Another distressed vodka brand files for Chapter 11 bankruptcy | TheStreet.com
The Craft Brew Crisis: A Frothy Struggle for Survival
Once bubbling with growth and innovation, the craft beer industry has faced a sobering reality since the pandemic struck in 2020. The ripple effects of shuttered restaurants and retail spaces have left breweries grappling with significant financial challenges. In 2022, the U.S. beer market shrank by 5.1% in volume—a stark indicator of economic strain, as revealed in the Brewers Association’s 2023 annual report.
Yet, even amid the gloom, there are signs of resilience. In 2023, the number of operating breweries in the U.S. increased to 9,906, with 495 new openings. However, these gains were dampened by 418 closures, underscoring the volatility of the craft beer sector. Among the fallen was San Francisco’s legendary Anchor Brewing, crafting beer since 1896. Anchor Brewing’s Chapter 11 bankruptcy filing last year seemed to mark the end of an era. Still, a twist of fate brought billionaire Hamdi Ulukaya, the mind behind Chobani yogurt, to its rescue. Anchor Brewing’s legacy might find new life with plans to reopen the brewery.
The struggle isn’t confined to beer. The spirits industry has been shaken as well. Colorado-based Lee Spirits Co., a purveyor of fine gin, vodka, and liqueurs, filed for Chapter 11 in March 2024, citing pandemic-related revenue declines and a shifting market. Montana Distillery followed suit in April, pointing to rising costs and mounting property taxes as culprits in its financial distress.
Even big-name players in the spirits world have stumbled. Never Forget Brands, makers of GameDay Vodka, filed for bankruptcy in July 2024, facing hefty debts to NFL teams like the Buffalo Bills and New England Patriots affiliates. The industry’s challenges highlight the fragile balance between rising costs, shifting consumer habits, and the long shadow of economic disruptions……..
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Rising Dough
What does the rise and fall of businesses like Anchor Brewing or Never Forget Brands reveal about the evolving relationships between consumer demand, market resilience, and the economic pressures on small enterprises versus corporate giants?
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