One day after a report that Anheuser-Busch InBev was ceasing operations and eliminating jobs at Cleveland, Ohio-based Platform Brewing, news of layoffs at other craft breweries in the company’s Brewers Collective has come to light.
Employees have been let go from Houston, Texas-based Karbach Brewing and Patchogue, New York-based Blue Point Brewing, according to LinkedIn posts from former workers. Citing anonymous sources, Craft Business Daily reported layoffs at Lexington, Virginia-based Devils Backbone and Asheville, North Carolina-based Wicked Weed.
Asked to confirm details about the layoffs, Andy Thomas, president of A-B’s High End division, said in a statement to Brewbound:
“Winning in craft remains a key pillar of our strategy to lead and develop the Premium segment, but winning means something different in today’s marketplace than it did a few years ago. This week, several of our craft brewery partners announced local team updates that will allow them to better address evolving consumer needs and trends in their home markets and beyond. As the craft industry continues to transform, we’re staying laser focused on continuing to lead growth in the segment.”
It is unclear how many employees and breweries have been affected and requests for clarification were not returned.
A-B has long had ties to craft beer, beginning with investment in Widmer Brothers and Redhook nearly 30 years ago, which evolved into the Craft Brew Alliance (CBA) in 2008, the platform of eight craft brands A-B acquired in totality in 2020 after owning a 31.2% share. The world’s largest beer manufacturer began acquiring craft breweries in its own right early in the last decade, beginning with its purchase of Goose Island in 2011.
Since then, the Brewers Collective has expanded to include 20 brands nationwide. A-B acquired Karbach in 2016; at the time, it was the fastest-growing craft brewery in Texas. The deal drew the attention of the U.S. Department of Justice following its investigation into A-B’s acquisition of Devils Backbone, which closed just two months prior to the announcement of the Karbach deal.
Blue Point Brewing was acquired by A-B in 2014, in a deal then valued at nearly $24 million. The now 25-year-old brewery was a top-50 craft brewery at the time, and produced an estimated 60,000 barrels of beer in 2013.
In 2018, Blue Point moved into a new 53,000 sq. ft. brewery in Patchogue, New York, which expanded the brewery’s own annual capacity from 14,000 barrels to 60,000 barrels, with the potential to scale up to 120,000 barrels. Two years later, following a -5% decline in annual production, the brewery revealed an updated logo and packaging, with a “cleaner, leaner look” that had a “pointed focus towards the future,” according to a press release. The refresh appeared to not have the intended success, as Blue Point continued to record production declines, from 100,000 barrels in 2018, to 75,000 barrels in 2021, according to the Brewers Association (BA).
In 2021, the most recent year for which data is available from the BA, the Brewers Collective brands’ volume increased +3%, to 2,720,500 barrels. The largest single brand in the family is Chicago-based Goose Island (465,000 barrels), followed by:
- Elysian (330,000 barrels);
- Golden Road (230,000 barrels);
- Shock Top (200,000 barrels);
- Karbach (176,000 barrels);
- Four Peaks (145,000 barrels);
- 10 Barrel (125,000 barrels);
- Breckenridge (110,000 barrels);
- Wicked Weed (97,000 barrels);
- Devils Backbone (85,000 barrels);
- Blue Point (75,000 barrels);
- And Platform (22,500 barrels).
CBA brands were not broken out separately, but produced 660,000 barrels combined in 2021. That figure excludes Kona Brewing’s Hawaii business, which A-B spun off to gain regulatory approval to acquire CBA.
Five Brewers Collective brands cracked the top 30 craft brands at off-premise retailers in 2022, according to market research firm IRI. Seattle-based Elysian’s Space Dust IPA was A-B’s best selling craft brand and the ninth-best selling craft brand overall, with $74.6 million in sales at multi-outlet grocery and convenience stores last year. Its dollar sales declined -4.2% compared to 2021.
No. 16 Kona Big Wave’s dollar sales increased +4%, to $47.3 million; its case volume was roughly flat, +0.2% compared to 2021. No. 20 Goose Island IPA ($28.1 million) recorded double-digit declines in both dollar sales (-18.5%) and case volume (-21.2%), as did No. 21 Shock Top Belgian White Ale ($27.5 million, -23.8% in dollar sales, -26.5% in case volume).
No. 23 Wicked Weed Pernicious IPA was a bright spot for the Brewers Collective. Its dollar sales increased +24.4%, to $26.3 million, and case volume grew +23.6%.
Following the news of Platform’s closing, fellow-Ohio craft brewery Saucy Brew Works has started a program to help recently laid-off employees. Beginning today, affected Platform employees can claim a daily free meal and beer at Saucy’s Cleveland brewpub. To redeem, employees must show their most recent pay stub to a Saucy bartender, according to a company spokesperson.