Selling or Buying a Brewery

Thinking about buying or selling a brewery? This guide breaks down everything you need to know—market trends, craft vs. mass-market dynamics, real-world SDE and EBITDA valuation multiples, and performance benchmarks that separate top breweries from average ones. Packed with strategic advice on boosting margins, growing loyal customers, and preparing for acquisition, it’s the go-to resource for brewery owners ready to increase their business value and for buyers looking to tap into a resilient, flavor-driven industry.

George Wellmer
George Wellmer

The U.S. beer brewing industry has stabilized after the pandemic’s disruptions and an initial rebound. Industry sales reached roughly $135 billion in 2023, back to pre-COVID levels (nbwa.org). Total production volume was essentially flat, but higher average prices and premium products lifted dollar sales.


Craft breweries remain a key growth segment. In 2024, U.S. craft brewers produced 23.1 million barrels, accounting for 13.3 % of total U.S. beer volume, and generated $28.9 billion in retail sales—about 24.7 % of the beer market by value (craftbrewingbusiness.com). This underscores how premiumization and price increases can drive revenue even when volumes plateau.


Looking forward, analysts expect flat to low-single-digit growth through 2025, with most gains coming from price hikes and a shift toward high-end, specialty, and imported beers, rather than major volume expansion. Consumer return to bars, taprooms, and live events continues to boost on-premise demand, while inflation and the popularity of premium brews support stronger per-unit pricing.


For brewery buyers and sellers, this means:

  • Stable valuations: With revenues holding near or above pre-2019 levels, breweries—especially those with strong brands, taproom traffic, or specialty SKUs—can command solid multiples.
  • Premium positioning pays: Businesses focused on craft beer, specialty styles, or direct-to-consumer experiences remain attractive to strategic acquirers and private equity.
  • Operational efficiency matters: Flat volumes mean profitability improvements (cost control, supply-chain management) can meaningfully enhance value.


The U.S. beer market is fully recovered in dollar terms and maturing in volume, presenting clear opportunities for buyers seeking stable cash flow and owners considering a sale or strategic exit.


Several trends are reshaping the U.S. beer market and will influence brewery valuations, deal flow, and growth strategies over the next few years.


Brewery Key Industry Trends


1. Craft Beer Plateau and Consolidation


After a decade of explosive expansion, craft beer growth has slowed and the market is maturing. In 2024, U.S. craft beer production declined about 4% by volume—the largest drop since 2020—while the number of operating craft breweries fell slightly for the first time in 20 years (9,612 vs. 9,730 in 2023) as closures outpaced new openings (craftbrewingbusiness.com).


Despite the volume dip, craft’s share of the U.S. beer market held steady at ~13% and retail dollar sales grew ~3%, supported by higher prices and strong taproom revenues. The trend signals fewer but stronger breweries focused on profitability, quality, and brand loyalty.

  • Implications for buyers and sellers: Valuations will favor breweries with proven local demand, strong taproom traffic, and direct-to-consumer (DTC) sales. Smaller operators with weak distribution or thin margins may struggle to find buyers without a clear niche.


2. Mexican Import Surge


Imported beers—especially Mexican lagers—are the fastest-growing segment of the U.S. beer market. Imports reached 21% of U.S. beer consumption in 2023, and Mexican brands such as Modelo Especial and Corona Extra now account for about 81% of all U.S. beer imports.


Modelo’s leap past Bud Light to become America’s #1 selling beer in 2023 reflects shifting consumer tastes and savvy marketing. Constellation Brands, which distributes Modelo and Corona, has grown U.S. market share from 6% in 2013 to 15% in 2023.

  • Implications for buyers and sellers: Demand for import-focused distributors and breweries with Latin-flavored product lines is rising. Domestic brewers competing in light lager or premium segments need innovation or partnerships to stay relevant.


3. On-Premise Recovery and Changing Preferences


With bars, restaurants, stadiums, and taprooms back in full swing, about 15% of beer volume now comes from on-premise sales. Draft beer producers and brewpubs have benefited from the return of live events and social gatherings.


However, consumer tastes are evolving. Non-alcoholic (NA) beer sales at bars jumped 33.7% year-over-year in 2024, and ready-to-drink cocktails (RTDs) and hard seltzers are capturing share. Many breweries are responding by diversifying into NA beers, hard seltzers, and in-house cocktail or food programs to broaden appeal.

