Brewscape: The Latest Craft Beer Brand News

Rhinegeist Enters NA Beer Space with Ghost Haze & Pils, Adds Cincy Light Lime

Rhinegeist is ghosting alcohol. The Cincinnati craft brewery will add its first non-alcoholic (NA) beer to its portfolio later this summer.

Ghost is an “affiliated brand” that plays on the “geist” name, meaning ghost or spirit, Rhinegeist CEO Adam Bankovich told Brewbound.

The NA beer is one of two big portfolio additions for Rhinegeist this year, with Cincy Light’s first line extension, Cincy Light Lime (4.2% ABV), rolling out now on draft.

Ghost Haze and Ghost Pils will launch in 12 oz. can 6-packs across Rhinegeist’s full nine-state footprint – Ohio, Pennsylvania, West Virginia, Kentucky, Tennessee, Indiana, Illinois, Michigan and Wisconsin – in mid-August.

Conversations about NA beer have been ongoing since Bankovich joined Rhinegeist in fall 2022. But the company didn’t have a pasteurizer or the space for one. NA beer production is a difficult endeavor to take on due to food safety concerns.

“We got comfortable with this idea that maybe we just don’t make our own non-alc,” Bankovich explained. “If we can’t make it and it’s of the same quality as all the beer and cider and everything that we make, that’s OK.

“We can still put our stamp on it if we have a partner that we trust,” he continued.

Enter Sustainable Beverage Technologies (SBT), its BrewVo technology and their partner facilities.

SBT has worked with other craft breweries to create NA beers, most notably Deschutes Brewery. Rhinegeist is SBT’s latest partner brand, with production of the Ghost line being pulled forward due to initial sales forecasts exceeding expectations, Bankovich said.

With a mid-20s share of craft beer in the Cincinnati market, Rhinegeist expects to gain a significant piece of NA share in its home market.

“There’s no reason why we shouldn’t have some share of the non-alc beer market, where we have that much share of the craft beer market,” he said.

Rhinegeist is projecting “really modest” growth this year, with the company targeting around 1.6 million cases in 2025, following 7.5% growth in 2024, Bankovich said. Forecasting the impact of NA beer on the business this year is difficult due to scan data not capturing direct-to-consumer (DTC) e-commerce sales, Bankovich explained. However, DTC sales aren’t likely to be part of Rhinegeist’s strategy, he added.

“For now, it’s really modest expectations,” he said. “[NA is] a really tiny bit of our plan for this year, but it could absolutely grow into something meaningful.”

Before Ghost’s arrival, Rhinegeist is pushing out Cincy Light Lime on draft, which hit the Cincinnati market two weeks ago.

Rhinegeist’s previous plan was for a fall release ahead of resets, but positive feedback from consumers led the brewery to kick out Cincy Light Lime faster. Rhinegeist will follow draft with 16 oz. single-serve cans in June and 12-packs cans later in the month, Bankovich said.

“We’ve got some key retail partners that are really excited about [16 oz. singles], which is a new way for us to launch something to both capitalize on summer, but not get the full volume package out there just yet,” Bankovich explained.

Cincy Light Lime’s arrival comes nearly two years after the launch of Cincy Light in June 2023.

Beer Serves America Study: Industry Generated $471B in Economic Output

The U.S. beer industry generated $470.96 billion in economic output in 2024, holding 1.58% of the country’s gross domestic product (GDP), according to the biennial Beer Serves America study commissioned by the Beer Institute (BI) and the National Beer Wholesalers Association (NBWA).

Beer’s economic impact increased by around $61.76 billion compared to the last survey, which covered 2022, when goods and services reached $409.2 billion, with a similar GDP, according to the survey conducted by John Dunham & Associates (JDA), using data from Data Axle, industry sources and government publications.

The beer industry alone directly generated $179.96 billion in economic output, while suppliers contributed $146.33 billion and induced output amounted to $144.66 billion.

The total economic output of beer outstripped every alcohol category, BI chief economist Andrew Heritage shared during a call with members of the trade press.

The spirits industry generated $250 billion in economic activity and supported more than 1.7 million jobs in the U.S. last year, according to the Distilled Spirits Council of the United States. In 2022 (the most recent year in which data is available), wine generated $276 billion in annual output and supported 1.84 million jobs. Beer dwarfed both categories’ economic output and employment.

“Americans not only love beer, but beer is an economic powerhouse,” Heritage said during the briefing.

Amid industry volume declines, the growth in economic output was driven by two years of inflation, price increases, premiumization, innovation and increased wages and employee benefits such as health insurance, NBWA chief economist and VP of analytics Lester Jones told Brewbound.

“The good news is that beer has kept pace and that demand for beer has been able to support the upward pressure on retail wages,” Heritage added.

In addition, for every $1 invested in the beer industry, $2.31 was generated within the U.S. economy, Heritage said, referring to the industry’s “multiplier effect.”

“Beer is connected to local economies in a way that really not very many industries are,” Heritage continued. “You’d be hard pressed to think of an industry that has a manufacturing plant the way that there’s a brewery in every single congressional district.”

