2020 brought unprecedented challenges to businesses and industries across Hawaii. Our local breweries were not untouched by the pandemic and its economic impacts, yet the industry has remained strong and is poised to make a solid rebound in 2021.

This is true even though Hawaii remains one of the smallest craft beer-producing states in the country, according to the Brewers Association’s recently released annual report.

The association, a national trade group representing craft breweries, ranked Hawaii as 42nd in the nation in annual production volume, at 63,159 barrels in 2020 from a total of 26 breweries. The bulk of that output came from Maui Brewing Co., with roughly 43,000 barrels.

New Hampshire and Maine, states with similar populations as Hawaii, produced 108,000 and 312,410 barrels of beer respectively, and have far more breweries (93 and 136). California, the nation’s top-producing craft beer state, put out a whopping 3.35 million barrels from its 958 breweries.

Broken down by population, the 26 breweries in Hawaii equate to about 2.5 breweries per 100,000 residents age 21 and older, a proportion that seems high, but only accounts for permanent residents. It does not take into account the tourists who heavily frequent brewery taprooms and restaurants, and purchase locally made beer.

What the numbers do show is that our local brewing industry has strong growth potential and lots of room for expansion.

THE PANDEMIC had a dramatic effect on the local industry. Many breweries also operate restaurants and taprooms. which had to close multiple times and lay off hundreds of workers. The sudden loss of travelers also put a huge dent in revenues and beer production. But with travel reopening, the vaccination rate rising and COVID-19 case counts dropping, breweries are slowly seeing production grow again. Along with that comes jobs.

“We’re currently hiring a ton of positions and just wish people would want to come to work,” Maui Brewing Co. founder Garrett Marrero recently commented.

Cindy Goldstein, executive director of the Hawaii Craft Brewers Guild, added, “As businesses return to fuller taproom and brewpub capacity, they are already ramping up employee numbers and many have openings right now for managers and other staff.”

The number of craft breweries in Hawaii actually grew during the pandemic, with the opening of Broken Boundary Brewery in Kalihi and — astonishingly — there were zero permanent closures. Two breweries are slated to open this year, Lokahi Brewing Co. in Honolulu and Mahalo Aleworks in Makawao, Maui.

The local brewing industry is important to diversifying an economy that is primarily dependent on tourism. It brought $313 million to the local economy in 2019, a figure that had been steadily growing over the years. Yet, manufacturing in the state, a category that includes breweries, only represents about 2% of the total economy and faces many challenges.

GOLDSTEIN SAID the Hawaiian Craft Brewers Guild supported a bill this legislative session that would have allowed direct-to-consumer shipping to other states, a practice already allowed for wine sales. Although it was supported in the Senate, the bill was blocked by House committees that oversee economic development and commerce, she said. “Hawaii policy makers talk about diversifying the economy away from reliance on tourism, yet given an opportunity to directly support the growth of manufacturing businesses, the House halted actions that could help diversify and grow the local economy.”

Marrero echoes this frustration when listing hurdles to growth in the industry: “archaic legislation, multi-jurisdictional liquor rules, poor interpretation (of laws), lack of support for authentic local manufacturing.”

Even with all the challenges, the craft brewing industry is headed for a recovery. The overall numbers could get a large boost once they incorporate Kona Brewing Co.’s local output. Because Kona Brewing was previously bottled and canned on the mainland, the Brewers Association did not count its production within Hawaii’s numbers. With a new production facility on the Big Island brewing and canning all the beer to be sold locally, Kona Brewing can now join the fold.

Tim Golden, a certified cicerone, shares his obsession with all things craft beer on the third week of each month. He is part owner of Village Bottle Shop in Kakaako.