Brewscape: The Latest Craft Beer Brand News

6 Dead in Shooting at Molson Coors’ Milwaukee Campus

Six people died in a shooting at Molson Coors’ Milwaukee brewery in late February. The Milwaukee Police Department identified the five victims of the shooting as:

• Jesus Valle Jr., 33, of Milwaukee
• Gennady Levshetz, 61, of Mequon
• Trevor Wetselaar, 33, of Milwaukee
• Dana Walk, 57, of Delafield
• Dale Hudson, 50, of Waukesha

Police identified 51-year-old Anthony Ferrill, who died from a self-inflicted gunshot wound at the scene, as the suspected gunman. Ferrill was an electrician at the brewery.

A motive for the shooting was “still under investigation.” The Washington Post reported that portrayed a “long-held culture of racism” at the Milwaukee brewery in which workers tacked up racist cartoons in work spaces, scrawled graffiti in bathrooms and break rooms, and a 2015 incident in which a noose was placed on Ferrill’s locker.

Molson Coors’ Milwaukee brewery reopened about a week later. The second-largest beer producer in the U.S. said it will increase security measures at the facility, including bag checks at all locations, as well as additional armed and unarmed security guards.

About 1,000 people work at the Milwaukee campus, where there are more than 20 buildings, including brewing facilities, offices and a visitor center.

Meanwhile, the “Miller Valley Survivors Fund, a crowd-sourced fundraiser to support the families of the victims, has raised more than $1.1 million at the time of publication.

Stone Brewing Closes Shanghai Taproom

In March, Stone Brewing shuttered its taproom in Shanghai, China, citing pressures from tariffs and COVID-19, the coronavirus disease caused by SARS-CoV-2.

“We faced challenges over the past year with dramatically increased tariffs, and now the Coronavirus,” co-founder and executive chairman Greg Koch said in a statement. “Both factors had a significant impact on our ability to further invest in the market as planned.”

The San Diego craft beer maker had announced a temporary closure of the taproom due to concerns over coronavirus but that turned permanent a week later.

In July 2018, Stone opened the 3,200 sq. ft. taproom, which featured 30 taps, in Shanghai’s Changning District. The Shanghai taproom’s closure comes just under a year after the announcement of the sale of Stone’s brewery and taproom in Berlin, Germany, to Scotland-headquartered BrewDog.

“We’re grateful to our team for putting such amazing effort into growing craft beer and adding diversification to the beer culture in Germany and China,” Koch said. “The passion and appreciation for Stone beers continues to grow internationally, and I thank our team past and present for their passionate drive that helped us accomplish so much.”

Stone operates two breweries in the U.S., as well as eight retail locations in California and one in Richmond, Virginia. The company produced 391,320 barrels in 2019, a slight decline from the 400,000 barrels produced in 2018.

Gordon Biersch, Rock Bottom Parent Company Files for Chapter 11 Bankrupcy Protection

After closing 37 restaurants, Craftworks Holdings filed for Chapter 11 bankruptcy protection in early March.

Craftworks — the Nashville, Tennessee-based parent company of the Gordon Biersch, Rock Bottom, Logan’s Roadhouse and Old Chicago chains, among others — also requested approval of a “stalking horse” asset purchase agreement with an affiliate of its senior lender, Fortress Credit Co., in order to start a competitive bidding process for the business.

As of the March 3 filing, Craftworks said its outstanding debt was about $235.4 million, including secured debts of $131.7 million to Fortress Credit Co., and $4.7 million and $35 million to Wells Fargo Bank/National Association.

In a court filing, Craftworks CEO Hazem Ouf said the company’s capital structure has been overleveraged since the November 2018 acquisition of the Logan’s Roadhouse chain. Following the Logan’s transaction, Craftworks projected revenue growth of 1.5% in 2019, but those projections fell short as sales declined about 1%, resulting in a gross margin loss of about $27 million.

Ouf, in a press release, said the company had “made significant progress” over the last 16 months to transform its business and position its brands “for long-term growth and success.”

“Our goal is for CraftWorks Holdings to emerge with a strengthened balance sheet and a further optimized real estate portfolio that will allow us to execute on our growth strategy, compete more effectively in the casual dining environment in areas in which we have a proven track record of success, and continue to invest in enhancing the dining experience for our millions of raving fans nationwide, whom we look forward to serving for many years to come,” he said.

Craftworks’ 261 company-owned locations in 39 states and Washington, D.C., will continue operating during the bankruptcy process. The company added that its 77 franchise locations are not included in the bankruptcy proceeding and continue to operate as usual.

Adam Lambert to Join Roak Brewing and Dark Horse as President

After more than a year as chief revenue officer for BrewDog USA, long-time beer industry sales exec Adam Lambert is joining Michigan’s Roak Brewing Company and Dark Horse Brewing Company as president.

The two microbreweries announced a deal in September that finally closed this past February, leading to the formation of the Michigan Brewers Union platform.

“I’ve been a huge fan of Roak and Dark Horse for some time, both make world class beers, have incredible stories and a remarkable cult following,” Lambert wrote in a note to industry friends. “Having spent most of my career in sales and marketing, I’m truly looking forward to taking on the challenge of running two breweries, two restaurants and a market.”

Craft Brew Alliance Shareholders Vote in Favor of Merger with Anheuser-Busch

The marriage of Craft Brew Alliance (CBA) and Anheuser-Busch InBev cleared another hurdle in late February as shareholders of the Portland, Oregon-headquartered craft beer maker voted to approve a sale of the company to the world’s largest beer manufacturer.

According to a press release, more than 98% of the shares, who voted by proxy and at the special meeting, were in favor of the deal, including a majority of outstanding shares held by investors other than A-B or related interests.

“Today’s decisively positive shareholder vote brings us even closer to cementing our expanded partnership with A-B,” CBA CEO Andy Thomas said in a press release. “For more than 25 years, our two companies have been working together to enrich the beer landscape with the highest-quality craft beer offerings, and we’re excited to build on that strong foundation and satisfy more consumers as one combined company.”

The transaction still must meet regulatory approval, and the companies say the deal is expected to close in 2020.

Sierra Nevada to Launch Strainge Beast Hard Kombucha

Sierra Nevada’s new innovation arm, the Chico Fermentation Project, announced in February its debut release: Strainge Beast Hard Kombucha, the company’s first-ever beyond beer offering.

“I’ve been drinking kombucha for some time, and the team has done a fantastic job of coming up with really nice flavor and balance,” founder and president Ken Grossman said in a release.

Strainge Beast’s first flavor to market will be Ginger, Lemon and Hibiscus, which pours bright pink and checks in at 7% ABV. Strainge Beast is also certified organic by the U.S. Department of Agriculture.

Strainge Beast will roll out on draft in the spring in San Francisco, Sacramento, Santa Cruz and San Diego, California; Portland, Oregon; Phoenix, Arizona; Asheville and Raleigh, North Carolina; Knoxville, Tennessee; and Tampa, Florida. The brand will launch in additional cities in May.

Two additional flavors — Blueberry, Acai and Sweet Basil; and Passion Fruit, Hops and Blood Orange — will follow after the draft launch. Cans of all three flavors will begin hitting retailers in August.