Brewers Association Cuts 23% Of Staff

The Brewers Association (BA), a national trade group representing the interests of small and independent U.S. beer companies, has been forced to slash nearly a quarter of its workforce as a result of the coronavirus pandemic. 

On Monday, the not-for-profit trade organization said it laid off 23% of its nearly 80-person staff and implemented “tiered salary reductions” for its management team.

“We will be forever changed by the pandemic and economic crisis facing our organization,” the BA wrote on its website, noting that cuts were necessary in order to “maintain the long-term viability” of the trade group.

In explaining the decision, the BA said it “thoughtfully, carefully, and painfully weighed options” before reducing headcount and management compensation.

“We believe these actions will help the association weather the storm at this time and to remain committed to its purpose — to promote and protect American craft brewers, their beers, and the community of brewing enthusiasts,” the BA added. 

Last month, as the coronavirus was rapidly spreading across the U.S., the BA was forced to cancel its annual Craft Brewers Conference & BrewExpo America trade show, which attracts about 13,000 beer industry professionals from across the world.

That event was scheduled to take place in San Antonio, Texas from April 19-22, and eventually moved online, but not before the BA agreed to “provide full refunds of conference registration and booth fees, sponsor payments, and World Beer Cup competition entries.”

The BA also canceled its popular consumer beer and food pairing event, SAVOR, which was set to take place in Washington D.C. on May 15. It also issued full refunds for that event.

Events are a significant source of revenue for the BA, accounting for more than $16 million of the $27.7 million (58%) it generated in 2019, according to the group’s most recent Stewardship Report.

The BA’s most prominent event is the Great American Beer Festival (GABF), which draws 60,000 beer lovers to Denver annually. The 2020 gathering is scheduled to take place between September 24-26, but the BA has yet to announce whether it will be canceled. 

Earlier this month, the 2020 Oktoberfest in Germany was canceled due to concerns about the spread of COVID-19, prompting some beer industry watchers to question whether the GABF would also be called off. 

“Seems incredibly unlikely that GABF gets held this year,” beer industry writer Andy Crouch wrote on Twitter. “Even assuming governments allow huge gatherings, will enough people want to risk attending a massive festival to make it financially worthwhile for the organizer? Doubtful at best.”

Beer Advocate cofounder Jason Alström agreed, replying, “without a vaccine and proper testing I can’t see it happening.”

Meanwhile, the BA’s upcoming Homebrew Con, which is scheduled for June 18-20 in Nashville, Tennessee, is moving forward as planned for now. That event is expected to draw 2,500 attendees.

“We have not made any changes to the dates or location,” the BA wrote on the event website on April 13. 

Earlier today, Nashville Mayor John Cooper extended the city’s “Safer at Home” order through May 8. Under the order, groups of 10 or more are prohibited. 

Denver’s stay-at-home order is also in effect until May 8.