Americans are drinking less beer. Overall sales dropped by about 5% in 2023 for a variety of reasons.
Some people blame the economy and inflation, but as far as affordable luxuries go, beer falls on the cheaper end of the list. There might be some people trading in their pricey locally-brewed craft beer for cheaper mass-market beers — that's likely at least partially why a variety of craft brand beers went out of business in 2023 — but it's probably not the chief reason overall sales have fallen.
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You can, of course, also point your finger at the Kid Rock-led boycott of Anheuser-Busch InBev's (BUD) -) Bud Light. The right-wing-leaning singer sparked a boycott of Bud Light after the brand partnered with transgender social media influencer Dylan Mulvaney to reach out to the LGBTQ+ community.
Those efforts hurt Bud Light, which lost about 26% of its sales, but it's unlikely those former customers stopped drinking beer. Instead, they almost certainly switched to another light beer brand.
The true damage to the beer industry and the reason for the nationwide drop in sales might simply be changing tastes and more options for consumers. Younger drinkers may be opting for hard seltzers and ready-to-drink cocktails while older consumers might simply be diversifying their drinking a bit.
A move away from beer, however, has been very bad for the craft beer industry, and another local brewery has filed for Chapter 11 bankruptcy protection.
Image source: Anheuser Busch
Another regional brewery files for Chapter 11 bankruptcy protection
The covid pandemic likely also played a part in so many local breweries going under. Anchor Brewing, one of the best-known independent craft breweries, was liquidated in July as part of a trend that has claimed multiple regional brewers.
Many of these brands took on debt during the lockdown days of the pandemic when they lost in-person business but still had to pay rent on bars and taprooms.
Now, Guanella Pass Brewing, a Colorado beer company that operates two locations, has filed for Chapter 11 bankruptcy protection.
"At the foot of the Guanella Pass Scenic Byway in Historic Georgetown, CO sits the original Brewery, and at the foot of Berthoud Pass in downtown Empire sits our second taproom and kitchen. A true mountain brewery. We believe that where you drink beer is as important as what beer you drink," the company shared on its website.
Those locations both appear to still be operating during the Chapter 11 process.
Regional brewery dragged down by debt
Guanella Pass Brewing entered Chapter 11 on Dec. 30. The company reported $2.3 million in debt, far more than the $860,000 in gross revenue that it generated in 2023, the Denver Post reported.
The brewery actually has a unique place in local history.
"Guanella Pass became Georgetown’s first brewery since Prohibition when it opened in May 2017 at 501 Rose St. in the tiny Clear Creek County town," the Post said.
The company has 16 owners, led by Steven and Stacey Skalski of Evergreen, Colo. They are its majority shareholders, according to the Post.
The owners have not commented on the bankruptcy filing and did not respond to the Post's inquiries about it.
Guanella Pass has continued to update its Facebook and X (the former Twitter) pages sharing events and posting branded merchandise for sale without making any mention of the Chapter 11 bankruptcy filing.
In addition to its own locations, the company's beers are on tap at several other bars in the region.
Guanella Pass Brewing did not respond to a request for comment from TheStreet sent through the media contact form on its website.
