Are we allowed to call it a recession yet?
Ever since the trade war began, California has just been slammed with bad news upon bad news.
First the factories started shutting down.
Then it was the pharmacies – with hundreds going under.
And now even wineries and breweries are falling prey to the turning economy.
Remember when alcohol sales were supposed to be resilient to economic downturns? I do.
But unfortunately, circumstances have become dire enough that even sectors like alcohol are seeing widespread trouble.
And that’s especially true in California, where high home prices and stagnating population have limited economic mobility and dynamism.
California has already lost these breweries:
- Track 7 Brewing Company (Sacramento)
- 21st Amendment Brewery (San Francisco brewpub and San Leandro production facility)
- Main Street Brewery (Pleasanton)
(Have I missed any breweries closing? Drop us a comment and let us know.)
The alcohol market was already due for some contraction due to the combination of oversupply and shifting American demand. (Gen Z drinks less and tends to like spiked sparkling water more.)
Then the trade war decimated US exports, with longtime allies turning on us and especially targeting the alcohol market.
So unfortunately – these probably won’t be the last California breweries to shut down this year.
Stay tuned as this situation develops, and give us a follow to hear more about these and other important food news stories.
Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same
Leave a Comment