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Molson Coors announced it will close its Chippewa, Wisconsin brewery, which produces Leinenkugel’s Summer Shandy beer. About 56 jobs will be lost as a result of the closure.
The Coors Light producer announced it will close its 150-year-old plant as it revamps its strategic approach to beer making and moves operations to its Milwaukee plant.
“With the termination of our large contract brewing agreement and ongoing canning line investment project at our Milwaukee brewery, we have decided to close two of our smaller brewing operations in Wisconsin and centralize statewide production at our main site in Milwaukee. Brian Erhardt, chief supply chain officer at Molson Coors, told Food Dive. “While never easy, these choices were made with a lot of thought and consideration to ensure Molson Coors’ continued success in Wisconsin and beyond.”
Leinenkugel first joined Miller Brewing Company, owned by Molson Coors, in 1988. Erhardt said the brand will continue to play an important role in the company’s future.
“Since Leinenkugel joined Miller Brewing in 1988, the brand and Chippewa Falls have been a cherished part of our company and culture. That doesn’t change,” Erhardt said. “Rainies Summer Shandy and the rest of our portfolio will continue to do our part. Premiumization plan.”
The move follows Molson Coors reporting in its August earnings call that beer sales were down and brand volume fell 7.3% last quarter. CEO Gavin Hattersley told investors the company would take cost-cutting measures to offset the downturn.
As the category faces headwinds from ongoing inflation, other beer producers are changing their manufacturing approaches. AB InBev closed its Massachusetts distribution center this fall, resulting in the loss of nearly 200 jobs.
