The Chicago production operation of Lagunitas Brewing Co. in North Lawndale is packing up and transferring to California this summer time, the corporate introduced Thursday, “amid converting tides within the craft beverage business” and declining gross sales and manufacturing.The native brewing arm will transfer to Petaluma, California, the place the corporate is founded and has its authentic brewhouse, by way of early August, the corporate stated in a information liberate. The Chicago taproom within the brewery can even shut. The corporate’s Chicago warehouse, adjoining to the brewing facility, will keep open.The closure will have an effect on 86 workers, the corporate stated. Some will paintings in far flung positions or relocate to California, whilst others will paintings in the course of the transition and get “departure applications together with give a boost to services and products and job-placement help,” the corporate stated.“We’re dedicated to managing this transition thoughtfully, easily and with deep appreciate for our valued Chicago Lagunitas workers,” Lagunitas spokesperson Sam Kennedy stated in a commentary.The corporate introduced a 12% layoff of its body of workers in 2018, about 100 workers around the corporate, as a result of force from the more and more crowded craft beer marketplace.Illinois ranks thirteenth within the U.S. for choice of craft breweries with about 300, in step with the Brewers Affiliation, a Colorado-based industry team representing craft brewers. The quantity has leveled off lately as a number of smaller brewers have close down, together with Metropolitan Brewing, which closed in December after submitting for chapter amid a dispute with its landlord, and Ørkenoy Brewery saying its closure in April.Craft brewer quantity gross sales reduced by way of 1% in 2023, in step with the Brewers Affiliation, whilst retail greenback gross sales higher by way of 3% to $28.9 billion, due partly to value will increase. Craft brewer gross sales make up just about 25% of the $117 billion U.S. beer marketplace.In line with the Brewers Affiliation, Lagunitas’ manufacturing quantity has been continuously declining. The corporate produced 765,000 barrels in 2023, down from 860,000 in 2022 and 900,000 in 2021. The corporate’s output in 2019 was once over 1 million barrels.Lagunitas’ gross sales in Chicago took successful when put next with different markets, in step with Beer Marketer’s Insights. The corporate’s greenback gross sales declined 14% in 2023 in Chicago multi-outlet and comfort shops. The corporate’s greenback gross sales had been additionally down 4% year-to-date thru early Would possibly, whilst quantity was once down 7%.Lagunitas’ partial transfer out of Chicago will result in a “extra environment friendly and versatile provide chain,” in step with the corporate, whilst additionally prioritizing innovation and acceleration of extra sustainable brewing.The corporate stated Chicago “stays a concern marketplace for Lagunitas,” and it’s going to proceed servicing spouse bars, eating places and retail outlets in and across the town.Lagunitas Brewing Co. began bottling its craft beer in Chicago in 2014. The corporate began as a small brewery in 1993 and has since expanded to over 48 international locations.
