More beer gloom as Molson Coors cuts one in ten US jobs after shuttering 157-year-old Midwest brewery
Molson Coors is slashing about 400 salaried jobs across its Americas business and closing one of America’s most storied breweries, as the beer industry faces a hangover from weak demand and changing drinking habits.
The cuts — roughly 9 percent of its salaried workforce — will be completed by the end of the year, the company said Monday.
They form part of a restructuring as the brand moves away from its famous beer roots to refocus on growth areas like mixers, non-alcoholic beverages, and energy drinks.
The shake-up comes after the brewing giant shut down the historic Leinenkugel’s brewery in Chippewa Falls, Wisconsin, in January after 157 years of continuous operation.
The site, known for producing Leinenkugel’s Summer Shandy, was bought by Molson Coors in 1988.
The closure has infuriated locals after sixth-generation brothers Jake and Dick Leinenkugel offered to buy back the brewery to keep it alive — an offer the company ignored. Fifty-six workers lost their jobs.
‘We would like to restore brewing operations at the Chippewa Falls site,’ Dick Leinenkugel said. The brothers’ formal request to negotiate was denied in January.
Brothers Jake and Dick Leinenkugel – the sixth generation of the family that founded the iconic Leinenkugel’s brewery in Chippewa Falls, Wisconsin, in 1867 – are trying to buy it back
How the brewery looked in 1930
The layoffs and brewery closure mark another blow for an industry in flux.
More Americans — especially younger drinkers — are cutting back on beer in favor of canned cocktails, mocktails, and energy drinks. The rise of GLP-1 weight-loss drugs and expanding cannabis use have also hurt demand.
Molson Coors, the maker of Miller Lite and Blue Moon, said it had expected sentiment to improve this year but that hasn’t happened.
It lowered its full-year outlook in August, citing weak beer sales, rising aluminum costs, and slower-than-expected market-share gains.
‘We’ve made progress on our transformation journey, but given the environment, we must transform even faster,’ chief executive Rahul Goyal said.
The company said the cost of the restructuring is between $35 million and $50 million, largely for severance payments and post-employment benefits.
Alcohol brands have suffered as Americans cut back on their drinking following the pandemic lockdowns.
Vintage Wine Estates – the 15th biggest producer in the US – filed for bankruptcy last summer, blaming Americans drinking less.
Dick Leinenkugel stayed on at the brewery after it was bought by Molson Coors. He now wants to buy it back with his brother
Leinenkugel’s joined Miller Brewing Company, owned by Molson Coors, in 1988
How a German immigrant turned Chippewa Falls into beer heaven
Jacob Leinenkugel and his family
It all started in 1845, when Jacob Leinenkugel left Meckenheim, Germany¿where his father was a famous brewer¿and set his sights on Chippewa Falls, Wisconsin.
With its rich soil, ideal for growing hops and grains, the logging town was the perfect place for Jacob to open his brewery in 1867. It wasn’t long before the town’s hardworking lumberjacks became loyal fans of his beer!
After Jacob’s passing, his legacy lived on. Generations of Leinenkugels¿his children, grandchildren, great-grandchildren, and even great-great-grandchildren – worked tirelessly to expand the brand. They even teamed up with Wisconsin legends like Ray Scott, the iconic ‘Voice of the Packers,’ for memorable ad campaigns!
In 1988, the family sold the company to Miller Brewing, but the Leinenkugel spirit endured, with sixth-generation family members still overseeing day-to-day operations.
It’s a story of passion, resilience, and Wisconsin pride – and it all started with one German immigrant and a dream.
Soon after, one of the country’s oldest wineries, and an affiliate of Vintage, also filed for bankruptcy, citing similar upheavals.
Meier’s Winery, which produces more than 30 different wines, shuttered in a blow to the homegrown wine industry.
Founded in 1890, it was Ohio’s oldest and largest winery and even uses Native American grape varieties.
Meanwhile, a wave of American whiskey distilleries are collapsing under the weight of mounting debt, falling demand, and rising global tensions — signaling a crisis for the once-booming industry.
The latest to fall the owner of the Luca Mariano Distillery in Danville, Kentucky, which filed for Chapter 11 bankruptcy last month with an estimated $25 million in debt.
Luca Mariano follows the high-profile collapse of Garrard County Distilling, a $250 million independent Kentucky distillery that was placed into receivership and shut down in April after defaulting on debt.
And in late 2023, the iconic Kentucky Owl, founded in 1879, also filed for bankruptcy — citing slumping sales and a crippling cyberattack that halted operations.
