The craft beer industry faced declining production and fewer breweries in operation in 2024 as economic challenges impacted the sector, with some brewers forced to close operations and, in other cases, file for bankruptcy.
Americans’ thirst for craft beer declined last year as craft brewers produced 23.1 million barrels of beer in 2024, for a 4% decrease compared to 2023, according to an April 15 report from the Brewers Association.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter💰💵
The craft beer industry’s share of the beer market volume remained flat at 13.3%, the same as in 2023, while the overall beer market declined by 1.2% in volume.
Related: Struggling whiskey company closes operations, no bankruptcy yet
But craft beer had a pretty good sales year as the sector’s retail dollar value rose 3% to $28.9 billion over the previous year, accounting for 24.7% of the total beer market in retail dollar sales.
However, 2024 was the first year since 2005 that the overall number of operating craft breweries declined nationwide to 9,680, down from 9,747 in 2023. New brewery openings declined for the fourth consecutive year, with 434 new breweries opening and 501 closing.
The financial distress in the craft beer industry is carrying over to 2025, as popular Texas-based craft brewer Alamo Beer Company LLC filed for Chapter 11 bankruptcy protection on Feb. 3 to restructure its debt obligations and continue as a going concern.
The debtor was trying to restructure its debt and reorganize its business as San Antonio’s craft beer industry had been troubled with financial distress.
The city’s craft brewers Weathered Souls Brewing Co. and Busted Sandal Brewing Co. in fall 2024 shut down, and Freetail Brewing Co. ended its beer distribution operations.
Squatters Craft Beer and Wasatch Brewery facilities will shut down May 23.
Image source: Shutterstock
Popular craft brewery shuts down permanently
And now, Monster Beverage Corp., the maker of Monster Energy Drink, will permanently shut down its Squatters Craft Beer and Wasatch Brewery facilities in Salt Lake City on May 23, the two brewer affiliates said in an Instagram post.
Related: Another popular whiskey brand files for Chapter 11 bankruptcy
The craft brewers said their parent Monster Brewing will not renew its lease on the Salt Lake City brewery, tap room, and beer store and will shift production of the two beer brands to other breweries in the company’s network of brewing facilities outside of Utah.
More bankruptcies:
Popular restaurant and bar chain files for Chapter 11 bankruptcyPopular athletic shoe chain files for Chapter 11 bankruptcyAward-winning cosmetics brand files for Chapter 11 bankruptcy
“Both will continue to be distributed through our existing network without interruption of supply or availability,” Monster Brewing President Ray LaRue said in a statement, The Salt Lake City Tribune reported.
Squatters and Wasatch will begin brewing in new facilities on May 27, LaRue said in the statement. The company did not specify where the beers will be brewed, but they will continued to be sold in Utah.
Brewery will lay off employees
The closing of the Squatters and Wasatch brewery will result in the loss of 25 jobs, the statement said. Employees will be offered a separation package and are encouraged to apply for other positions within the company.
Salt Lake City’s Squatters Pub Brewery, Wasatch Brew Pub, and other affiliated restaurants will not be affected by the closing since those establishments are owned by a separate entity.
Monster acquired Squatters and Wasatch in January 2022 in its $330 million purchase of CANarchy Craft Brewery Collective, which also includes craft beer brands Cigar City, Oskar Blues, Deep Ellum, and Perrin Brewing, according to a statement at the time.
Related: Popular whiskey brand files for Chapter 11 bankruptcy
