The craft alcoholic beverage industry has faced economic challenges over the last year, with several establishments restructuring out of court, filing for bankruptcy, and, in some cases, shutting down their businesses.
Industry production and sales results may have had a significant impact on some of the distress.
Brewery production and sales decline
U.S. beer production declined by 1% in 2024, while craft brewer volume sales decreased by 4%.
The downturn reduced small and independent brewers’ share of the U.S. beer market by volume to 13.3%, according to data from the National Brewers Association.
Related: Popular beer brand and brewery files for Chapter 11 bankruptcy
The craft brewery sector slid to 9,269 breweries operating in June 2025, down 1%, compared to 9,352 in June 2024, the Brewers Association said in its 2025 Midyear Market Report released on July 23.
Craft breweries operating decreased:
- June 2025: 9,269.
- June 2024: 9,352.
Craft beer volume also declined by 5% in the first half of 2025 compared to the same period in the previous year, according to the Brewers Association.
The overall number of operating craft breweries had declined nationwide to 9,680 in 2024, down from 9,747 in 2023. It was also the fourth consecutive year that the number of new brewery openings declined, with 434 new breweries opening and 501 closing in 2024, according to the Brewers Association.
American craft brewers produced 23.1 million barrels of beer in 2024 for a 4% decrease compared to 2023, according to a report from the Brewers Association.
Spirits supplier sales declined in 2024
The spirits industry faced economic issues in the last year. Spirits supplier sales in the U.S. declined 1.1% in 2024 to $37.2 billion, the Distilled Spirits Council of the United States reported in its Annual Economic Briefing in February 2025.
Hard cider sales also declined by 1.8% in 2024 compared to the previous year, Beverage Industry reported.
Craft beverage sales decreased in 2024:
- Hard cider sales: 1.8% decline in 2024.
- Craft brewer volume sales: 4% decline in 2024.
- Spirits supplier sales: 1.1% decline in 2025.
Decreased sales likely impacted hard cider companies, taprooms, and restaurants.
Hard cider producer Summit Hard Cider and Perry Company filed for Chapter 11 protection to reorganize its business, which includes its Scrumpy’s bar and restaurant in Fort Collins, Colo.
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Summit Hard Cider and Perry files for bankruptcy protection
The debtor filed its Subchapter V petition in the U.S. Bankruptcy Court for the District of Colorado, listing $100,000 to $500,000 in assets and $1 million to $10 million in liabilities on Aug. 13.
Related: Unusual bar and restaurant chain files Chapter 7 bankruptcy
Summit Hard Cider filed a reorganization plan along with its Chapter 11 filing, according to the petition.
The hard cider company, which specializes in producing alcoholic beverages made from fermented apple and pear juices, operates a production facility and taproom in Fort Collins.
Summit Hard Cider sells nine different varieties of its beverages in cans that are available at its taproom and about 28 other retail locations.
The hard cider company’s canned varieties include Della’s Apple Strudel, Strawberry Basil, Blueberry Lavender, Chocolate Cherry, Peach, Dry Hard Cider, Pineapple, Rasbenero, and Blackberry Cobbler.
The company’s beverages are available on tap at about 99 restaurants and pubs in Colorado, according to its website.
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The company previously operated as Summit Mobile Juicing, according to the petition.
Similar industry distress that hard cider companies experienced was also felt in the craft beer and spirits industries.
Craft breweries file for bankruptcy
Among the craft breweries to file for bankruptcy in recent months were Memphis Made Brewing Company, which filed for Chapter 11 bankruptcy protection on Aug. 7 to restructure its debts, about a year after closing its original brewery location.
Also, Inglewood, Calif.-based Three Weavers Brewing Company‘s parent GRDN Hospitality LLC filed for Chapter 11 bankruptcy on July 24 to reorganize its business.
The spirits sector also had its share of distress as popular distilled spirits producer Dented Brick Distillery’s parent company Salt Lake City Distillery LLC filed for Chapter 11 bankruptcy on July 10 to reorganize its business and continue as a going concern.
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