Speakeasy & $$$

[mesooohoppy]

http://www.mercurynews.com/2017/03/10/san-franciscos-speakeasy-brewery-shuts-down-operations/

I am curious (other than the obvious reasons), how can a brewery that has been open for 20 years be in debt (and have issues securing investors)? Does anyone have the inside scoop on what's going on at speakeasy?

They are in the process of new ownership. Safe to assume it had something to do with the old owners?

 

[MaryB]

My guess is this "and in 2015 the brewery increased production to 90,000 barrels a year, thanks to an expanded brewhouse with state-of-the-art equipment."

The economy is not supporting them like they thought it would.

 

[The_Bishop]

Quite simply - There are too many breweries and the manufacturing bubble end of it is starting to deflate. This is what happens when everyone and their brother opens a brewery, the market gets supersaturated.

 

[Homercidal]

Not every brewery can afford to expand to grab more market share. There are only so many craft beer drinkers, and some breweries will have to remain local and have a small footprint.

 

[Sailingeric]

Sounds like the went too big and went to fancy in one of the more expensive places to rent or own space. Once if they had a good distribution network before they expanded. Never had their beer but it is a shame to lose a business after that long run.

 

[The_Bishop]

Expansion is a gamble for a brewery. You can't establish a larger distribution network without more product to distribute. Brewhouses aren't very scalable, and to go bigger usually requires an entirely new brewhouse/facility. It's a huge leap of faith and a misstep, especially in this market, is fatal to the business.