A Glimpse of Hope in 2023
Despite the challenges, the beer industry showed some signs of recovery in 2023. The number of operating breweries increased slightly to 9,906 from 9,824 in 2022.
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Additionally, 495 new breweries opened, though 418 closed, illustrating the volatile nature of the market.
Iconic Anchor Brewing's Closure and Revival
One notable closure in 2023 was San Francisco’s Anchor Brewing, founded in 1896.
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After filing for Chapter 11 bankruptcy in July 2023, the brewery was purchased by Hamdi Ulukaya, the billionaire owner of Chobani yogurt, in May 2024, with plans to reopen the business and restore its iconic status.
The Spirits Industry's Struggles
The spirits industry has also faced significant challenges. In March 2024, Colorado-based Lee Spirits Co. filed for Chapter 11 bankruptcy, citing the pandemic and changing market dynamics.
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Montana Distillery followed in April 2024, blaming rising costs and decreased revenues for its financial distress.
Never Forget Brands' Bankruptcy Filing
Never Forget Brands, the maker of GameDay Vodka, filed for Chapter 11 bankruptcy on July 10, 2024.
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The Isle of Palms, S.C. company owes significant amounts to several NFL teams, including $560,000 to the Buffalo Bills and $500,000 to the Denver Broncos’ affiliate Stadium Management Co.
Significant Debts to NFL Teams
In addition to the Buffalo Bills and Denver Broncos, Never Forget Brands owes $450,000 to the New England Patriots affiliate Kraft Sports and Entertainment, $150,000 to the Baltimore Ravens, $150,000 to the New Orleans Saints, and $110,000 to the Indianapolis Colts.
NFL
The company also faces a judgment lien for $377,678 owed to Revel XP.
Financial Overview of Never Forget Brands
Never Forget Brands listed $14.8 million in total assets and $13.7 million in total liabilities in its bankruptcy petition.
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Among its largest unsecured creditors are Pavisa USA, a glass bottle manufacturer owed $2.1 million, and Learfield Communications, a collegiate sports marketing company also owed $2.1 million.
GameDay Vodka's Rapid Growth
GameDay Vodka experienced rapid growth since its inception. By 2022, it had become the official vodka of 14 NFL and NCAA teams.
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In June 2022, the company launched GameDay Spiked vodka cocktails, offering flavors like fruit punch, lemon-lime, and strawberry lemonade, each with 99 calories and 5% alcohol by volume.
The Chapter 11 Bankruptcy Process
The Chapter 11 bankruptcy process allows Never Forget Brands to reorganize its debts while continuing operations.
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During this period, all litigation involving the company is subject to an automatic stay, giving the company breathing room to develop a plan to pay off its creditors.
Challenges Faced by the Craft Beverage Industry
The financial struggles of Never Forget Brands highlight the broader challenges faced by the craft beverage industry.
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Rising costs, supply chain disruptions, and changing consumer preferences have all contributed to the economic difficulties experienced by breweries and distilleries.
Looking to the Future
As Never Forget Brands navigates its bankruptcy proceedings, the future of GameDay Vodka remains uncertain.
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However, the company’s story reflects the resilience and adaptability needed in the craft beverage industry to overcome the challenges posed by the Covid-19 pandemic and an evolving market landscape.
The Road Ahead
The road ahead for Never Forget Brands and the craft beverage industry is full with challenges.
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However, the efforts of companies like Anchor Brewing offer hope that the industry can recover and thrive in the post-pandemic world.