighting that ubiquitous quarantine-fatigue by continually adding variety to our offerings, whether that be in the beer style, new merchandise, or promoting virtual events and competitions.
What are some promotions you have in place to entice customers to drive out if there might be closer beer options?
We want our profits to work towards the betterment of our community, so we continue to choose various organizations to support through percentages of sales, including The Innocence Project, the Polaris Project, DFWeats, The Homes for Children Corp. and more. We also continue to partner with food pop-ups and other local businesses to try to offer more bang for the buck, as an all-in-one pick up option. We’ve worked with Moreish Donuts, Kitty Bunny Bakery, Kitchen Zus, Roodie’s Shack, De Leon Provisions, Dean’s BBQ and others to include food and treats with our cans – and, of course, we continue to offer new, fresh and juicy beers to entice our customers to keep coming back!
Has the brewery had any major reorganizing where employees needed to learn new roles during COVID?
We have reorganized time and time again to comply with the ever-changing rules. Luckily, the Celestial staff are all rock stars and continue to show flexibility and understanding in these uncertain times. We switched to a completely to-go model in March adding online ordering to our walk-up sales which the startenders transitioned to seamlessly. Our production team worked tirelessly to switch to a mostly canning model, adding in hours of packaging and prepping. We used the “down-time” to work on projects that would add value to the taproom experience and guarantee COVID-safety. When we were allowed to re-open in June, we excitedly changed our model to accommodate both tap room sales and safety, as well as continuing our online sales and walk-up orders, only to be told that we had to shut-down shortly after. We now wait eagerly for news of lowered restrictions, as we’d love to bring people, events and joy back into the tap room, knowing that we can and have done so safely and successfully.
A report by Beverage Dynamics, a national magazine highlighting off-premise alcohol retailers, states that consumer behavior was noticeably becoming less exploratory during COVID and people were simply opting for a few brands they trusted. Do you see this as a continuing issue post-COVID as restrictions are lifted again?
I am of the optimistic mindset that consumers will explore more than ever before once restrictions and fear are lifted. After quarantining for so long, I believe the idea of venturing into the unknown and experiencing that which has been unavailable will be more enticing. It may take a little while for everyone to feel comfortable heading back out into the world, but hopefully they can see that businesses are doing all we can to make safety a priority while offering a space to feel in community again.
Are there any key lessons that the craft brewery business or taproom model will gain from COVID?
Running a business can never be a static venture, as innovation and forward thinking are crucial to staying relevant. No one could have predicted the COVID pandemic and congruent shut-down, so we’ve seen that having an adaptive team, creative outlook, and an understanding of our consumer base have been our saving grace. As long as breweries and taprooms are allowed to produce, we will continue to adapt and to innovate. We can only hope that the red tape doesn’t choke the industry completely.
