Anheuser-Busch shifts U.S. production, closes two breweries and sells Newark site
Anheuser‑Busch announced plans to shutter its Fairfield, California and Merrimack, New Hampshire breweries and has sold its Newark, New Jersey facility, shifting production into its remaining U.S. network as part of a broader manufacturing consolidation (Food Dive, 2025). The company said the moves will allow reinvestment in the remaining operations and growing brands while offering affected employees roles elsewhere in the company, with roughly 475 full‑time positions impacted by this round of changes (Food Dive, 2025). Observers note the closures follow a multi‑year modernization program that includes nearly $2 billion of network investment and recent upgrades at other plants in Los Angeles, St. Louis and Baldwinsville, New York (Food Dive, 2025). The sale of the Newark brewery to the Goodman Group completes the exit of that historic site from Anheuser‑Busch ownership (NJBiz, 2025). Source: Food Dive, 2025, NJBiz, 2025.
Industry reaction: efficiency drive amid capacity rationalization
Analysts and trade outlets frame the moves as part of a sector‑wide efficiency and network optimization push, with large brewers reallocating volumes to higher‑utilization plants while investing in automation and scale to defend margins in a slower growth market (Beer Business Daily, 2025). Union statements highlight contractual protections for affected workers but underscore the local economic impact of brewery closures in legacy production cities (NJBiz, 2025). Source: Beer Business Daily, 2025, NJBiz, 2025.
Craft beer market growth projections and continued premiumization
Market research continues to project strong medium‑term growth for craft beer globally, with estimates placing the craft segment at USD 142.6 billion in 2024 and a projected compound annual growth rate of roughly 8.7% through 2033, driven by demand for unique, local and premium offerings (IMARC Group, 2025). The sustained premiumization trend is supported by on‑premise data showing consumers opting for higher‑quality choices and a willingness to pay more for distinctive beer experiences (Craft Brewing Business, 2025). Source: IMARC Group, 2025, Craft Brewing Business, 2025.
Non‑alcoholic and low‑ABV beers accelerate as mainstream consumption shifts
On‑premise reporting indicates explosive growth for non‑alcoholic beer categories, with year‑over‑year gains outpacing traditional beer sales and particular surges in styles such as NA IPAs and stouts, reflecting broader consumer moderation and health‑forward drinking trends (Craft Brewing Business, 2025). Industry trend coverage places low‑ and no‑ABV innovation among the top tactical responses for craft brewers seeking to capture occasions from health‑conscious and moderation‑minded consumers (Tastewise, 2025). Source: Craft Brewing Business, 2025, Tastewise, 2025.
Style and product innovation: hyper‑localization, hybrid styles and sustainability
Trade editors identify hyper‑local sourcing, hybrid beer‑RTD formats, fruited sours and experimental fermentation as leading innovation vectors for craft brewers in the near term, while sustainability initiatives around ingredient sourcing and packaging are increasingly material to brand positioning (Tastewise, 2025; Hop Culture, 2025). These strategic moves aim to differentiate offerings as the craft segment balances growth with rising production costs and selective consumer demand (Tastewise, 2025). Source: Tastewise, 2025, Hop Culture, 2025.
Brewers Association: contraction continues despite pockets of success
Association reporting shows that brewery closures have continued to outpace openings through mid‑2025, with the number of operating craft breweries easing from prior peaks even as successful brands and segments expand their footprint (Brewers Association, 2025). That dynamic underscores an industry realignment where scale, route‑to‑market and occasion capture matter more than ever for survival and growth. Source: Brewers Association, 2025.
Implications for operators and suppliers
Wholesale consolidation by major brewers increases available contract brewing capacity and may tighten hops and malt procurement dynamics as buyers rebalance supply chains; simultaneously, craft brewers face both opportunities in premiumization and cost pressure from raw material inflation, pushing a mix of limited releases and low‑ABV innovation to retain relevance (Beer Business Daily, 2025; Tastewise, 2025). Source: Beer Business Daily, 2025, Tastewise, 2025.
Source: Food Dive, 2025, NJBiz, 2025, Beer Business Daily, 2025, IMARC Group, 2025, Craft Brewing Business, 2025, Tastewise, 2025, Hop Culture, 2025, Brewers Association, 2025.