Washington breweries are turning to lower-alcohol beer as drinkers cut back, while the state’s wineries lean on premium bottles. That’s the picture in an Oct. 26 report from The Portland Focal. The report is the only source for this post, and the Bureau has not independently confirmed its figures.
Why Washington breweries are trying lower-alcohol beer
The report says Washington breweries have a different option than wineries. Drinkers are less willing to pay a premium for beer, but breweries can more easily make nonalcoholic and lower-alcohol versions. Barry Chan, co-founder and head brewer of Seattle’s Lucky Envelope Brewing, said the brewery has tested “mid-strength” beers at 3% to 4% ABV, along with lighter styles.
According to the report, those beers matter more now in a market long known for strong Northwest IPAs. Breweries also face competition from canned cocktails, cider and other drinks, and inflation is raising costs for both businesses and customers. The report says hop acreage has declined and several Washington breweries have shut down. It does not name them.
The numbers in the report
- A Gallup poll cited in the report found 54% of U.S. adults said they drink alcohol, matching a record low for the second straight year. About half of people under 35 said they drink at all.
- The Washington State Wine Commission says actively farmed vineyard acreage fell from about 60,000 acres to 35,000 over the past two years.
- Washington ranks among the top five states for craft breweries and is the second-largest wine-producing state after California.
Wineries go premium
Chris Stone, deputy director of the Washington State Wine Commission, said wineries face a global oversupply. He said Canada, previously Washington wine’s largest export market, has effectively disappeared because of tariffs and trade disputes. Wines at $10 to $15 a bottle are hardest hit, while wines at $50 and up are doing well. Woodinville’s DeLille Cellars, which sells bottles at roughly $40 to $160, has benefited from that demand, CEO Tom Dugan said.
Stone described the moment not as a collapse but as “a reset” after rapid growth, in the report’s paraphrase.
What it means beyond Washington
Lower-alcohol IPAs are showing up elsewhere too. In San Diego, Bay City Brewing’s 3% Getaway Day is one example. Lower-alcohol beer is one way for Washington breweries to keep drinkers who are cutting back, and the Bureau will watch for more Washington brewers to name specific beers.
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