30-year-old beer brand files Chapter 7 bankruptcy to liquidate

Industry Overview - The craft beer industry has faced significant challenges over the past two years, with overall U.S. beer production and imports down 1% in 2024, and craft brewer volume sales declining by 4% in 2024 and approximately 5% in 2025 [1] - Domestic beer shipments decreased by 5.9% in 2025, equating to a loss of about 8.68 million barrels of beer [1][2] Market Dynamics - Consumer demand and alcohol consumption rates among younger generations have also declined, contributing to the overall downturn in the industry [2] - Rising raw material costs, particularly for essential ingredients like malted barley and hops, as well as packaging materials such as aluminum cans, have emerged as significant constraints in the North American craft beer market [3] Economic Impact - The increase in production costs has severely impacted production economics, prompting breweries to adjust their pricing strategies and operational models [4] - The negative market conditions have led to more brewery closures than openings, with 434 breweries shutting down and only 268 opening by mid-December [4] Company-Specific Developments - The Brewer's Art, a long-standing craft brewery in Baltimore, filed for Chapter 7 bankruptcy to liquidate its assets after abruptly shutting down its operations on February 2, 2026 [5][7] - The brewery listed assets between $100,000 to $1 million and liabilities ranging from $1 million to $10 million in its bankruptcy filing [6] - An $85,000 lien was placed against The Brewer's Art by the Comptroller of Maryland prior to its closure, although no specific reason for the shutdown was provided by the brewery owner [9]