Craft Beer Storm Clouds – Green Flash Closes Its East Coast Brewery

flash, Craft Beer Storm Clouds – Green Flash Closes Its East Coast Brewery

Green Flash Virginia Beach

Yesterday Green Flash Brewing announced that it was closing their East Coast brewery in Virginia Beach, yet another sign that the craft beer’s landscape has changed profoundly. 2018 is already shaping up to be a tumultuous period for the craft beer biz and we expect that it’s only the beginning.

What with more breweries online than ever before, and craft beer’s seemingly unstoppable double-digit growth having slowed to 6 percent, industry watchers are now wondering if (or when) the industry might be reaching the dreaded saturation point) and Green Flash’s strategic retrenchment only adds fuel to that speculative fire.flash, Craft Beer Storm Clouds – Green Flash Closes Its East Coast Brewery

Open but 16 months, Green Flash spent a cool $20 million on their 58,000-square-foot brewery and taproom part of the company’s 50-state distribution strategy that was designed to service its fans east of the Mississippi River.

But the expense and complexity of running a bi-coastal operation in the face of craft beer’s unexpectedly slowing momentum, not to mention the growing number of consumers abandoning major producers in favor of uber-local craft brewers, clearly proved too costly for the Mira Mesa-based company.

This from Green Flash co-founder and CEO Mike Hinkley…

“We have faced a host of significant challenges since expanding our operations to the East Coast and, though a rewarding endeavor in many ways, we feel this course-correction is prudent at this time and will ensure the independence, fiscal viability, identity and quality of the Green Flash and Alpine brands,”

“That said, I am deeply saddened to close our Virginia Beach facility and say good-bye to 36 employees who worked hard to make our amazing brewery, tasting room and beer garden a special place. I hope another brewery will move in and operate this wonderful facility with and for the people of Virginia Beach.”

Distribution of Green Flash and Alpine Beer, (a boutique brand they acquired in 2014) to all East Coast markets is also being discontinued, resulting in the elimination of seven sales positions,  those on top of the 36 employees who worked at the Virginia Beach brewery and tasting room.

flash, Craft Beer Storm Clouds – Green Flash Closes Its East Coast Brewery In January Green Flash cut its national distribution footprint back by 33 states a move that only foreshadowed yesterday’s announcement. And now Green Flash’s once 50 state reach has been reduced to California, Arizona, Nevada, Colorado, Utah, Texas, Nebraska and Hawaii.

But in spite of Green Flash Brewing’s significant pull-back, plans to open the Green Flash Brewhouse & Eatery in Lincoln, Nebraska are still going forward. And that much smaller brewing operation will serve as a hub for the state of Nebraska.

So welcome to 2018 beer lovers…And we suggest that everybody keep their seatbelts fastened.

Because if Green Flash’s moves this week tell us anything…it’s that things could get increasingly dicey for the craft beer industry this year.

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