Popular Beer Brand Shuts Down, No Bankruptcy Filed

The Struggles of the Craft Beer Industry

The craft beer industry has been facing significant economic challenges over the past two years, leading to the closure of several breweries. These difficulties have been attributed to a combination of factors including rising costs driven by inflation and tariffs, shifting consumer preferences towards alcohol consumption, and intense competition for market share.

Tariffs have emerged as a new hurdle for breweries, particularly since many rely on aluminum cans and paper products for packaging, which can be subject to import duties. This has added to the financial strain on an already struggling sector.

According to the Brewers Association's 2025 Midyear Market report, released in July, the number of brewery closures has outpaced new openings. In June 2025, there were 9,269 operating craft breweries, marking a 1% decrease from 9,352 in June 2024. This decline reflects a broader trend that has been observed over the past few years, with the number of operating craft breweries dropping significantly from 2024 and 2023.

In 2024, the number of operating craft breweries nationwide fell to 9,680, down from 9,747 in 2023. Additionally, this was the fourth consecutive year where the number of new brewery openings declined. In 2024 alone, 434 new breweries opened while 501 closed, according to the Brewers Association.

A Major Closure: 21st Amendment Brewery

One of the most notable closures is that of 21st Amendment Brewery, which will shut down its San Francisco-based brewpub, as well as its San Leandro, Calif., brewery and taproom on November 4. This marks the end of 25 years of operation for the company.

The co-founder of 21st Amendment, Nico Feccia, revealed to the San Francisco Chronicle that the company faced a major decline in sales during a downturn in the American craft beer market. This led to the lender informing the brewer that it would no longer fund the company due to its "cash bleed."

Sales at 21st Amendment had declined by about 20% each year since 2021. Factors contributing to this slump include competition from hard seltzers and ready-to-drink cocktails, as well as reports of declining alcohol consumption. Additionally, the company faced rising costs for brewing ingredients, transportation, and tariffs on aluminum and paper used for canning and packaging.

“It’s the perfect storm to challenge craft beer, on top of significant headwinds,” Feccia said.

The owners are hoping to find a buyer who will continue producing their craft beer. However, 21st Amendment has not indicated whether it plans to file for bankruptcy protection as it closes its operations, unlike some other craft brewers.

Recent Bankruptcy Filings

Several other craft breweries have also filed for bankruptcy in recent months. Dissent Craft Brewing, for example, shut down its flagship brewery location in St. Petersburg, Fla., and filed for Chapter 7 bankruptcy liquidation on August 25, two years after closing its Lakeland, Fla., brewery. Similarly, Memphis Made Brewing Company filed for Chapter 11 bankruptcy on August 7, 2025, about a year after closing its original brewery location.

These closures and bankruptcies highlight the ongoing challenges facing the craft beer industry. While some breweries have managed to adapt and thrive, others have struggled to keep up with changing market conditions and increasing operational costs.

A Legacy in Craft Beer

Despite its recent closure, 21st Amendment Brewery has left a lasting legacy in the craft beer community. Founded in 2000 by Nico Feccia and Shaun O'Sullivan, the brewery initially operated on Second Street in San Francisco's South Park neighborhood, just two blocks from the San Francisco Giants' Pacific Bell Park, now known as Oracle Park.

In its early years, the brewery started canning its beer at the Second Street location, as cans preserve freshness better than bottles. In 2008, the company began brewing with a Minnesota partner and expanded to large-scale production in 2015 when it moved to a former Kellogg's cereal factory in San Leandro.

During the period from 2016 to 2019, 21st Amendment was ranked No. 26 among the nation's top craft breweries. However, the pandemic slowed the company's expansion, and it never reached maximum capacity at the East Bay facility.

As the craft beer industry continues to face challenges, the story of 21st Amendment serves as a reminder of both the resilience and fragility of small businesses in a rapidly changing market.