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A schooner of beer shines in the light. (Photo by Fairfax Media via Getty Images via Getty Images)
OAKLAND, Calif. – The owners of Oakland-based Temescal Brewing announced on Friday that the company was in the early stages of filing for Chapter 11 bankruptcy.
The brewery, which is headquartered on Telegraph Avenue, announced the news in an Instagram post. The post, authored by CEO and owner Brandon Börgel, states that the COVID-19 pandemic “disrupted (Temescal’s) growth trajectory,” and the company was struggling with “an overwhelming amount of debt.”
“While this might sound ominous, this does not mean we are closing. Again, Temescal Brewing is not closing,” Börgel’s post states. “Instead, this critical step will allow us to continue operating the brewery while we restructure the business for long-term health. Despite a more challenging climate for the beer industry, our sales are strong and trending upward.”
Börgel’s post was referring to the dwindling interest in breweries that has been plaguing the industry in recent years.
A 2023 Gallup survey showed that between 2021 and 2023, 62% of adults under the age of 35 have ever had a drink. That number is a 10% drop from 20 years earlier.
Changing trends
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New Normal Brewing, LLC, Temescal’s parent company, has $50,000 to $100,000 in assets, and $500,000 to $1 million in liabilities, according to a federal bankruptcy filing.
The onset of the coronavirus pandemic curtailed the company’s plans to expand its footprint beyond its Telegraph Ave. taproom, but not before leadership in 2019 closed a deal to open a new facility in Jack London Square.
Craft beer sales have fallen by 4% in the last year, according to the Brewer’s Association, a trade group representing independent brewers and brewing trade professionals. Numerous breweries have in recent months announced plans to close, the most prominent of which was San Francisco’s 21st Amendment Brewery, which announced earlier this month that it would close its doors for good come Nov. 1.
Other local breweries have resorted to joining forces — Fort Point Beer Co. and HenHouse Brewing Co. made headlines in April with the announcement they would be merging into Fort Point HenHouse.