The $1 billion craft beer segment in cans and bottles at liquor retailers went backwards for the first time in calendar 2022 as people returned to pubs and bars, leaving many craft brewers feeling the pinch from sharp rises in costs and a jump in interest rates.

Size, scale and a strong balance sheet are becoming more important in the craft beer market as raw material costs rise, government excise tax jumps higher and households cut back on discretionary spending.