On a chilly Wednesday afternoon, Mike Doble, co-owner of The Explorium Brewpub, and his wife Joan, who is also a co-owner, found a cozy spot by the fireplace at Good City Brewing located on Milwaukee’s east side.

The brewery is set to undergo a name change soon. Doble recently purchased Good City Brewing, just days ago. He has ambitious plans for the four taprooms located throughout the Milwaukee region. 

“Let’s face it, no hospitality brand —  whether you’re a brewery or a restaurant or a fast food joint or a pizza joint, whatever — nobody’s immune from closing,” Doble said. 

The recent acquisition occurs in the context of four craft breweries shutting down in Milwaukee last year, a city renowned for its deep-rooted beer culture. This trend can be attributed in part to a decline in beer consumption among younger demographics and an overall decrease in the frequency of beer drinking.

Matt Gacioch, staff economist for the Brewers Association, said for a period, craft breweries — known for their unique styles of beer — were “booming.”

However, that is no longer true.

Gacioch remarked, "What we've observed over the past few years is that those prosperous days are now behind us." 

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In 2024, the number of breweries that shut down exceeded those that opened throughout the country.

Over the last few months, Milwaukee has seen the closure of several craft breweries, including City Lights Brewing Company, Enlightened Brewery Company, and MobCraft Beer and Company Brewery. A reporter from WPR attempted to contact the previous owners of these establishments but was unsuccessful. However, insights into their decisions to shut down can be gleaned from various social media updates shared by the breweries. 

In a Facebook post, City Lights Brewing Company said the move came after “numerous challenges have made it unsustainable to continue.” A Facebook post from the owners of Good City Brewing said the “craft beer industry has experienced seismic shifts and its future will require strategic alliances.” A Facebook post from the owner of MobCraft Beer also mentioned “financial struggles.”

The Brewers Association found brewery closings outpaced brewery openings in 2024, as there were 335 new brewery openings and 399 brewery closings last year, according to data from the trade group. Inflation, changing habits from consumers and increased competition in the craft beer market has made it difficult for some craft breweries to stay afloat, Gacioch said. 

"According to him, all these elements contribute to making the operation of a successful brewery more challenging than it was in prior years."

A Gallup poll found fewer adults under the age of 35 are drinking alcohol compared to two decades ago. Gacioch also said beer drinkers are now drinking beer less frequently.

Meanwhile, the Brewers Association found U.S. beer production and imports were down 5 percent in 2023, while “craft brewer volume sales declined by 1 percent.”

“The market is contracting,” stated Stanislav Dobrev, who serves as the chair of strategic management at the Lubar College of Business at the University of Wisconsin-Milwaukee. “This is a fact we cannot ignore.” 

The closures come in a city that has a nearly 200-year history with beer brewing, according to UW-Milwaukee’s “Encyclopedia of Milwaukee.” Visit Milwaukee, the city’s tourism bureau, even has a webpage dedicated to brewery tours tourists can take across the city.

“Milwaukee has proudly held the title of Brew City for many years, but even the most cherished traditions must adapt,” stated Peggy Williams-Smith, president and CEO of Visit Milwaukee. “The recent shutdowns and transitions in ownership of local breweries highlight the changing dynamics of the craft brewing sector, influenced by changing consumer tastes and economic challenges.”

"The market has reached a saturation point."

In 2021, Ron Hockersmith launched Amorphic Beer in the Riverwest area of the city. Over the years, he has observed that many craft beer enthusiasts have left the city as they age. Additionally, he feels that the Gen Z demographic shows a notable lack of interest in craft beer.

"Hockersmith noted, 'The market is saturated, and it's clear that there are fewer craft beer drinkers in the city of Milwaukee compared to the surrounding metropolitan area.'"

Hockersmith noted that there is a declining interest in craft beer selections among businesses throughout the city.

"According to Hockersmith, bars and restaurants are grappling with rising expenses for various reasons, leading them to seek higher profits on beer to remain viable. Consequently, I have noticed a trend among many establishments leaning towards craft beers that are more affordable and promoted by major beer distributors." 

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Dobrev highlights another recent trend in the industry: the consolidation of craft breweries and the acquisition of smaller breweries by larger ones. He noted that this is a typical phase in the evolution of the industry. 

Dobrev is confident that the shutdowns will not adversely affect tourism in the state’s biggest city. 

“I believe there are still numerous craft breweries available, and I’m not concerned about a shortage of them,” Dobrev stated.

By Doble’s count, there are still 40 craft breweries operating in the Greater Milwaukee area. The Brewers Association also says there are 266 craft breweries in Wisconsin, ranking the state 13th in the nation.

Craft breweries compelled to adapt.

The Explorium Brewpub, which has recently acquired Good City Brewing, was established in 2016 and operates locations in both Greendale and Milwaukee.

When discussing the evolving landscape of the craft beer sector, Doble expressed his enthusiasm for the upcoming challenges. He mentioned that they intend to increase their production of gluten-free beers and explore additional alcoholic beverages for those who prefer alternatives to beer.

"Doble stated, 'It's essential to meet the demands of the neighborhood and our customer base. If our customers' needs are changing, we must adapt accordingly.'" 

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Hockersmith is also producing beers that have a lower alcohol content. Sales for nonalcoholic beers increased more than 30 percent from 2022 to 2023, according to a Wall Street Journal report.

Hockersmith mentioned, “Creating a beer that is low in alcohol yet packed with flavor is quite challenging. However, we've been working on it for nine months.” 

Gacioch mentioned that it is the responsibility of each individual craft brewery to determine their own strategies for remaining competitive.

Gacioch remarked, "I believe that enhancing our offerings and creating a more welcoming and inclusive environment for a diverse range of consumers will be a key indicator of success in the years ahead."