The craft beer trade has struggled over the past two years, with total U.S. beer manufacturing and imports down 1% in 2024 and craft brewer quantity gross sales declining 4% in 2024 and about 5% in 2025, based on a Brewers Affiliation report.
Home beer shipments additionally declined 5.9% in 2025, shedding about 8.68 million barrels of beer, based on the Beer Institute as Beerbound reported.
Beer shipments declined in 2025
Shipments in 2025 reached 139 million barrels, a decline from 147.7 million barrels in 2024.
Shopper demand and alcohol consumption charges of youthful generations additionally declined, the Brewers Affiliation reported.
Elements and materials costs rise
“Raw material costs have emerged as a significant constraint in the North American craft beer market, with substantial increases in the prices of essential ingredients, such as malted barley and hops, alongside packaging materials like aluminum cans,” based on a 2026 North American Craft Beer Market Report by Mordor Intelligence.
“The impact of these cost increases has been particularly severe on production economics, forcing breweries to revise their pricing strategies and operational models,” the report mentioned.
All of that dangerous information led to companies shutting down, as brewery closures outpaced openings with 434 shutting down and 268 opening by mid-December, Brewbound reported on social media.
The closings had been devastating for craft beer followers who had been disenchanted to be taught their favourite brewpubs had shut down.
30-year-old The Brewer’s Artwork craft brewery stunned each staff and prospects by abruptly closing and submitting for chapter liquidation.
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Brewer’s Artwork recordsdata Chapter 7 liquidation
Among the many closings this yr has been the house owners of a longtime Baltimore craft brewery, The Brewer’s Artwork, which filed for Chapter 7 chapter to liquidate its belongings after all of a sudden shutting down its enterprise.
Previous Line Brewers LLC filed its petition within the U.S. Chapter Courtroom for the District of Maryland on Feb. 13, itemizing $100,000 to $1 million in belongings and $1 million to $10 million in liabilities, based on Public Entry to Courtroom Digital Information as reported by Chapter Observer.
Brewery abruptly shut down
The Brewers Artwork abruptly shut down its brewery and restaurant on Feb. 2, after 30 years of working, with an indication posted on its entrance window, based on WMAR-TV.
“Dear Friends, Sadly we had to permanently close our doors today, February 2, 2026. Thanks to all of you for all of your support over the years. Thanks for the memories. Best Wishes. The Brewer’s Art,” the signal mentioned.
The brewery proprietor didn’t state a cause for closing its enterprise, however the Comptroller of Maryland had positioned an $85,000 lien towards The Brewer’s Artwork on Dec. 12, 2025, WMAR reported.
Extra bankruptcies:
- 73-year-old household diner franchisee recordsdata Chapter 11 chapter
- Extra troubled regional airways file for Chapter 11 chapter
- Main division retailer model liquidates in Chapter 11 chapter
The Brewer’s Artwork web site has been disabled, apart from a message on the house web page:
“We have closed our doors forever. Thanks to the loyal support over the years,” the message mentioned.
Associated: World wine large closes main California vineyard, lays off dozens
The small craft brewer’s closing is symptomatic of a broader decline within the U.S. beer sector, as noticed with Anheuser-Busch’s closing of three breweries in Fairfield, Calif., on Feb. 22, 2026, Merrimack, N.H., in January 2026, and Newark, N.J., plant in December 2025.
The web site listed a partial menu that included flatbreads, garlic fries, mac and cheese, mushy pretzels, soup, and salads.
Previous Line Brewers, which opened the brewery in 1996, listed its largest collectors within the submitting, together with the U.S. Small Enterprise Administration, owed $199,000; M&T Financial institution, owed $101,000; State of Maryland, owed $85,500; and BendixHQ LLC, owed $78,000, The Baltimore Banner reported.
Proprietor Volker Stewart is owed $792,000 in a enterprise mortgage and unpaid wages.
Closing stunned staff
Stunned staff mentioned they weren’t conscious of the brewery’s monetary struggles, based on The Baltimore Banner.
The debtor listed belongings valued at $107,000, together with brewing gear and kitchen home equipment, valued at $75,000; Untapped beer kegs, valued at $4,500; and hops valued at $1,250.
Often, in such circumstances, no funds can be accessible to pay unsecured collectors.
The Brewer’s Artwork high collectors
- U.S. Small Enterprise Administration, owed $199,000.
- M&T Financial institution, owed $101,000.
- State of Maryland, owed $85,500.
- BendixHQ LLC, owed $78,000.
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