  • Implications for buyers and sellers: Breweries with strong hospitality and taproom concepts or diversified product lines can capture higher on-premise margins and stand out in acquisitions. Additionally, NA beer is here to stay and a growing segment, particularly with younger consumers.


4. Distribution Pressure and Market Consolidation


Beer distribution is tightening. The National Beer Wholesalers Association Beer Purchasers’ Index (BPI) for craft fell to 20 in March 2025 (well below the neutral 50), signaling distributors are cutting back on craft SKUs.


At the same time, the top two U.S. brewers (AB InBev and Molson Coors) still control over 50% of the market but have lost ~16 points of share since 2013, while brewery counts are starting to contract. Some well-known craft brands have been acquired by larger players, and many independents are pivoting to taproom-centric or direct-shipping models to protect margins.

  • Implications for buyers and sellers: Breweries with established distribution agreements or strong local taproom sales will be more attractive targets. Expect ongoing consolidation and opportunities for strategic roll-ups.


5. Cautious Optimism and “Drink Less but Better”


Despite headwinds, consumer interest in craft beer remains resilient. The share of U.S. adults who drink craft beer climbed to 9.8% in 2024, up from 9.2% a decade earlier. While per-capita beer consumption may be edging lower, consumers are paying more for premium, flavorful brews and unique experiences.


Industry economists forecast modest overall growth through 2027, with craft and independent breweries playing a key role in keeping the category vibrant.

  • Implications for buyers and sellers: A maturing but stable market supports solid SDE/EBITDA multiples for well-run breweries, especially those that emphasize quality, brand strength, and experiential offerings.


Brewery Valuation Benchmarks & Recent Transaction Multiples


Breweries are typically valued on earnings (cash flow) rather than top-line revenue, because margins, equipment costs, and operating models vary widely.
Recent market data shows the following valuation ranges for brewery transactions:


Brewery Seller’s Discretionary Earnings (SDE) Multiples


  • Typical range: 3.2× – 4.2× SDE (peak.stagemarketingdemo.com)
  • Applies mainly to small and mid-sized breweries such as local brewpubs and microbreweries.
  • This is higher than many Main Street businesses (≈2×–3× SDE), reflecting the growth potential and brand value of craft beer.
  • A well-run taproom with steady cash flow may sell near the upper end of 4× SDE, while a low-margin or owner-dependent brewery might see lower multiples.


Brewery EBITDA Multiples


  • Typical range: 4× – 6× EBITDA, with industry averages around 4.2×–4.7× EBITDA.
  • Used for larger breweries or regional craft brands with professional management and scalable operations.
  • Breweries with strong margins, modern production facilities, and wide distribution can exceed 6× EBITDA, while those with operational or market risks may trade closer to 3×–4×.


Revenue and Production Rules of Thumb


While less precise than earnings-based methods, some buyers and sellers reference:

  • Revenue multiples: ~0.5× – 1.5× annual sales (dealstream.com).
    Because operating costs and margins differ dramatically, these top-line metrics are best used as secondary checks.


Brewery Drivers of Premium or Discounted Valuations


Actual multiples can swing significantly depending on:

  • Distribution strength (long-term contracts, grocery or bar placements).
  • Brand power and loyal following (local or national recognition).
  • Growth trajectory and product mix (e.g., popular specialty SKUs, NA beer, or seltzers).
  • Operational efficiency and scalability (modern brewhouse, cost control, professional staff).


Craft vs. Mass-Market Beer Segments: Buyer & Seller Insights


U.S. breweries generally fall into two broad categories—craft breweries and mass-market breweries—and the balance between these segments drives valuation, risk, and growth potential for any brewery acquisition or sale.


Craft Breweries


Small and independent, craft breweries thrive on differentiation: bold flavors, constant innovation, and a strong local or niche identity. They rely heavily on taproom sales, community reputation, and beer enthusiasts’ willingness to pay a premium. Gross margins can be striking—60–70% on direct-to-consumer pints—but revenue often fluctuates with seasons, trends, and the founder’s personal involvement.


Key buyer/seller takeaways:

  • Higher upside, higher risk: Today’s IPA craze can quickly give way to hard seltzers, canned cocktails, or NA beer.
  • Innovation drives value: Breweries with popular limited releases, club memberships, events, and food programs can sustain customer loyalty and command stronger multiples.


Mass-Market Breweries


Mass-market players—large domestic and global brands like AB InBev or Molson Coors—and regional breweries that operate at scale focus on high-volume, consistent production and broad distribution. They benefit from recurring contracts with major distributors, retailers, and restaurant chains, delivering reliable year-round cash flow with lower churn.


