The sting of declining sales has adversely impacted the brewing industry as a whole but some of larger breweries, including Green Flash Brewing Co., have been hurt hardest. The San Diego-based brewery has already been seeking outside investors to buoy their sinking revenue. And just this past weekend, Green Flash put its Virginia Beach facility and all of its contents up for sale.
Green Flash is the 43rd largest craft brewery in the United States, according to data from the Brewers Association. The company had only just opened its new production facility in November 2016. And until now, that Virginia Beach brewery was responsible for producing all the company’s beer distributed east of the Mississippi River. Green Flash had hoped to be churning out 100,000 barrels each year from the new facility.
Instead, a precipitous drop in sales combined with the crushing debt of the new facility has placed Green Flash in an untenable position. And now Heritage Global Partners is presently accepting bids for the 50 barrel production facility and its accompanying tasting room. The auction also includes all parts of the brewery including its brewing equipment, bottling line, and kegging line.
According to Heritage, this sale is not a liquidation of the equipment but a turnkey operation only.
Earlier last week, brewing supplies were being delivered, beer was still being produced, and some of it was ready for packaging. But now that beer may never be consumed. Some of the brewing supplies will be redirected to the Green Flash headquarters in San Diego.
Many of the employees learned of the sale by reading about it online and are uncertain about the future of their jobs. Green Flash has already reduced its workforce by 15% and now more cuts seem likely.
Large Breweries Hurting
Green Flash isn’t the only brewery that’s been hurting. Recapitalization, sell-offs, and contraction are recurring themes in the national brewing landscape.