Another popular beer brand files Chapter 11 bankruptcy

According to THE STREET, Before the Covid pandemic, craft beer was on a high, with an explosion of new breweries and an enthusiastic audience well-versed in beer terminology. Conversations about beer often revolved around terms like “hoppy” and “malty,” and craft breweries were a common sight in many cities. Local breweries expanded regionally and even nationally, making interesting beers more accessible to consumers beyond their local taprooms.

However, the pandemic brought significant challenges to the craft beer industry. With social distancing rules in place, brewery and pub visits became impossible, and beer drinkers were confined to their homes. Additionally, the pandemic’s impact shifted consumer preferences, with some younger drinkers turning to alcohol-free and mixology-based drinks. As a result, the once-booming craft beer market slowed down. Data from Beer Marketer’s Insights (BMI) indicated that U.S. beer shipments were projected to reach their lowest level in 25 years by the end of 2023, following a 5% decline in the first three quarters of the year.

Salt Life’s Bankruptcy and Its Impact on Salt Life Beer

Amid these industry-wide challenges, another significant development has unfolded: the Salt Life beer brand has filed for Chapter 11 bankruptcy. This filing appears to be largely a result of its parent company’s financial troubles rather than direct issues with the beer brand itself.

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Salt Life, known for its lifestyle apparel inspired by the ocean and saltwater activities, is owned by Delta Apparel. Delta Apparel filed for Chapter 11 bankruptcy protection on June 30, 2024, in the District of Delaware. Salt Life Beverage LLC, the company responsible for the Salt Life beer, also filed for bankruptcy on the same day.

Salt Life Beverage LLC’s Chapter 11 filing reported assets between $50 million and $100 million and liabilities of around $500,000. Despite this, the bankruptcy appears to be a consequence of Delta Apparel’s financial situation. The beer brand was a joint venture between Delta Apparel and a partnership involving Richard Thompson, a founder of Salt Life, and Greg Tuttle, an award-winning craft brewer. Delta Apparel was the majority shareholder in this venture, and its financial difficulties have likely compelled Salt Life Beverage to seek bankruptcy protection.

The Future of Salt Life Beer

Salt Life beer, which was positioned as a crisp, clean American lager inspired by the ocean lifestyle, is no longer actively promoted, with its website now taken down. The brand’s legacy will remain through its association with the Salt Life lifestyle but faces an uncertain future as part of the bankruptcy process.

The broader craft beer market continues to navigate the post-pandemic landscape, facing shifting consumer preferences and economic pressures. For brands like Salt Life Beer, the combination of these factors has led to significant financial challenges, highlighting the ongoing struggles within the industry.