Key buyer/seller takeaways:

  • Stable, repeatable revenue: Shelf space and draft lines are secured through long-term agreements, providing predictable income.
  • Lower per-unit margins but high efficiency: Automated production and bulk ingredient purchasing offset thinner gross margins.


Which Brewery Model Attracts Buyers?


For M&A, buyers generally favor breweries with strong distribution footprints or diversified sales because those businesses provide steady cash flow and brand visibility.

  • Premium targets: Regional craft breweries with grocery-store placement and multi-state draft lines that blend craft credibility with mass-market stability.
  • Conservative valuations: Purely local, taproom-only operations unless they possess a cult following or exceptional profitability.


Many successful breweries pursue a hybrid strategy, combining direct-to-consumer taproom sales with wholesale distribution, which smooths seasonal swings, spreads risk, and often commands higher multiples at exit.


Performance Benchmarks: Top-Performing vs. Average Breweries


Breweries differ dramatically in scale, profitability, and operational maturity.
Understanding how top-performing breweries compare with average small operators is essential for buyers and sellers to gauge value, growth potential, and risk.


Scale: Production & Sales

  • Top craft or regional breweries (e.g., top-50 in the U.S.) often produce 100,000–500,000+ barrels annually and generate $10M–$20M+ in revenue.
  • Typical small breweries or brewpubs produce a few hundred barrels per year, with sales often in the $500K–$1M range.
  • Over 90% of U.S. breweries make under 15,000 barrels annually, collectively representing just ~3% of U.S. beer volume (nbwa.org).
  • In effect, the largest 1% of breweries produce nearly all the beer, underscoring how fragmented and small-scale most of the market remains.


Profit Margins

  • Top performers: Often achieve 15–25% net profit, thanks to economies of scale, bulk ingredient pricing, efficient production, and strong distribution.
  • Average small breweries: Frequently operate at ~10% or even single-digit net profit, with some barely breaking even after owner salary.
  • Efficient mid-sized operations—say $5M revenue with $750K+ profit—illustrate how scaling production and optimizing costs dramatically improve cash flow and valuation.


Customer Loyalty & Repeat Business

  • High-performing breweries may derive 70%+ of sales from repeat customers and long-term distribution contracts, ensuring stable year-round revenue.
  • Average breweries often rely on 30–50% repeat business, depending heavily on new visitors and beer tourists.
  • Strong loyalty (e.g., mug clubs, special releases, consistent taproom experiences) lowers customer acquisition costs and significantly boosts value.


Capacity Utilization & Efficiency

  • Top breweries brew at or near full capacity, often running large brewhouses multiple times per day and producing 1,000 barrels per employee annually.
  • Average small breweries may brew only a few times a week, producing closer to 100 barrels per employee, leaving tanks underutilized and per-barrel costs high.
  • Better scheduling, inventory control, and technology drive higher yields and lower unit costs for top operators.


Operational Excellence

  • Leading breweries operate like sophisticated businesses:
    • Standard operating procedures (SOPs) and quality control labs
    • Modern brewery management software
    • Specialized roles (head brewer, sales manager, taproom manager)
    • Strategic expansion planning (multi-site taprooms, packaging lines)
  • Average breweries are often founder-dependent with ad hoc processes and minimal marketing, limiting scalability and resilience.


Valuation Impact

The gap in scale and professionalism translates directly into higher multiples for top performers.

  • A brewery earning $500K SDE but demonstrating growth, efficiency, and brand strength might sell for ~5× SDE (~$2.5M).
  • A similar-sized brewery with weaker margins and owner dependence may only fetch ~2.5× SDE (~$1.25M).

Industry data shows top-tier breweries often trade at 5–6× SDE, versus 2–3× SDE for struggling peers.


Strategic Recommendations for Brewery Owners and Buyers


The U.S. brewery market is stable but competitive. Whether you’re running a brewery today or evaluating an acquisition, these strategies can improve profitability, strengthen brand value, and boost exit multiples.


1. Focus on Profitability Levers

For brewery owners, increasing earnings is the fastest path to a higher valuation.

  • Prioritize high-margin sales: Taproom pints, flights, growler fills, and merchandise can deliver 60%+ gross margins, far above wholesale. Upsell with branded glassware, beer-to-go, or loyalty memberships.
  • Cut brewing costs: Use bulk hop and malt contracts, optimize recipes to reduce waste, and maintain equipment to avoid costly downtime.
  • Automate selectively: Canning lines, fermentation monitors, and brewery management software can lower labor needs and improve consistency, often reducing operating costs by 20–30%.
  • Watch expense ratios: Manage labor and marketing as a percentage of sales with part-time staffing and targeted digital campaigns.


