Morning. Let's talk about taprooms. They're doing particularly well in recent months and in the last few years, and so I want to extend the consideration to you.
Employment is up while volume is down. That math only works if onsite sales are carrying more of the load. I've been watching this shift for a while—here's what it means.
The Brewers Association reports that craft brewing employment grew 3% in 2024 even as production volume declined. That divergence tells a story: the economics of the industry are shifting toward taprooms and brewpubs. That divergence reflects a structural shift: breweries are increasingly anchored by taprooms and brewpubs rather than distribution. Onsite sales—taproom pours, to-go package, and event revenue—are outpacing wholesale in many markets. For small and mid-sized breweries, the taproom is often the most profitable channel.
The Economics of Onsite vs. Wholesale
Wholesale distribution involves multiple margin layers: distributor, retailer, and often promotional support. By the time a keg reaches a bar, the brewery may retain 25–35% of the retail price. In the taproom, the brewery captures the full margin—often 70% or more on a pint—minus labor, rent, and overhead. For a brewery with limited capacity, selling a higher share through the taproom improves unit economics.
Why the Shift Is Accelerating
Several factors are at work. First, distribution is crowded. Getting and holding tap handles and shelf space requires sales effort, promotional spend, and competitive pricing. Second, taprooms create direct relationships. Customers who visit the brewery become repeat buyers and brand ambassadors. Third, state laws have evolved. Many states now allow direct-to-consumer sales, to-go package, and in some cases shipping, which were restricted or illegal a decade ago.
What a Taproom-First Strategy Requires
Taproom-first is not simply "open the doors and pour beer." It requires hospitality: staff training, event programming, food or food partnerships, and an environment that draws repeat visits. It also requires operational discipline. Depletion tracking, inventory management, and cash handling must be tight. A taproom that cannot account for what it pours will leak margin.
Channel Balance
Few breweries are purely taproom or purely wholesale. Most operate a hybrid: taproom as the anchor, with selective distribution for brand building and volume. The right balance depends on capacity, geography, and competitive dynamics. The trend, however, is clear: breweries that invest in the onsite experience are better positioned in a market where distribution margins are thin and shelf space is scarce.
---
If your taproom is your anchor, tracking depletion and inventory has to be solid. BrewLedger is built for that—see how it works when you're ready.