Artisanal Brewing Ventures (ABV) has laid off about two dozen employees this week, Brewbound has learned.
The craft rollup – which includes Victory Brewing, Southern Tier, Sixpoint Brewery and Bold Rock Cider – primarily eliminated jobs in sales, according to a person with direct knowledge of the situation whose identity Brewbound has agreed not to reveal.
ABV did not share how many people were affected by the layoffs. A spokesperson shared the following statement with Brewbound:
“Industry headwinds and high levels of inflation have impacted our business and like so many others in the industry, we are right sizing the organization to fit current volume conditions. The reorganization will allow us to be more operationally efficient and position the company for future growth in the alcohol beverage industry. Those impacted by the changes will be receiving severance, medical benefits and outplacement services.”
Many of the affected employees were offered severance packages that represented one week of pay per two years of service, according to Brewbound’s source.
ABV restructured its sales force in December 2022 to reorganize its efforts on off-premise retail. That round of cuts affected “a handful” of jobs, CEO John Coleman told Brewbound at the time.
ABV was the seventh-largest craft brewery in the country by volume in 2023, according to the Brewers Association (BA). Last year, its input increased +1%, to 394,676 barrels of beer, which accounts for 1.69% of the BA-defined independent craft beer sold in the country.
Before last year’s +1% increase, ABV had two down years following the pandemic. The company’s volume increased +9% (436,466 barrels) in 2020 as consumers turned to the off-premise amid the closures of bars and restaurants. But in 2021 and 2022 as the on-premise limped through several false starts, ABV’s volume declined -7% and -3%, respectively, according to BA data.
ABV is the 22nd largest beer category vendor, with $45.3 million in sales at multi-outlet grocery, mass retail and convenience stores tracked by market research firm Circana year-to-date (YTD) through June 16 – a -7% decline compared to the same period last year. ABV’s volume, measured in case sales, declined -7.3% in the period.
The company’s recent declines are an acceleration from its past year. In the 52-week period ending June 16, ABV’s dollar sales declined -1.8%, to $109.4 million, and volume declined -2.3%.
In the four-week period ending June 16, ABV’s declines in both dollar sales (-9.6%) and volume (-10.3%) accelerated.
In February, ABV sold Victory’s Parkesburg, Pennsylvania taproom for $21.79 million to Fortress Investment Group, a private equity firm with a net lease practice that “has provided creative capital solutions to companies seeking to unlock the value of their real estate holdings to fund acquisitions, improve liquidity, strengthen balance sheets or redeploy into a wide range of corporate initiatives,” according to its website.
The Parkesburg facility is 212,000 sq. ft. and includes a production brewery and a taproom.
“The proceeds from the sale will be used for upgrades at other company locations,” according to a report about the sale on Traded.co. “As a Downingtown-based craft brewer, Victory Brewing Co. plans to reinvest the funds into marketing and facility renovations. The company will continue its operations in Parkesburg under a long-term lease arrangement.”
In January, a former Southern Tier server filed a lawsuit against ABV, alleging the company violated federal and state labor laws by undercompensating tipped employees. The class and collective action complaint alleged that former bartender Elizabeth Bell was paid an hourly wage of $2.83 per hour, plus customer tips, but was consistently asked to perform tasks that would not provide tips, as well as “off-the-clock” work prior to shifts.
At the time, ABV shared the following statement: “Craft Revolution, LLC d/b/a Artisanal Brewing Ventures (ABV) is aware of a lawsuit filed by a former employee against ABV in the United States District Court for the Western District of North Carolina. ABV does not comment on pending litigation. However, ABV’s policy is to fully comply with all applicable federal, state, and local wage-and-hour laws and regulations in the jurisdictions where it conducts business. ABV will respond to the allegations in the lawsuit through its legal pleadings in due course.”