Alamo Beer Company Files for Chapter 11 Bankruptcy Amid Struggling Craft Beer Industry in San Antonio

The Struggles of the Craft Beer Industry

The craft beer scene has been facing some tough times recently, with many once-thriving breweries experiencing financial difficulties.

One of the latest casualties is Alamo Beer Company, a beloved brand based in San Antonio, Texas, which has now filed for Chapter 11 bankruptcy protection.

This is yet another sign of how tough things have become for alcohol producers, especially in a challenging market.

Alamo Beer’s Situation

Alamo Beer, known for its signature golden ale, lager, and hazy IPA, has been brewing beer since 2003.

Currently, the brewery produces 7,500 barrels of beer annually from its 14,000 square-foot facility.

Despite this, the brewery has the capacity to produce up to 40,000 barrels a year, meaning it’s only operating at 20% of its full potential.

Eugene Simor, the founder and owner of Alamo Beer, told local news station KSAT that the company plans to restructure, recapitalize, and come back stronger.

This move is part of the brewery’s strategy to try and overcome the financial challenges it’s currently facing.

Expanding and Acquiring

In recent years, Alamo Beer expanded its reach by acquiring other brands.

Notably, in 2023, it purchased ShotGun Seltzer, based in Austin, and merged with local beer brand Viva Beer.

However, the company’s growth wasn’t enough to keep it from financial strain, as recent filings reveal that Alamo Beer’s assets and liabilities are estimated to be between $1 million and $10 million.

Simor also mentioned that the craft beer market has seen slowed growth, which hasn’t helped their position.

To stay afloat, Alamo has already begun selling off parts of its real estate holdings, including a parking lot adjacent to its main location.

Bigger Picture: Challenges in the Alcohol Industry

The difficulties faced by Alamo Beer are not isolated.

The alcohol industry at large has been under pressure.

Companies are battling increasing production costs while consumers are tightening their spending. These challenges have led to several high-profile bankruptcies in the industry, not just among small craft breweries but also larger, more established names.

For example, Vintage Wine Estates, once the 15th-largest producer of wine in the U.S., filed for Chapter 11 bankruptcy in mid-2024.

The company also had to sell parts of its real estate holdings to stay in business. Meier’s Winery, one of the oldest wineries in the country, eventually closed its doors after filing for bankruptcy as well.

Even big names like Molson Coors weren’t immune, as they shuttered Leinenkugel’s Brewery in Wisconsin after 150 years of operation.

The Larger Impact

The struggles of these alcohol companies reflect a broader trend within the industry.

Many businesses are having to make difficult decisions to remain viable, including selling off assets or closing locations.

As the costs of production rise and customers pull back on discretionary spending, it’s clear that the alcohol industry is in the midst of a challenging period.

Alamo Beer’s story is a reminder that even well-established brands can struggle to adapt in a changing market, and it’s uncertain what the future holds for many smaller breweries.

Only time will tell if Alamo’s restructuring efforts will be successful or if it will join the growing list of companies that have faced the same fate.