Suffolk County’s craft breweries are facing an unprecedented wave of bankruptcies as rising costs and fierce competition create a perfect storm threatening the local beer industry

The craft beer industry across Suffolk County and the broader United States is experiencing a devastating financial crisis in 2025. The number of operating craft breweries declined nationwide to 9,680 in 2024, down from 9,747 in 2023. It was also the fourth consecutive year that the number of new brewery openings declined, with 434 new breweries opening and 501 closing in 2024, according to the Brewers Association.

The Bankruptcy Wave Hitting Local Breweries

The craft brewery bankruptcy trend has accelerated dramatically in 2025. With all of this industry deterioration, it’s no surprise that craft breweries have begun filing for either Chapter 11 or Chapter 7 bankruptcy. Struggling craft beer brand Dissent Craft Brewing has shut down its flagship brewery location in St. Petersburg, Fla., and filed for Chapter 7 bankruptcy liquidation. Similarly, Popular craft brewer Memphis Made Brewing Company filed for Chapter 11 bankruptcy protection to restructure its debts, about a year after closing its original brewery location. The Memphis-based brewing company filed its Subchapter V petition in the U.S. Bankruptcy Court for the Western District of Tennessee on Aug. 7, listing $1 million to $10 million in assets and liabilities.

Even established regional chains aren’t immune. In a reported Thursday email to employees, according to the industry site Breweries in Pennsylvania, Iron Hill leadership said they would file for bankruptcy due to “ongoing financial challenges.” After 29 years of making craft beer, Iron Hill Brewery & Restaurant closed its doors across all locations on September 25, 2025. The chain’s bankruptcy filing forced shutdowns in five states, shocking customers and employees alike.

How Tax Changes and Tariffs Are Crushing Breweries

While federal tax cuts for craft beverages were intended to help small breweries, the reality is more complex. The frequent assertion that the tax cut is for craft brewers and distillers is misleading. For every $20 of alcohol tax cuts in the legislation, only about $1 actually goes to the true craft brewers or small distillers. Most of the revenue—the other $19—goes to larger producers and to importers.

More damaging are the new tariffs affecting raw materials and equipment. You’re talking about a massive increase in cost of goods for every brewer – big, small, medium, distillers, everybody. Williams estimates the price of beer will increase by 3- to 8% if all the tariffs on the table actually come to pass. U.S. craft breweries face growing financial strain as steel, aluminum, barley, and malt tariffs intensify. According to a new report from GlobalData, these trade barriers are inflating costs across the industry — from raw materials to essential brewing equipment.

Rising Operational Costs Squeeze Margins

Operating a craft brewery has been a challenging business over the last 2-1/2 years. Brewery owners have faced several economic issues that have impacted their ability to continue as going concerns, including rising labor and product costs, driven by inflation. Companies have faced rising lease payments and a clientele that is more discriminating with expenditures.

The aluminum can shortage particularly affects smaller breweries. Aluminum is the scariest for us. President and co-founder Dave Thibodeau is worried about the 25% tariff on aluminum scheduled to take effect this week. The U.S. imports about half of its aluminum. Independent brewers get most of their malted barley from Canada because the big corporate brewers have contracts for most American barley. And Canada is also in Trump’s tariff crosshairs.

Competition from Hard Seltzers and RTD Cocktails

Traditional beer sales are declining as consumers shift preferences. According to the Brewers Association, overall beer sales have dropped 5.1% in 2023 to 173,056,732 barrels. Much of that decline can easily be attributed to the growing popularity of ready-to-drink (RTD) cocktails and hard seltzers. Craft breweries have struggled in 2025, as brewery closings outpaced openings, with 9,269 breweries operating in June 2025, down 1%, compared to 9,352 in June 2024, the Brewers Association said in its 2025 Midyear Market Report released on July 23. Craft breweries also had a significant decline in craft beer volume, dropping 5% year-over-year compared to 2024.

When Breweries Need Legal Help

For Suffolk County breweries facing financial distress, understanding bankruptcy options becomes crucial. Businesses also began paying higher interest rates for debt they obtained after the Covid-19 pandemic, making it harder to service existing obligations while managing operational challenges.

When craft breweries can no longer manage their debts, consulting with a qualified Bankruptcy Lawyer Suffolk County becomes essential. The Frank Law Firm P.C. understands the unique challenges facing Long Island businesses, including the craft brewing industry. Our skilled bankruptcy lawyers help clients navigate the complex legal process to achieve financial freedom. At The Frank Law Firm P.C., we understand the stress and emotional turmoil of mounting debt. Our compassionate team has helped numerous individuals and businesses throughout Suffolk County and the surrounding areas in Suffolk County, NY.

Brewery owners facing financial difficulties have several options. Chapter 11 bankruptcy allows businesses to reorganize while continuing operations, potentially saving jobs and maintaining community connections. Primarily for businesses, Chapter 11 bankruptcy allows companies to reorganize their debts while maintaining operations. Our experienced bankruptcy lawyers in Suffolk County can help you develop a feasible repayment plan and negotiate with creditors to secure your business’s future. For breweries that cannot continue operations, Chapter 7 provides an orderly liquidation process.

The Path Forward for Suffolk County Breweries

These added pressures come at a time when the industry is already struggling. For the second consecutive year, more U.S. craft breweries closed than opened, according to the Brewers Association. With operating costs rising and consumer demand plateauing, especially among younger drinkers, many small brewers find themselves at a breaking point.

The combination of tariff-driven cost increases, changing consumer preferences, and ongoing economic pressures creates a challenging environment for Suffolk County’s craft brewing community. We understand that every bankruptcy case is unique. At The Frank Law Firm P.C., we assess your financial situation and develop a customized plan tailored to your specific needs and goals.

For brewery owners considering their options, early intervention can make a significant difference in outcomes. Contact The Frank Law Firm P.C. today at 516-246-5577 to schedule a free, no-obligation consultation with one of our knowledgeable bankruptcy lawyers. We’ll assess your financial situation, discuss your options, and help you take the first step toward a brighter financial future. Whether through debt restructuring, Chapter 11 reorganization, or other legal remedies, experienced legal counsel can help navigate these unprecedented challenges facing Suffolk County’s craft brewing industry.