The craft beer industry has been in trouble. Struggling sales forced yet another fan-favorite brand to file for bankruptcy.
Alamo Beer Company, a San Antonio-based brewer, has filed for Chapter 11 bankruptcy, in the latest sign of struggles for alcohol sellers.
Alamo produces 7,500 barrels of beer annually out of its 14,000 square foot facility. Alamo is popular for its golden ale, lager and hazy IPA.
The company has the potential to increase its production significantly. Eugene Simor, the founder and owner of the brewery, revealed that they have the capability to brew 40,000 barrels of beer annually.
It is operating under 20 percent capacity.
‘The plan is to recapitalize, restructure and return stronger,’ Simor told Texas-based ABC affiliate KSAT.
Alamo, which has been brewing since 2003, has grown in recent years through acquisitions.
In 2023, the company purchased Austin-based ShotGun Seltzer and merged with local brand Viva Beer, according to the San Antonio Express News.
Beer companies across the US have hit sales snags as customers cut back
According to court documents, the company’s reported assets and liabilities range between $1 million and $10 million. Typically, a Chapter 11 filing is made by companies looking to reorganize or divest the brand.
However, Simor acknowledged that growth in the craft beer sector has slowed.
To stay afloat, Alamo has already sold parts of its real estate portfolio.
‘The real estate value has escalated much faster than the distribution side of business,’ he said.
The company is also looking to sell a parking lot adjacent to its flagship store.
The San Antonio alcohol industry has faced challenges in recent times. Weathered Souls, Busted Sandal, and Second Pitch all closed their establishments in the city during 2023.
But the challenges facing the Texas-based companies are part of a larger trend in the alcohol industry.
Companies are competing with increasing product costs while customers cut back on their discretionary spending.
Alamo Beer Company filed for bankruptcy
The brand said it is hoping to ‘return stronger’
Alcohol and beer companies across the U.S. are facing cost headwinds
The headwinds have forced a handful of other alcohol and beer giants to file for bankruptcy, shutter locations, or cease operations.
Vintage Wine Estates also filed for Chapter 11 bankruptcy in mid 2024.
The company, previously the 15th biggest producer in the U.S., sold off parts of its real estate portfolio to remain in business.
Meier’s Winery, one of the oldest wineries in the U.S. with 30 different products, also filed for bankruptcy before ultimately closing.
Even Molson Coors shuttered a brewery after facing financial headwinds.
The national producer shuttered Leinenkugel’s brewery in Chippewa Falls, Wisconsin, after over 150 years in business.
Jake and Dick Leinenkugel, the sixth-generation of the brewery founder’s family, said they tried to purchase the hall back from Molson Coors. But they allege the company never responded to their requests.
‘This brewery holds a deep legacy for the Chippewa Valley,’ Dick said.
