CUSTOMERS at Whole Foods and other top retailers may soon see some popular beers disappear from shelves.
The potential loss of some favorites comes as a beloved brewery went bankrupt this month.
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North Carolina-based microbrewery, Brüeprint Brewing Company, which has crafted at least 18 different beers, filed for Chapter 7 bankruptcy protection on April 9.
Chapter 7 bankruptcy is different than Chapter 11.
While Chapter 11 often allows a company to operate as normal throughout the process under court supervision, Chapter 7 means that it must close its doors completely and have its assets sold to pay creditors the debt it owes, per Investopedia.
In its filing, Brüeprint Brewing Company listed about $1.78 million in liabilities and between $100,000 to $1 million in assets.
Read More on Bankruptcies
Brüeprint is currently listed as “permanently closed” on Google.
It was founded in April 2014 and brewed favorites like Pale Brüe Eyes, Brüenette, Brüe Scarlet Amber Ale, Edinbrüe Scotch Ale, and Midnight Brüe.
Several North Carolina restaurants worked with the company to have the beers on tap.
Retailers like Whole Foods, Food Lion, Fresh Market, Total Wine & More, Wegmans, Harris Teeter, Lowe’s Food, and Weaver Street Markets also sold it.
Recent updates on the Brüeprint Brewing Company website showed that it closed a taproom and moved in the fall of last year.
A new site location was never revealed, but advertisements stated that it would serve $5 pints and offer discounts on merchandise.
YEARS GONE BY
Microbreweries in general have faced struggles for years now, per the Daily Mail.
Thousands of distilleries broke ground nationwide in the 2010s and 2020s, and while the growth was initially positive, the market has seemingly become oversaturated.
This has led other companies down a similar path to closures or bankruptcies.
For example, Texas-based Alamo Beer Company filed for Chapter 11 bankruptcy in February, per ABC affiliate KSAT.
How does bankruptcy work?
Bankruptcy is a specific legal process that helps companies eliminate debt they can’t repay.
The process allows businesses to start fresh and gain access to new credit.
Supervised by federal courts, bankruptcies allow a company to sell off its assets more easily to pay off creditors, according to Investopedia.
Chapter 11, a common process for companies, is used to restructure a business with the goal of remaining open – even if it means selling off most of the company’s properties.
Chapter 7, on the other hand, sells all of a company’s assets, putting it out of business.
Chapter 15, alternatively, allows for collaboration between American and foreign courts to conduct bankruptcy proceedings with “parties of interest involving more than one country,” per the United States Courts.
It cited in its filing that it was operating only at 20% capacity due to a lack of demand.
Molson Coors, one of the biggest beer producers in the United States, also closed a popular brewery in 2024.
DRINKS DOWN
With inflation and an uncertain economic landscape, alcohol consumption has gone down.
Not to mention, younger adults are drinking alcohol less than they used to, according to a 2023 survey from Gallup.
Those under age 35 who say they drink dropped from 72% to 62% in 20 years, from 2001-2003 to 2021-2023.
Another report from World Finance also found that Gen Z drinks, on average, about 20% less than Millennials.
Breweries aren’t the only companies experiencing financial woes recently, either, as several mall-based retailers have filed for bankruptcy.
Forever 21 submitted its second Chapter 11 filing in its history at the end of March and is set to close all its remaining stores.
Similarly, Express filed in April 2024 and shuttered around 100 stores in malls.