The craft beer industry has faced two years of economic difficulties, which have led to several companies closing their brewery operations.
Brewers have blamed rising costs driven by inflation and tariffs, consumers’ changing attitudes toward drinking alcohol, and high competition for the beer dollar as reasons for their economic challenges.
Tariffs have been the latest problem facing breweries, as many use aluminum for their beer cans and paper products for packaging that can be subject to tariffs.
Craft brewers’ struggles were reflected in the Brewers Association’s 2025 Midyear Market report released in July, which showed brewery closings outpacing openings, with 9,269 breweries operating in June 2025, down 1%, compared to 9,352 in June 2024.
Craft brewery operating numbers decline:
- U.S. craft breweries operating in June 2025: 9,269.
- U.S. craft breweries operating in June 2024: 9,352.
The number of operating craft breweries has also plummeted significantly from 2024 and 2023, based on the association’s report.
The number of operating craft breweries declined nationwide to 9,680 in 2024, down from 9,747 in 2023.
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It was also the fourth consecutive year that the number of new brewery openings declined, with 434 new breweries opening and 501 closing in 2024, according to the Brewers Association.
And now, severe financial difficulties will force a once-dominant craft beer company to close its brewery, taproom, and separate brewpub on Nov. 4 after 25 years of serving its fans.
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21st Amendment Brewery shuts down
21st Amendment Brewery revealed on Instagram that it will close its doors, including its San Francisco-based brewpub and its San Leandro, Calif., brewery and taproom in the East Bay, in less than two months.
The company faced a major decline in sales during a downturn in the American craft beer market, which resulted in its lender informing the brewer that it would no longer fund the company due to its “cash bleed,” the company’s co-founder Nico Feccia told the San Francisco Chronicle.
Sales plummet 20% each year
21st Amendment’s co-owner shared that his company’s sales had declined by about 20% each year since 2021.
Competition from hard seltzers and ready-to-drink cocktails and reports of a decline in consumption of alcoholic beverages had contributed to the sales slump, Freccia said.
The craft brewer also faced significant headwinds, Freccia said, including rising costs of brewing ingredients, transportation, and tariffs on aluminum and paper that are needed for canning and packaging beer.
“It’s the perfect storm to challenge craft beer, on top of significant headwinds,” Freccia said.
The owners hope to find a buyer who will keep brewing their craft beer.
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- Major furniture manufacturer closes down, no bankruptcy
- Iconic pizza chain’s franchisees close multiple restaurants
- Iconic retail chain closing over 100 stores in bankruptcy
Freccia and his partner Shaun O’Sullivan founded 21st Amendment Brewery on Second Street in San Francisco’s South Park neighborhood in 2000, two blocks from the San Francisco Giants’ Pacific Bell Park — now named Oracle Park — which opened in the same year, according to the company website.
The brewery started canning its beer at the Second Street location in its early years, since cans preserve freshness longer than bottles.
21st Amendment opens brewery in former Kellogg’s plant
The company began brewing with a Minnesota partner in 2008 and expanded to large-scale production in 2015 when it began operating its brewery in a former Kellogg’s cereal factory in San Leandro.
21st Amendment became one of the top 50 craft breweries in the nation, peaking at No. 26 from 2016-2019, according to the Brewers Association.
21st Amendment Brewery milestones:
- 2000: 21st Amendment Brewery opens 2 blocks from San Francisco Giants’ Pac Bell Park.
- 2015: 21st Amendment opens San Leandro, Calif., brewery in former Kellogg’s cereal plant.
- 2016-2019: Ranked No. 26 among nation’s craft brewers.
- 2025: 21st Amendment closing brewery, taproom, and brewpub.
The Covid-19 pandemic slowed the company’s expansion and it never reached maximum capacity at the East Bay facility, the Chronicle reported.
21st Amendment has not indicated whether it plans to file for bankruptcy protection as it closes down its operations, as some other craft brewers have done.
Craft breweries file for bankruptcy
Recent brewer bankruptcy filings have included Dissent Craft Brewing, which shut down its flagship brewery location in St. Petersburg, Fla., and filed for Chapter 7 bankruptcy liquidation on Aug. 25, two years after closing its Lakeland, Fla., brewery.
Finally, craft brewer Memphis Made Brewing Company filed for Chapter 11 bankruptcy on Aug. 7, 2025, about a year after closing its original brewery location.
The debtor did not indicate a reason for filing for bankruptcy in its petition.
Related: Popular beer brand, brewery files Chapter 7 bankruptcy, liquidates
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