Recent closures at local breweries and a decline in wine grape sales on the Central Coast are raising the question: are Americans drinking less? New national and statewide data suggest consumption habits are changing.
According to a recent poll from Gallup, just 54% of U.S. adults said they drank alcohol in 2024, down from 62% the previous year. Meanwhile, industry data shows sales of U.S.-made spirits dropped more than 2% in 2025, signaling a broader slowdown beyond beer and wine.
“It’s been a really tough year,” said George Peterson of Central Coast Brewing. “We've lost a bunch [of breweries]… We've lost three in town, one recently just now in Lompoc, two in Paso. A couple have opened, but no more closing than opening.”
Peterson, who has owned Central Coast Brewing since 1998, says shifting consumer preferences are a major factor.
“Business is pivot pivot, pivot,” he said.
He explained that customers today are looking for more variety when they go out.
“People were much more apt to have a beer. Now, if you go out with a group of eight people, three of them are going to be off of one tangent. When you come to a bar that only serves beer, wine that limits your customer base.”
A report from IWSR shows spirits consumption in California has fallen about 5% since 2019, outpacing national declines. At the same time, Peterson says more customers are asking for gluten-free options, non-alcoholic drinks, and cocktails, prompting his business to expand offerings now that it is merging with Krobar Distillery at The Hub.
“So you know, now if you come in again with 8 or 9 or 10 people, this location at least has the ability to solve most people's needs, hopefully at a reasonable price point,” Peterson said.
While some categories are declining, others are growing. Ready-to-drink cocktails, often referred to as RTDs, have seen double-digit growth in the past year, according to The Spirits Business.
Local businesses like SLO Brew and Rod & Hammer Distillery have leaned into that trend.
“In this business, we’re always evolving,” said owner Rod Cegelski. “We have gone from a full-scale brew pub… and we had to evolve early into creating a beer cocktail called Cali Squeeze.”
SLO Brew first opened in 1988, with Rod & Hammer’s distillery launching in 2019, both evolving alongside shifting consumer habits.
“There’s different behaviors. The drinking consumer right now wants choices,” Cegelski said. “Habits have changed, but I don't think the overall consumption has changed, so it's just more choices.”
Both business owners emphasized the importance of staying flexible in a changing market.
“Innovate or die. You have to continue to innovate. You can't be a vacant owner,” Cegelski said.
Peterson echoed that advice.
“Believe in your vision. Be able to take the risk but also willing to risk the failure,” he said.
They both added that supporting local businesses remains key to keeping Central Coast breweries, wineries, and distilleries afloat.
