Craft breweries in the Balearic Islands are on the brink: “Every day is a struggle to avoid closing.”

PalmThe craft beer sector in the Balearic Islands is going through one of its most delicate periods after years of hard work and the boom of a decade ago that boosted sales and the industry. Far from the image of expansion that characterized the years before the pandemic, small producers and brewers report a continuous decline in consumption and are struggling against increasingly burdensome and restrictive regulations. They denounce that this crisis has led to the disappearance of many historic brands and is constantly suffocating those that remain. "We haven't recovered from what we had before COVID, not by a long shot," warns Miquel Amorós, founder and owner of Mallorca Beer Co., a company that currently produces in an emblematic location that was once another industrial site: Menestralia, in Campanet. However, the brewer maintains that currently, "every day is a fight to avoid closing down."

The first major blow to the sector came with the pandemic, but the effects are still very much present. "In Spain, beer consumption has fallen significantly, and that affects us all," explains Amorós. This general decline is compounded by a change in habits that particularly penalizes small breweries: "People now buy more beer in supermarkets than in bars and restaurants, and we basically depend on the restaurant channel."

From twenty to ten

Today, only about ten craft breweries remain active in the Balearic Islands. In Mallorca, these include Sullerica (Sóller), Mallorca Beer Co (Campanet), Sa Cerviseria (Cala Rajada), Brusca (Manacor), Breaking Caldo (Palma), Balear 1983 (Binissalem), Forastera (Alaró), Island Brew (Portocolom), and La Velo (Palma) in San Clemente.

The list of brands that have disappeared in recent years is long and illustrates the magnitude of the crisis: Isla, Tramuntana, Cas Cerveser, Sa Bona Birra, Des Pla, Mayurqa, Ibosim, Talaiótika, Banyarriquer, Mundo, Nau, Lagartija, Adalt, Lowther, Borrego. Many of these are historic brands that marked the beginning and creation of this sector and were benchmarks for the vast majority of new brands and companies that have appeared in recent years.

"It seems they want us to close."

One of the main complaints in the sector is its relationship with the administration. Amorós denounces a feeling of constant bureaucratic harassment: "It's all problems and obstacles that small and medium-sized businesses can't handle or that cost us dearly." In this regard, he asserts that this isn't a problem unique to craft beer producers, but rather a shared conflict with all islanders who are part of the primary sector. He also criticizes the regulatory instability: "They change the regulations every other day, and what for them is a small change, for us represents a huge financial burden and many hours of work." The lack of institutional support is another heavy weight. "We have no one to help us or to inform us of the changes. We have to find them ourselves in the Official State Gazette (BOE), and if we can't find them, they impose sanctions. They fine us for everything," he laments.

This situation has become evident with the issue of recognition as an artisan product. Although the law now recognizes them as such, Amorós explains that they have even been fined for defining themselves as artisan products without prior administrative authorization: "Even though we are a 100% artisan product, we have been fined for advertising that we were."

A local product... that isn't local

Another open front is the lack of recognition as a local product. "Right now we're in limbo: for the government, we're as local as Estrella Damm," Amorós complains. The sector is trying to move towards using malt made with barley from the Canary Islands, but the lack of its own industry makes this extremely difficult. "We need to be considered a local product," he asserts.

In this regard, he asserts that the regulations fail to consider the specific circumstances of each sector and that, in his case, despite carrying out all production locally and using almost all local products, they cannot be considered a local product because the malt is imported. "If there is no market, no industry, and no malt production in the Balearic Islands, we can no longer be considered a local product. It's a shame and yet another obstacle that is sinking the sector," concludes the founder and owner of Mallorca Beer Co.

The result, according to the brewer, is a perverse paradox: "The local product is being left to die, and in the end, everything ends up being imported. Every day is a struggle to stay alive; it's like a marathon where it seems like we're running but never reaching the finish line."

Simmering beer

Despite the adverse context, small brewers defend the unique value of their beer. "Our product is good, local, and artisanal, in that order. However local and artisanal it may be, if the product isn't good, it's not worth it. The truth is that the product, once on the market, is very well received," says Amorós. In this sense, the founder of Mallorca Beer Co contrasts his work with the industrial approach: "We make slow-brewed beers, like traditional island cuisine which is disappearing. A product made with care, respecting the timing, paying attention to every step, and prioritizing quality over quantity. Big brands do rather better fast food"They are looking to increase production in order to have the largest possible quantity of products," Amorós states.

Thus, the production of craft beer is slower, more meticulous, and less concerned with the cost of ingredients. Furthermore, it's a product exclusive to the Balearic Islands: "Our beers can only be enjoyed here."

Dependence on the bar... and the type of tourist

The bar owner remains the biggest ally – and also the biggest filter. "Our client is the bar owner. If they stock one of our beers, it always sells, both to locals and tourists," Amorós assures. Interestingly, these aren't the peak tourist months. Sales rise in May, June, September, and October, but fall in July and August. The reason is clear: "It's because of the type of tourism we get. The 'party tourist' is only looking for the party and what's included in their wristband. They ignore local and artisanal products because they're more expensive."

Between regulations, changing habits, and a tourism model that doesn't always work in its favor, Balearic craft beer endures. It does so little by little, with patience and an almost heroic determination. "We keep going because we believe in the product," Amorós summarizes. But he also admits that they face each year with the feeling that it's a new marathon to avoid disappearing, and they aren't entirely sure that it won't happen.