Rabobank: Cell Phones, Less Disposable Income and Demographic Shifts to Blame for Gen Z Drinking Less

Bev-alc industry members continue to tout concerns that Gen Z is drinking less, with many blaming the generation’s increased attention to health and wellness versus previous generations.

However, that narrative is “greatly overblown,” according to Rabobank senior beverage analyst Bourcard Nesin in a recent report from the financial services company.

Nesin turned the narrative on its head, noting that while bev-alc consumption is down for Gen Z consumers – both of legal drinking age (LDA) and underage – their habits could actually be a good thing for the bev-alc industry.

“In particular, we find that Gen Zers’ alcohol consumption will likely increase significantly as they age, such that by their mid-30s, their consumption will be much closer to that of previous generations,” Nesin wrote. “This is an ideal outcome for the alcohol industry, which can celebrate the declines in underage drinking and binge drinking, while still benefiting when Gen Zers reach their more mature and responsible prime spending years.”

Earlier this year, the U.S. Bureau of Labor Statistics (BLS) released annual bev-alc spending numbers by generation, shocking many industry members with the realization that Gen Z (those born between 1997 and 2012) spends more than 87% less than the next youngest generation, millennials.

Households led by Gen Z consumers collectively spent $3.6 billion on bev-alc in 2023, compared to $25.5 billion by millennial-led households, $27.5 billion by Gen X households and $25.5 billion by baby boomers.

However, comparisons are misleading, according to Nesin. The data includes all Gen Z consumers, not just LDAs, comparing the bev-alc spending of 13- to 27-year-olds, with the spending of generations made up entirely of LDA consumers. More importantly, less than half of Gen Z consumers “have established an independent household,” so the majority of the generation is not included in the data.

As a result, comparing spending across generations fails to “distinguish between shifts in behavior driven by life stage and shifts in behavior driven by generation,” Nesin wrote. Other life stage factors include many Gen Z consumers are working entry-level jobs or working to obtain college degrees, and “don’t have any money to spend on alcohol.”

“This was also true of millennials, Generation X and baby boomers when they were in their twenties,” Nesin wrote.

What provides a more accurate picture of Gen Z bev-alc spending versus older generations is to look at what percentage of consumers’ income is spent on bev-alc. When doing so, Gen Z doesn’t look that different compared to its counterparts.

As of 2025, Gen Z consumers spend about 0.72% of their after-tax income on bev-alc, in line with millennials (0.72%) and the national average (0.73%). Gen Z consumers spend less of their income on bev-alc versus baby boomers (0.83%), but spend more than Gen X (0.65%).

Where spending has declined is in comparing that percentage to generations when they were of a similar age, as “younger people used to spend a much higher share of their income on alcohol,” Nesin wrote.

Between 2012 and 2013, households led by people under age 30 spent 1.11% of their after-tax income on bev-alc, and 0.68% on non-alcoholic (NA) beverages, Nesin reported, citing BLS data. Between 2022 and 2024, the percentage spent on bev-alc declined to 0.74%, with 0.63% spent on NA beverages.

The decrease isn’t unique to Gen Z, but is steeper than previous generations. Between 2012 and 2013, households led by people over age 30 spent about 0.6% of their after-tax income on bev-alc, and 0.57% on NA beverages. Between 2022 and 2024, the amount spent on bev-alc fell to 0.61%, while spending on NA beverages increased to 0.64%.

What can be accurately compared among generations is underage drinking, which has declined significantly among Gen Z consumers.

In a 1991 survey by Monitoring the Future, 64.4% of high school seniors reported they “had been drunk at least once in their lifetime.” As of 2024, that percentage had fallen to 33%.

Gen Z’s concerns over the negative effects of bev-alc on their health has been blamed by many for this decline, but that’s not necessarily the case, according to Nesin. The same survey asked respondents whether they perceived a “great harm” from consuming “five or more drinks once or twice each weekend.” Between 2008 and 2019, the percentage of respondents who said yes remained consistent, between 46% and 49%.

Note: In 2021, Monitoring the Future changed its methodology for this part of the survey, so data after is “not comparable,” Nesin noted. For transparency, the percentage of respondents who perceived a risk from 2021 to 2023 was between 34% and 39%.

A bigger influence on Gen Z’s habits is the introduction of cell phone culture, according to Nesin. Most of the decline in underage drinking happened after 2012, with the percentage of high school seniors reporting drinking falling from about 50% in 2012 to 35% a decade later.

2012 was also “about the time when the use of mobile devices became an ubiquitous part of teenage life,” Nesin wrote. The share of the population aged 12 and older who own a smartphone was around 31% in 2011, and increased to 44% in 2012, according to a 2022 report from Edison Research and RaboResearch. As of 2021, that number had increased to 88%.

With increased cell phone use comes numerous hits on bev-alc spending, including:

A decline in in-person social gatherings now that digital connection is more accessible, in turn affecting the number of occasions young people have to purchase and consume bev-alc.

The use of location tracking, as “every parent with teenage children can track their location 24 hours per day” thanks to their cell phone, adds more risk to underage gatherings with alcohol.