Even modest improvements—e.g., lifting net margins from 10% to 20%—can significantly increase both cash flow and valuation multiples (SDE or EBITDA).


2. Leverage Technology & Digital Marketing

A strong online presence and data-driven operations signal scalability to buyers.

  • Maintain a modern, mobile-friendly website with beer lineups, taproom hours, and online ordering where legal.
  • Engage customers via Instagram, Facebook, and TikTok with release announcements and behind-the-scenes brewing content.
  • Adopt brewery management software and a POS system that tracks inventory and customer data for automated marketing.
  • Explore new tech like AI-assisted recipe development or demand forecasting for seasonal brews—these tools can both increase efficiency and create publicity opportunities.


Breweries with tech-enabled operations and vibrant social media followings consistently draw more traffic and appear better prepared for growth and acquisition.


3. Build a Loyal Customer Base

High repeat business directly improves both profits and valuations.

  • Launch mug clubs or loyalty programs that reward frequent visits and generate upfront cash.
  • Host events such as trivia nights, beer education classes, or tap takeovers to build community.
  • For distribution-focused breweries, strengthen relationships with bars and retailers through regular visits, co-branded events, and consistent supply.


Evidence of 60–70% sales from repeat customers or long-term accounts signals strong brand equity and predictable cash flow—key factors for higher sale prices.


4. Diversify and/or Specialize Strategically

Balance growth and risk by either diversifying revenue or deepening a profitable niche.

  • Diversify: Add distribution to supplement taproom sales, or introduce adjacent products like hard seltzers, ciders, or non-alcoholic beers to capture new customer segments.
  • Specialize: Become the go-to brewery for a signature style (e.g., barrel-aged stouts or sour beers) to command premium pricing and national recognition.


Both models can appeal to buyers. What matters is clarity of strategy and market demand. Breweries without a defined identity or overly reliant on a single account or product line typically receive lower valuation multiples.


5. Prepare Early for Acquisition

Breweries planning an exit should operate today as if a buyer is watching.

  • Reduce owner dependence: Empower managers and document SOPs for brewing, quality control, and taproom operations.
  • Present clean, audited financials with clear separation of business and personal expenses.
  • Secure long-term leases and key distribution contracts to demonstrate future stability.
  • Identify growth opportunities (e.g., capacity expansion, untapped markets, e-commerce channels) and outline them in a credible growth plan.


Buyers pay a premium for breweries with stable earnings, documented processes, and clear expansion potential.


6. Guidance for Buyers

Use the same checklist in reverse:

  • Target breweries with healthy profit margins, strong repeat sales, and efficient operations.
  • Evaluate segment focus: A brewery with broad distribution and recurring accounts offers stability; a niche craft brewery with a cult following offers high-margin growth potential.
  • Assess brand strength and intellectual property (trademarks, award-winning recipes).


Examine capacity utilization and scalability: underused tanks or strong distributor relationships can signal hidden upside.


Brewery Conclusion


The U.S. beer brewing industry is healthy yet maturing, offering both opportunity and challenge as it settles into stability. Beer remains America’s preferred alcoholic beverage, and demand for flavorful, locally crafted beers and premium imports continues to underpin growth even as total volume stabilizes. Trends such as the craft slowdown, the surge of Mexican imports, and premiumization highlight how the market is evolving beyond sheer expansion. Success now depends on efficiency, quality, and brand strength as much as on production scale. Breweries that embrace technology, strengthen taproom experiences, manage costs, and cultivate loyal customer bases are already seeing higher profit margins and stronger SDE/EBITDA multiples, positioning themselves as standout acquisition targets.


For owners, the takeaway is to run today as if a buyer is watching: build repeat business, document operations, and plan for growth to command premium valuations. For buyers and investors, the opportunity is equally compelling. Well-run breweries are more than production facilities—they are community anchors and lifestyle brands with scalable potential. Businesses that deliver consistent value to customers and future owners alike are thriving and will continue to command strong valuations. With beer’s cultural staying power and consumers’ appetite for quality and variety, now is an ideal time for brewery owners to refine their strategies and for buyers to invest in a sector that has proven it can adapt, endure, and remain profitable for the long term.