Alamo Beer Co., the largest craft brewery in San Antonio, has filed for Chapter 11 bankruptcy reorganization. This move comes as the company faces challenges due to a nationwide decline in beer consumption. The filing, made on Monday, lists both assets and liabilities estimated between $1 million and $10 million. A more detailed report is expected soon, which will provide a clearer picture of the company’s financial situation.
Struggles in the craft beer industry
Alamo Beer owner Eugene Simor had already hinted at difficulties last fall when he put the brewery and its two-acre property up for sale. Simor explained that the value of the property had surpassed the value of the brewery’s production operations. At the time, he also mentioned exploring other options to strengthen the business.
Chapter 11 bankruptcy allows a struggling company to reorganize its finances while continuing operations. The goal is to pay off debts and eventually return to normal business activities. For Alamo Beer, this means finding a way to address its financial challenges while keeping the brewery running.
Last fall, Simor revealed that Alamo Beer was operating at less than 20% of its full capacity, despite being able to produce 40,000 barrels of beer annually. To address this underutilization, the company merged with San Antonio-based Viva Beer and acquired Austin’s ShotGun Seltzer in 2023. These moves were aimed at boosting production and diversifying its offerings.
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Industry-wide challenges
Alamo Beer is not alone in facing difficulties. The craft beer industry has been hit hard in recent years as consumer preferences shift away from traditional beer. Many people are now choosing wine, spirits, flavored malt beverages, and hard seltzers instead. At the same time, operating costs for breweries have been rising, making it even harder for businesses to stay afloat.
Other San Antonio breweries, such as Weathered Souls Brewing Co., Busted Sandal Brewing Co., and Second Pitch Brewing Co., have already closed due to these tough conditions. Simor summed up the situation last February, saying, “You add all this up, and it is making it very, very difficult for craft brewers.”
The filing for Chapter 11 bankruptcy is a significant step for Alamo Beer, but it also offers a chance for the company to restructure and potentially recover. As the craft beer industry continues to face challenges, Alamo Beer’s efforts to adapt and reorganize will be closely watched by both industry insiders and loyal customers.
