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Molson Coors is closing Leinenkugel's Chippewa Falls brewery


Molson Coors is closing Leinenkugel's Chippewa Falls brewery

CHIPPEWA FALLS, Wis. (WEAU) – We've learned that Molson Coors is announcing plans to close Leinenkugel's Brewery in Chippewa Falls, ending more than a century and a half of brewing tradition in northwest Wisconsin.

Former Jacob Leinenkugel Brewing Company President Dick Leinenkugel gave us the following statement on Wednesday:

I am deeply saddened by the Molson Coors leadership team's decision to close our brewery and home in Chippewa Falls. For over 157 years and six generations of family ownership, Leinenkugel's has been brewing great beers for our legions of fans across Wisconsin and the country.

I feel for all affected employees and their families in Chippewa Falls and trust that Molson Coors leadership will do everything possible to ease their pain during this challenging time.

I know that Molson Coors executives do not take these decisions lightly. It is clear to me that they concluded that the savings achieved through closure were significant enough to justify this difficult decision.

None of our family members knew or were advised about the decision. It's a sad day for our family and our fans. In 2017, we gathered in Chippewa Falls to celebrate our brewery's 150th anniversary. It was the defining moment of my career in the beer industry. Together with my brothers Jake and John and members of our fourth, fifth and sixth generations of our family, we proudly toasted our beer drinkers, retail customers and distributors to thank them for their loyalty and support. Today I would like to thank you again on behalf of the Leinenkugel family and will toast them this evening with a Leinenkugel's Original and a tear in my eye.

Molson Coors Chief Supply Chain Officer Brian Erhardt also released a statement regarding the planned closure of Leinenkugel's Chippewa Falls brewery:

Following the end of a large contract brewing contract and as part of an ongoing canning line capital project at our Milwaukee brewery, we have made the decision to close two of our smaller breweries in Wisconsin and centralize nationwide production at our headquarters in Milwaukee. While never easy, these decisions are made with great care and consideration to position Molson Coors for continued success in Wisconsin and beyond.

Since Leinenkugel joined Miller Brewing in 1988, the brand and Chippewa Falls have been a valued part of our company and culture. That doesn't change. Leinie's Summer Shandy and the rest of the portfolio will continue to play a role in our premiumization plans, and Leinie Lodge and the adjacent pilot brewery will remain open year-round for guests to enjoy and experience Leinenkugel's beers and history.

Brian Erhardt also released a note to distributors:

As we transform our portfolio to succeed on the beer shelf and beyond, we must also continually find ways to transform our supply chain. We do this to achieve higher levels of performance, expand our capabilities and maximize our investments so that we can best meet the needs of today's – and tomorrow's – consumers.

This approach has allowed us to reinvigorate and now accelerate our business, but sometimes we also have to make difficult decisions. This is the case today as we have made the very difficult decision to cease operations at both Tenth Street and Leinenkugel's Chippewa Falls breweries, effective January 17, 2025. Production at both facilities will move to the Milwaukee Brewery.

We made the decision to close Tenth Street in Milwaukee in light of the sale of Tenth & Blake Breweries, as production at the facility included 19.2-ounce cans of those brands. We will shift production of 19.2-ounce cans of Blue Moon and other continuing brands to Milwaukee Brewery, made possible by an investment in a canning line at this facility.

In the case of Leinenkugel's, this move follows the gradual relocation of production of Leinie's brands from Chippewa Falls to Milwaukee as the portfolio has grown over the years; Milwaukee already produces more than 75% of Leinenkugel's total volume.

Milwaukee Brewery is now positioned to absorb this additional volume as we exit a long-term contract brewing agreement at year-end, freeing up capacity to brew our own brands. We will inform retailers of any transition plans impacting Leinie's brands.

Since Miller Brewing Company acquired Leinenkugel's in 1988, the brand and Chippewa Falls have been a valued part of our company and culture. That doesn't change. Leinie's Summer Shandy and the rest of the portfolio will continue to play a critical role in our premiumization strategy, and Leinie Lodge and the adjacent pilot brewery will remain open year-round for visitors to enjoy and experience the Leinenkugel's brand. No changes are planned for the barrel yard at American Family Field.

Although these decisions are never easy, they are made with great care and consideration for our company and the employees affected. I would like to thank the Tenth Street and Chippewa Falls brewing teams for their years of commitment to our business. We have started discussions with both wage and salary earners and their respective collective bargaining representatives. We remain committed to dealing with these changes respectfully and providing affected employees with all necessary information and available resources.

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