Minnesota’s craft beer scene is collapsing. In 2025 alone, eight breweries shut down, including Schram Haus Brewery in Chaska. This closure did not happen by accident—it reflects a much larger crisis gripping the entire state. Rising costs, stricter regulations, and shifting consumer tastes have made it nearly impossible for small breweries to thrive.
Over the past two decades, Minnesota’s craft beer industry has exploded with growth. In 2012, Minnesota had only 39 breweries. By May 2025, that number rocketed to 260. For years, new breweries opened faster than old ones closed. But 2024 marked a turning point—for the first time in 20 years, more breweries closed than opened.
The trend accelerated in 2025. Well-known names like Foremost, Chanhassen, and Dangerous Man all shut their doors. Rising costs destroyed profitability. Ingredient prices jumped between 20 and 50 percent since 2018. Labor costs, rent, and utility bills continued to rise relentlessly. Small breweries survive on razor-thin margins of just 3 to 8 percent, so they cannot absorb these increases.
Meanwhile, younger customers switched to hard seltzers, cannabis beverages, and cheaper mainstream beers. This shift left small breweries fighting for survival in an increasingly hostile market.
How Schram Haus Tried and Failed
Chaska, a town of roughly 27,000 people, once thrived as a brewing hub. In the 1880s, nine breweries operated in the area, drawing strength from German immigrants and excellent water sources. The prohibition in 1920 eliminated all of them.
For over a century afterward, Chaska had no breweries. In 2019, Aaron and Ashley Schram decided to revive that heritage. They opened Schram Haus Brewery and focused on German ales. They organized seasonal events, such as GoatFest and Oktoberfest, and built a taproom that quickly became a community gathering place.
Everything seemed perfect. The brewery was situated on a beautiful 3-acre hilltop with excellent views and ample parking. Hidden costs destroyed this dream. Property taxes ran high. Rent and maintenance drained the budget. Government regulations further strangled the business.
Event permits restricted Oktoberfest attendance from 1,200 people down to just 300. Licensing rules prevented the Schrams from selling wine at the taproom, even though they operated a sister winery in Waconia. These combined pressures made the operation unsustainable.
In late November 2025, the Schramms announced that they would close by December 31, marking the end of nearly seven years of operation. This closure wiped out Chaska’s only remaining brewery and cost jobs for beertenders, brewers, kitchen staff, and event coordinators—typically 8 to 15 people.
The timing hit especially hard, coming just before the holidays. Beyond jobs, the closure marked the end of a cultural mission. The Schrams used regional grains, shared stories about heritage, and celebrated Chaska’s agricultural roots. The Grain Collaborative, a regional farm group, recognized them as a “heritage brewing” model. That educational and cultural work now vanishes from the town.
The Industry Faces an Uncertain Future
The Schramm’s sister winery in Waconia recently expanded into a new building and will now produce Schram Haus beer on a smaller scale. This move keeps the brand technically alive, but it amounts to a retreat from its original goals.
Without their own taproom, the Schramms lose high-margin direct sales and must depend on retail partners. Industry experts doubt this scaled-down model will survive. Many breweries that tried similar consolidations struggled to rebuild their customer base. Some analysts predict Schram Haus beer could disappear within 12 to 24 months.
Minnesota faces even more closures ahead. Previn Solberg, owner of Invictus Brewing in nearby Blaine (also closing in December), noted that costs now run 20 to 50 percent higher than when he opened. With flat or declining craft beer sales, these increases push small operations toward bankruptcy. The industry will eventually stabilize at a smaller size, but only after many local, community-focused breweries vanish.
Chaska returns to a brewery-less state, just as it remained for over a century after Prohibition ended. The real question is whether anyone will preserve brewing heritage. If a well-resourced couple with a sister winery could not make it work, smaller startups with fewer resources face nearly impossible odds.
Sources
Star Tribune, December 1, 2025
Grain Collaborative, June 19, 2024
Scott County History, August 10, 2020
CBS Minnesota, November 20, 2025
Mashed, October 2, 2025
Y105fm, December 1, 2025