The craft beer industry has struggled over the last two years with a decrease in production and a decline in the number of breweries in operation, according to the Brewers Association.
While results from the Brewers Association’s 2023 survey showed a slight 1% decrease in craft beer production, the decline continued as the association’s 2024 midyear report showed a further 2% drop in production.
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The number of small and independent craft breweries in the U.S., which is 9,736, also declined from 2023 to 2024, as the association tallied 335 new brewery openings, but also 399 closings for a net decline of 69 breweries.
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The most significant craft brewery bankruptcy in 2023 was the grandaddy of all craft brewers, San Francisco’s Anchor Brewing, which was founded in 1869.Â
The craft brewer, which was purchased by Japan-based brewer Sapporo Holdings in August 2017 for $85 million, had production issues, and a January 2021 rebranding of the company from its classic red banner and blue anchor logo to a new yellow and blue one failed.
Anchor Brewing filed for Chapter 11 bankruptcy in July 2023 and shut down operations. The company was expected to restart operations after Hamdi Ulukaya, the billionaire founder and CEO of Chobani yogurt, purchased the brewer’s assets in May 2024, but the brewery has not revealed when it will return.
The most prominent craft brewery bankruptcy in 2024 was Yard House and BJ’s competitor World of Beer, whose parent WOB Holdings and 11 affiliates filed their petition in the U.S. Bankruptcy Court for the Middle District of Florida on Aug. 2.
The company blamed the negative impact of rising interest rates and lease obligations on cash flows along with inflation, increased operating costs, and a slow return to pre-pandemic dining habits for its distress, the Tampa Bay Business Journal reported.
Alamo Beer filed for Chapter 11 bankruptcy to restructure its debt obligations.
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Alamo Beer files for bankruptcy to reorganize its business
Finally, popular Texas-based craft brewer Alamo Beer Company LLC has filed for Chapter 11 bankruptcy protection to restructure its debt obligations and continue as a going concern.
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Alamo Beer filed its petition on Feb. 3 in the U.S. Bankruptcy Court for the Western District of Texas, listing $1 million to $10 million in assets and liabilities.
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The debtor is trying to restructure its debt and reorganize its business at a time when the San Antonio craft beer industry has been struggling with financial distress.
Last fall, the city’s craft brewers Weathered Souls Brewing Co. and Busted Sandal Brewing Co. shut down, and Freetail Brewing Co. ended its beer distribution operations.
Alamo Beer faced rising costs and declining sales
Alamo began having financial distress last year with rising operational costs and declining sales, San Antonio Express-News reported. The company’s brewery also isn’t reaching its potential as it has the capacity to produce 40,000 barrels annually, but only produced 7,600 barrels.
The San Antonio-based brewer, which was founded in the mid-1990s, currently brews amber lager, golden ale, and India pale ale from its brewery that opened in 2014.
The brewer, which is the only beer company to operate with the Alamo name since prohibition began in 1919, also operates a beer hall in San Antonio and distributes its products throughout Texas, according to its website.
The company brews another brand that it purchased, ShotGun, which offers Texas Bock, Texas Pilsner, Texas Blonde, Texas Juicy IPA, and Ranch Water spiked seltzer.
Alamo in 2013 also merged with craft beer company, Viva Beer to produce its Mexican-style brews, such as Ale Nino Hazy IPA, Spurveza Light Lager, Ski San Antonio Vanilla Porter, Amarillo Blonde Ale, Americana Lager, and Battle of Hops IPA.Â
Alamo’s founder Eugene Simor secured the brand’s trademark in 1995 after learning the pre-Prohibition Alamo brand trademark had expired and no one had claimed the rights to it. The first batch of his Alamo brand was brewed in 1997 through another now-defunct San Antonio brewery, Frio Brewing Company.
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