Beer retailers have faced challenges over the last two years as the overall beer market in the U.S. declined by 1.2% in volume in 2024.
The craft beer subsector is looking to ramp up business in 2025 after craft beer production declined by 4% in 2024.
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Part of the problem might be a reduction in the amount of craft breweries, as new brewery openings in the U.S. declined for the fourth straight year. More breweries closed than opened in 2024 with 430 new breweries opening and 529 closing.
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Craft beer industry distress led to several brewery closings and bankruptcy filings.
As for beer retailers, a major franchise retail chain, Craft Beer Cellar, filed for Chapter 7 bankruptcy in February 2024 to liquidate its assets, suffering from financial distress and failing to sell its business.
The debtor faced a judgment against it from the Cambridge District Court in Medford, Mass., ordering it on Nov. 28, 2023, to pay $181,770 in unpaid rent and fees to its landlord, Albert J. Locatelli Realty Trust for its Belmont flagship location.
Beer retailer closed permanently
The debtor operated a Craft Beer Cellar bottle shop and German restaurant Trinktisch at a Belmont Center location. The debtor closed permanently at the end of 2023 after failing to find a buyer for the company.
Craft Beer Cellar opened its retail business in 2010 and later launched a franchise business that was initially successful.
The company built a chain of 33 franchises in 14 states and Washington, D.C., after it started franchising in 2012, according to All USA Franchises. The company, however, was down to four stores at the end of 2023 before finally closing.
The owners blamed effects from the Covid pandemic, a need for more life-work balance and irreconcilable differences with their landlord as reasons for closing their businesses.
Beer retailers, however, are sometimes forced to close locations that don’t make sense, while continuing to operate their successful stores.
Image source: Shutterstock
The Beer Store closes locations
In Canada, The Beer Store has revealed that it will close four of its retail stores on June 15 and convert one other retail site to a distribution warehouse.
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The Ontario, Canada-based operator of about 440 The Beer Store retail locations said in an April 23 statement that it would close two retail stores in Toronto, one in Ottawa, and another in Woodbridge, Ontario.
More closings:
- Popular retail chain to close unprofitable store locations
- Bankrupt retail chain unloads store leases, key asset
- Popular discount retailer files bankruptcy, closes all stores
The retailer will also close the retail portion of its Sault Ste. Marie, Ontario, store and fully transform the facility to a distribution warehouse to serve its logistics customers.
“The Beer Store has been in business for over 97 years, and we take pride in serving our customers with the best service possible while offering a wide selection of beer and an easy-to-return empty process,” Ozzie Ahmed, vice president of retail for The Beer Store, said in a statement.
“However, as the marketplace shifts, we must adapt our business model to ensure we continue to meet the needs of our customers. We are closely monitoring the performance of each store, and at times, may need to make the challenging decision to close select stores,” Ahmed said.
The Beer Store, which opened in 1927, is owned by 30 Ontario-based brewers who market over 1,000 beer brands made by about 200 brewers worldwide in their 440 retail stores. It’s the largest beer retailer in Ontario, and its logistics division has 26 distribution centers strategically located across the province.
The Beer Store asserts that it is committed to responsible sales and not selling to minors and people who are intoxicated. The company challenged more than 2.1 million customers on their age or intoxication in 2024, according to a statement.
The retailer only operates in the province of Ontario, Canada, and serves just under 18,000 licensed customers, 671 government-owned Liquor Control Board of Ontario retail locations, 327 retail partners and Liquor Control Board of Ontario convenience stores, and about 446 grocery stores selling beer, wine and cider.
The Beer Store promotes its alcohol container return program, which has resulted in customers returning 1.6 billion alcohol containers annually to its stores or to an empty return dealer, which pays customers deposits on beer, wine, and spirits bottles, aluminum cans, plastic bottles, tetra packs, and kegs.
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