Molson Coors has made the decision to close its brewery in Chippewa, Wisconsin, which is responsible for producing Leinenkugel’s Summer Shandy beer. This closure will unfortunately lead to the loss of approximately 56 jobs.
The company, known for its Coors Light brand, has announced the closure of the 150-year-old factory as part of a strategic shift in its beer manufacturing operations. Production will be relocated to its Milwaukee plant.
Brian Erhardt, Molson Coors’ chief supply chain officer, explained the decision: “Following the conclusion of a major contract brewing agreement and ongoing investments in our canning line at the Milwaukee brewery, we have chosen to consolidate our smaller brewing operations in Wisconsin and focus production at our main facility in Milwaukee. This decision was made after careful consideration to position Molson Coors for future success in Wisconsin and beyond.”
Leinenkugel’s became part of the Miller Brewing Company, which is owned by Molson Coors, in 1988. Erhardt emphasized that the brand will continue to be an integral part of the company’s future plans.
“Since joining Miller Brewing in 1988, Leinenkugel’s and the Chippewa Falls brewery have held a special place in our company and culture. This will not change,” Erhardt stated. “Leinie’s Summer Shandy and our other products will remain key players in our premiumization strategy moving forward.”
This decision comes as Molson Coors reported a decline in beer sales during its August earnings call, with brand volumes decreasing by 7.3% in the last quarter. CEO Gavin Hattersley informed investors that cost-cutting measures would be implemented to offset this decline.
With the beer industry facing challenges due to inflation, other major producers are also adjusting their manufacturing strategies. AB InBev recently closed a distribution center in Massachusetts, resulting in the loss of nearly 200 jobs.