Craft breweries struggle as sales and appetites wane

"And the big beer companies, which built or acquired smaller craft breweries during the industry's heyday, are now jettisoning some of those brands. Last year, Molson Coors sold four of its craft beer companies to a cannabis company, Tilray Brands. Brewers and others in the industry say they're in the midst of a broader shakeout that will probably push more smaller breweries over the edge."

"An early mover in craft brewing, the bar and restaurant flourished in San Francisco's South Park neighborhood, near the financial district and the Giants' Oracle Park, serving its own specialties like Hell or High Watermelon beer. But after 25 years, 21st Amendment, named after the constitutional amendment that made alcohol legal after Prohibition, will say "last call" for the final time later this month as it shuts its doors."

"What's happened to 21st Amendment isn't unique, as craft breweries across the country shutter or file for bankruptcy at a rapid rate. Sales of craft beer fell 4% last year, according to the Brewers Association, the lobbying arm for small and independent brewers. There have been more brewery closings than openings over the past 18 months, the first time that has happened in 20 years."

21st Amendment Brewery in San Francisco is closing after 25 years as patrons and revenue declined. Craft beer sales fell 4% last year and more breweries have closed than opened in the past 18 months, a first in two decades. Large beer companies are divesting craft brands, exemplified by Molson Coors selling four craft units to Tilray. Contributing factors include overexpansion, high debt and rising interest rates, expensive commercial leases, higher labor costs and increased raw-material prices. Many independent brewers face a prolonged shakeout that will likely push additional small breweries into closure or bankruptcy.

Read at Boston.com