Wall Street Lunch: Craft Beers, Spirit Enter 2026 In Choppy Waters (undefined:TLRY)

Craft Beer Industry Outlook - The craft beer industry is experiencing a shakeout phase that began in 2023, with brewery closures outpacing openings for the third consecutive year, including notable closures like Rogue Ales & Spirits and Iron Hill Brewery in 2025 [5] - Analysts highlight pressures such as higher commodity and labor costs, slowing taproom traffic, increased competition from other alcohol formats, and regulatory challenges, leading to a decline in beer consumption frequency among drinkers [6] - The Brewers Association's economist describes the industry as being in turbulent waters, with changing consumer habits and inflation impacting performance, but notes that brewers are adapting their offerings and business models [7] Future Projections - The outlook for 2026 indicates another small volume decline, continued closures, and consolidation, but a gradual stabilization as weaker players exit and stronger, taproom-centric breweries adjust to new consumer tastes [7] - There are cautious reasons for optimism, including falling interest rates, potential legal clarity on tariffs, and consumer surveys indicating a desire to socialize more, which could positively impact sales [8] Company Developments - Tilray has emerged as a significant player in the craft beer sector after acquiring multiple brands from Anheuser-Busch InBev and Molson Coors, while Boston Beer remains a key name despite diversifying its portfolio [9] - Nike's CEO recently purchased over $1 million in shares, making it the biggest gainer in the S&P [9] Economic Indicators - Weekly initial jobless claims fell by 16,000 to 199,000, below the consensus of 219,000, with continuing claims also declining to 1.866 million [11]