Craft breweries had a rough year in 2023, which has carried over into 2024. Several craft beer companies filed for Chapter 11 protection last year, forcing some to close down permanently, and the trend has continued this year.
San Francisco’s Anchor Brewing was one of the best known and highly regarded independent craft breweries since its founding in 1896, but things fell apart after Japan-based brewer Sapporo Holdings Limited purchased the company in August 2017. The company struggle with production and national distribution and ceased national sales in June 2023 a month before filing Chapter 11 in July 2023 and shutting down operations.
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Anchor Steam might still rise from the grave as bidding for the defunct company’s real estate, equipment and intellectual property is underway and winning bidders are expected to be chosen at the end of January, the San Francisco Chronicle reported.
Small struggling beer brands file for bankruptcy
Smaller beer brands that were also suffering filed Chapter 11 bankruptcy at the end of the year to try to survive. Flying Fish Brewing Co., a Pennsylvania brewery that operates in South New Jersey, filed for Chapter 11 bankruptcy protection in late December after a sale to Cape May Brewing Co. fell through.
Small Colorado brewery Guanella Pass Brewing on Dec. 30 filed for Chapter 11 protection to reorganize its debt, and in 2024, Zydeco Brew Werks of Tampa, Fla., on Jan. 11 filed for Chapter 11 with plans to close its main brewery and restaurant location on 7th Avenue in the Ybor City area of Tampa on Jan. 21.
Cherry Hill, N.J.-based craft brewery Forgotten Boardwalk Brewing filed for Chapter 11 protection on Jan. 12 with plans to close down after the company’s owner was not allowed to renegotiate its lease with the brewer’s landlord. The brewery will maintain regular business hours and serve its tasting-room visitors through its final day of operation on Feb. 29.
The latest brewer closing involves Hackensack, N.J.-based craft brewery The Alementary Brewing Co., which has decided to shut down its operations permanently after a sale of its contract business fell through.
The brewing company said in a Jan. 29 Facebook post that its taproom will remain open as it manages its way through the process but did not indicate when the brewer’s final day of operation will be. The company also did not say whether it will file for Chapter 11 or Chapter 7 bankruptcy liquidation.
Alementary blamed the continued softness of the distribution market, “a not great” 2023 fourth quarter, and downward regional industry trends as additional reasons for deciding to close down.
Craft brewery has ‘Pay The Lawyers’ special
“Our biggest error was one of timing, and trusting,” the company said in the Facebook message.
The taproom will remain open daily under its usual hours as the company works through its wind-down. To celebrate its eight years of operation, Alementary is having a “Pay The Lawyers” special, offering $5 pints, $3 shorts, $25 lager and Random cases, $10 for all bottles, and $35 “everything else,” the Facebook post said.
“No business lasts forever, and you just gotta be okay with that,” Alementary wrote to conclude its message. “We’re sad, but it’s not a weepy sad. Continue supporting your local breweries, and not just the hypey ones everyone thinks you have to like. Find unique spaces doing unique things and support them. As for us? We’ll see you on the flipside.”
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