And the ease of access to cameras and social media, which increases the risk of an underage person being filmed consuming alcohol and the consequences of being caught, as school administrators – and college admissions teams – can see what young people are doing.

The true impact of cell phones on future bev-alc consumption by Gen Zers is unknown, Nesin noted.

“On one hand, the move away from in-person socialization toward social media seems like a permanent shift with consequences for young people’s well-being that go far beyond alcohol consumption,” he wrote. “If one assumes that this is the factor driving the declines in alcohol use, then future consumption seems unlikely to recover to historic norms as Gen Zers reach their prime spending years.

“However, if the main driver is universal parental surveillance and a loss of privacy making underage drinking a far riskier activity than it was in the past, then that is a condition or restriction that will disappear as Gen Z becomes more independent during later years of adulthood,” he continued. “Ultimately, these facts together suggest that as they age, Gen Z will probably drink less than previous generations, but that gap between Gen Z and other generations will shrink significantly over time.”

Brewers Association: Craft Volume -4% in 2024, to 23.1M Barrels

Craft brewers’ collective production declined 4% in 2024, to 23.1 million barrels of beer produced, according to the Brewers Association’s (BA) = annual craft brewing production report.

The trade group representing small and independent craft breweries described 2024’s numbers as “highlighting the new realities of a maturing market in a rapidly evolving environment.”

“In a mature market, not every year is going to be defined by substantial growth,” BA staff economist Matt Gacioch said in a press release. “While progress may not come in additional production volume, it can still come in honing operations, business practices, and world-class beer.”

Although craft’s volume declined, its market share by volume held steady year-over-year (YoY) at 13.3%, even as the overall U.S. beer market’s volume fell (-1.2%).

Craft made up nearly a quarter (24.7%) of total beer market retail dollar sales in 2024. Driven by price increases and onsite sales, the retail dollar value of craft increased 3% YoY, to around $28.9 billion.

The number of U.S. craft breweries in operation declined to 9,612 in 2024, which breaks out to:

1,934 microbreweries;

3,389 brewpubs;

3,695 taproom breweries;

266 regional craft breweries.

In 2024, 9,680 total breweries (craft and non-craft) operated in the U.S., a decrease from 9,747 in 2023.

The BA also adjusted its opening and closing numbers for 2024, with closures (501) outpacing openings (434) for the first time since 2005. The BA reported preliminary numbers in December, with 399 brewery closures and 335 openings.

The number of jobs in the craft brewing industry increased 3% versus 2023, to 197,112. The BA said the increase in jobs was due to a “shift toward hospitality-focused models such as taprooms and brewpubs, which create more jobs in local communities.”

The BA pointed to several headwinds facing craft brewers “rising ingredient costs, shifting consumer preferences, and increased competition in a saturated market. Tariffs on imported brewing equipment, steel kegs, aluminum cans, and key ingredients such as hops and malt only exacerbate these financial pressures.”

The organization added that those issues are exacerbated for small brewers operating on “tight profit margins,” leading them to “delay expansion plans, raise prices, or absorb losses.”

Ball CEO Pushes for Beer Price Cuts, Discusses Tariffs Impact and Recession Resilience

Ball Corp. chairman and CEO Daniel W. Fisher has once again called on major beer manufacturers to deploy “more aggressive pricing” strategies to “push volume,” suggesting those strategies have worked for energy drink companies and other non-alcoholic (NA) beverage producers.

“Non-alcoholic, in general, there’s been enough innovation in that segment, along with more constructive pricing to drive volume,” Fisher said during Ball’s 2025 Q1 earnings report, echoing similar sentiments made on earnings calls last year.

“You haven’t seen that on the beer side.”

Fisher explained that non-alcoholic beverage manufacturers have been innovating and chasing volume, with “moderate pricing in line with CPI [Consumer Price Index], maybe even take a little less than that and go back and get that growth.”

The expectation for beer producers is to moderate pricing during the peak summer selling season in order to move product, but thus far, beer is “a little behind” compared to NA producers.

“I don’t think anybody’s happy where mass beer is here through the first quarter,” Fisher said. “I’m not surprised that they’re going to have to use the affordability lens and push that.”

Nevertheless, Fisher expressed cautious optimism that beer producers will lower prices and increase their marketing efforts to drive volume and sales this summer.

Beer pricing was just one of the hot topics to come up during the call with Ball leadership, who also fielded several questions about tariffs, including the 25% Section 232 tariffs enacted by President Donald Trump on aluminum and steel imports in March.

Throughout the call, Ball execs referred to the company’s “defensive business model,” as well as its “global footprint” as advantages, despite volatility caused by tariffs and “geopolitical dynamics.”

Despite those headwinds, Fisher referred to the start of 2025 as “very constructive” and the tariffs as manageable thus far. The 232 tariffs have amounted to “three-quarters-of-a-cent to a-cent-a-can impact,” which Fisher called “really negligible in the grand scheme of economics.”

“The wild card will be the ongoing shock-and-awe strategy,” he said. “How quickly does that translate into real, identifiable trade deals? Once we see one or two trade deals show up, it starts to really enable us to frame these scenarios and work a problem set that’s identifiable.”