The craft brewery industry has been facing significant challenges over the past two years, marked by closures and bankruptcies across the country. In 2024, the sector saw its first decline in operating breweries since 2005, with the number of active craft breweries falling to 9,680 from 9,747 in 2023. This downturn comes amidst a broader trend of decreasing new brewery openings, which have declined for four consecutive years. In 2024, only 434 new breweries opened, while 501 closed.
The Brewers Association reported a 4% decrease in production, with American craft brewers producing 23.1 million barrels of beer in 2024. Despite this decline, the craft beer industry’s market share remained steady at 13.3%, the same as in 2023. Meanwhile, the overall beer market saw a slight contraction of 1.2% in volume.
The struggles continued into 2025, with several breweries filing for bankruptcy. Among the notable cases was San Antonio’s Alamo Beer Company, which filed for Chapter 11 bankruptcy protection on February 3, 2025. The company intends to restructure its debt and continue operations.
The situation in San Antonio reflected broader financial difficulties within the region’s craft beer sector. Several local breweries, including Weathered Souls Brewing Co. and Busted Sandal Brewing Co., closed in the fall of 2024, and Freetail Brewing Co. ceased its beer distribution operations.
Another significant bankruptcy filing occurred on April 28, 2025, when Nebraska Brewing Company, a well-known brand from La Vista, Neb., filed for Chapter 11 protection. The company cited economic uncertainty and ongoing supply chain issues as primary factors influencing its decision.
In North Carolina, the financial woes within the craft brewery sector also became evident. On April 8, 2025, Cotton House Craft Brewers, based in Cary, N.C., filed for Chapter 11 bankruptcy protection after enduring significant financial strain over the last two years. The following day, Brüeprint Brewing Company, another Cary-based brewery, filed for Chapter 7 bankruptcy, indicating a likely closure and liquidation of its assets.
Further compounding the difficulties in North Carolina, The Duck-Rabbit Craft Brewery, an award-winning brewery from Farmville, N.C., filed for Chapter 7 bankruptcy on April 29, 2025. The filing marked the brewery’s permanent closure, as it moved to liquidate its assets. According to BankruptcyObserver, the brewery listed assets between $100,000 and $1 million, and liabilities between $1 million and $10 million.
Paul Philippon, the owner of Duck-Rabbit Craft Brewery, shared a heartfelt message on the brewery’s Facebook page, announcing that the weekend of April 26 would mark the final days of operations. “It’s hard for me to let you know that this will be Duck-Rabbit’s last weekend,” Philippon wrote. “I know that this is the right decision, but I still can’t help but know that I’ll miss you and everything Duck-Rabbit.”
Founded in 2004, Duck-Rabbit brewed a variety of beers, including Amber Ale, Baltic Porter, and Milk Stout, and distributed its products to nine states. The brewery also welcomed visitors to its taproom, offering tours and fostering a loyal customer base.
As closures and bankruptcies continue to shake the craft brewery landscape, the sector faces an uncertain future amid financial challenges and shifting market conditions.
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