Alloy Brewing Co. Shutting Taproom, Citing Economic Pressures And Craft Beer Slowdown

Alloy Brewing Co. Shutting Taproom, Citing Economic Pressures And Craft Beer Slowdown

COON RAPIDS, MN – July 2, 2025 — After eight years of brewing community favorites in a converted mechanic’s garage, Alloy Brewing Company—the only brewery in Coon Rapids—has announced it will close in mid‑July. The brewery plans a farewell celebration on July 12, giving patrons one last chance to enjoy their signature pours before the doors officially shut.

Financial Headwinds and Changing Tastes

Owners point to a perfect storm of rising costs—including rent, raw materials, and supply‑chain disruptions—and a persistent dip in craft beer sales. A June post on the brewery’s Facebook page noted these pressures have steadily mounted over the past three years.

The loss of its Coon Rapids location also played a role, as the lease nears expiration at the end of July. Despite efforts to adapt and cut expenses—including scaling back growler fills, gift-card sales, and loyalty perks—the business concluded continuing was no longer viable.

Reflecting a National Trend

Alloy’s closure mirrors broader challenges across the U.S. craft brewing sector:

• Nationwide craft beer production fell 4% in 2024, the steepest annual decline outside the COVID pandemic era, with 434 new breweries opening but 501 closing
• Major breweries in several states posted double-digit sales declines—e.g., six of the top 10 in Oregon, Massachusetts, and Colorado—underscoring how widespread the pullback has become.
• A surge in alternative beverages—like hard seltzers and non-alcoholic beers—and reduced alcohol consumption among younger demographics have further strained the market.

Community Roots and Legacy

Alloy launched in 2017, converting a former mechanic’s shop into a brewery featuring eight roll-up doors that created an open, community-driven atmosphere. Over the years, it became a staple hangout and event venue in northern Hennepin County.

In their announcement, owners thanked staff, suppliers, and patrons, recalling how “the friendships and memories…will always remain the most meaningful part of our journey.” The brewery has temporarily paused gift card sales and loyalty redemptions while planning a final few weeks of service.

The Road Ahead

Alloy’s final chapter illuminates the broader landscape for independent breweries: as market saturation intensifies and consumer habits evolve, survival increasingly demands cost agility, diversified offerings, and strong community ties. Though some high-profile brewers are pivoting—adding food, hospitality, or non-alcoholic lines—too many small outfits are finding the margins too thin.

What’s Next for Alloy

• Farewell celebration: July 12 (details pending from the brewery’s social media and website)
• Final taproom day: mid‑July—exact date to be announced
• Operational changes: no more gift cards or loyalty point usage; limited growler fills

Community members are invited to stop in one last time to support local craftspeople and say goodbye.

Broader Industry Context

U.S. craft beer production: down 4% in 2024—the largest yearly drop in four years

Number of U.S. craft breweries: 9,612 at end of 2024, down from 9,730 in 2023
High-impact regions: Major breweries across Oregon, Massachusetts, Colorado/PA reporting steep declines
Shifting consumer habits: Younger drinkers are favoring seltzers, cocktails, and non-alcoholic options; tariff increases have impacted production costs

Alloy Brewing’s closure marks a significant moment in the evolving craft beer landscape—once a symbol of local pride, the brewery now serves as a sobering example of the pressures facing community-focused beverage makers.

MinneapoliMedia