Molson Coors announced it will be closing its brewery in Chippewa, Wisconsin which produces Leinenkugel’s Summer Shandy brew. The closure will result in the loss of roughly 56 jobs.
The Coors Light producer announced it would close the 150-year-old factory as it reshuffles its strategic approach to beer manufacturing, shifting operations to its Milwaukee plant.
“Following the end of a large contract brewing agreement and amid an ongoing canning line investment project at our Milwaukee brewery, we’ve made the decision to close two of our smaller brewing operations in Wisconsin and centralize statewide production at our main site in Milwaukee,” Brian Erhardt, Molson Coors’ chief supply chain officer, told Food Dive. “While never easy, these choices are made with much thought and consideration to position Molson Coors for continued success in Wisconsin and beyond.”
Leinenkugel’s first joined Miller Brewing Company, owned by Molson Coors, in 1988. Erhardt said the brand will continue to play a significant role in the company’s future.
“Ever since Leinenkugel’s joined Miller Brewing in 1988, the brand and Chippewa Falls have been a cherished part of our company and culture. That’s not changing,” Erhardt said. “Leinie’s Summer Shandy and the rest of the portfolio will continue to play a role in our premiumization plans.”
The move comes as Molson Coors reported declining beer sales in its August earnings call, with brand volumes declining 7.3% in its last quarter. CEO Gavin Hattersley told investors the company would make moves to cut costs in order to offset the slump.
As the category faces headwinds amid continued inflation, other beer producers are changing their manufacturing approach. AB InBev shuttered a Massachusetts distribution center this fall, resulting in nearly 200 jobs lost.
