The craft beer industry has been in trouble. Struggling sales forced yet another fan-favorite brand to file for bankruptcy. 

Alamo Beer Company, a San Antonio-based brewer, has filed for Chapter 11 bankruptcy, in the latest sign of struggles for alcohol sellers. 

Alamo produces 7,500 barrels of beer annually out of its 14,000 square foot facility. Alamo is popular for its golden ale, lager and hazy IPA.

According to Eugene Simor, the founder and owner of the brewery, the company has the capability to brew up to 40,000 barrels of beer annually, indicating potential for increased production.

It is operating under 20 percent capacity.  

‘The plan is to recapitalize, restructure and return stronger,’ Simor told Texas-based ABC affiliate KSAT.  

Alamo, which has been brewing since 2003, has grown in recent years through acquisitions. 

In 2023, the company purchased Austin-based ShotGun Seltzer and merged with local brand Viva Beer, according to the San Antonio Express News. 

Beer companies across the US have hit sales snags as customers cut back

Official documents submitted to court reveal that the company’s assets and liabilities fall within the range of $1 million to $10 million. Typically, a Chapter 11 filing is pursued by businesses looking to reorganize their operations or sell the company’s brand.

However, Simor acknowledged that growth in the craft beer sector has slowed. 

To stay afloat, Alamo has already sold parts of its real estate portfolio. 

‘The real estate value has escalated much faster than the distribution side of business,’ he said. 

The company is also looking to sell a parking lot adjacent to its flagship store. 

San Antonio has seen challenges within its alcohol industry over the last year. Several establishments, including Weathered Souls, Busted Sandal, and Second Pitch, have closed their doors in the city during 2023, highlighting a tough period for alcohol sellers in the area.

But the challenges facing the Texas-based companies are part of a larger trend in the alcohol industry. 

Companies are competing with increasing product costs while customers cut back on their discretionary spending.  

Alamo Beer Company filed for bankruptcy

The brand said it is hoping to ‘return stronger’

Alcohol and beer companies across the U.S. are facing cost headwinds

The headwinds have forced a handful of other alcohol and beer giants to file for bankruptcy, shutter locations, or cease operations. 

Vintage Wine Estates also filed for Chapter 11 bankruptcy in mid 2024. 

The company, previously the 15th biggest producer in the U.S., sold off parts of its real estate portfolio to remain in business. 

Meier’s Winery, one of the oldest wineries in the U.S. with 30 different products, also filed for bankruptcy before ultimately closing. 

Even Molson Coors shuttered a brewery after facing financial headwinds. 

The national producer shuttered Leinenkugel’s brewery in Chippewa Falls, Wisconsin, after over 150 years in business. 

Jake and Dick Leinenkugel, the sixth-generation of the brewery founder’s family, said they tried to purchase the hall back from Molson Coors. But they allege the company never responded to their requests. 

‘This brewery holds a deep legacy for the Chippewa Valley,’ Dick said.