Another popular beer brand files Chapter 11 bankruptcy
It's a bad time to be a fan of craft beers as the past year has not been kind to companies that make them.
Before the Covid pandemic, beer was having a moment. It seemed like every city was adding multiple craft brewers and that everyone understood the language of the popular drink.
It wasn't abnormal to find people talking about how their beer was "too hoppy," or "not hoppy enough," but if they didn't like the beer there was probably another brewery a few doors down.
Related: Struggling clothing brand files Chapter 11 bankruptcy
You also did not have to visit a brewery to find interesting beer. Many local breweries found regional distribution and some companies made national deals to bring a variety of beers to liquor stores around the country.
The Covid pandemic, however, hurt the craft beet business a number of ways. First, beer drinkers were stuck at home and brewery/pub crawls were not allowed due to social distancing rules.
Second, the beer boom simply slowed down as some younger drinkers embraced alcohol-free mixology-based drinks, and other beverages simply took some of the market.
"According to data from Beer Marketer's Insights (BMI), U.S. beer shipments were expected to fall to their lowest level in 25 years by the end of 2023 — after dropping more than 5% in the first three quarters of the year," Convenience.org reported.
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The latest beer brand to file for Chapter 11 bankruptcy, however, may not have any of those factors to blame for its bankruptcy. Instead, it appears to be collateral damage caused by its parent company's filing. Image source: Shutterstock
Salt Life is owned by Delta Apparel
Salt Life, which is owned by Delta Apparel, which just filed for Chapter 11 bankruptcy protection is a lifestyle apparel brand built around bathing suits and related wear. The company used the #GetSalty and has a sort of patriotic meets Jimmy Buffett vibe.
Related: Retail brand with 29,000 locations files Chapter 11 bankruptcy
"Our brand originated as a decal and we have sold over 2 million of these to our loyal customers. Today, Salt Life is more than just a logo; it represents a passion for the ocean, the salt air, and most importantly, a way of life. Founded by four watermen from Jacksonville Beach, Fla., Salt Life has captured the attention of many ocean enthusiasts across the world and became one of today’s leading lifestyle brands," the company shared on its website.
The brand isn't just about looking good, it's also designed to be practical and meet the rigors of the ocean.
"Salt Life’s team of avid watermen has helped put Salt Life’s apparel to the test, and it is designed to withstand the harsh environment that comes with the territory of saltwater sports," the company added. "...Whether you’re going offshore fishing for marlin, diving to explore a wreck, or surfing gnarly waves, our distinctive dedication to offer quality products ranging from apparel, performance gear, sunglasses, accessories, and even the ubiquitous decal, we have something for everyone that is living the Salt Life."
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Salt Life also had a beer brand
Salt Life also produced a beer under a separate company. The beer brand's website has been taken down, but descriptions of the beer can be found on the Total Wine website.
"United States, Florida: Salt Life lager is a new interpretation of the classic American lager. Our beer is inspired by those who live the watermen's lifestyle. This is the perfect American lager; crisp, clean, and refreshing," it shared.
Salt Life Beverage LLC filed for bankruptcy on June 30, the same day as Delta Apparel (DLA) , which owns the Salt Life clothing brand. Both companies filed in the District of Delaware.
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The beer brand, in its Chapter 11 filing, said that it has $50 million to $100 million in assets and between $500,000 in liabilities. It also shared that it expected to have to pay unsecured creditors.
Salt Life Beer is a joint venture between Delta Apparel and an "entity owned by Richard Thompson, an original founder of the Salt Life brand, and Greg Tuttle, an award-winning craft brewer," according to a press release.
Delta Apparel was the majority shareholder in the venture and its filing likely forced Salt Life Beverage to file despite its apparently strong financial position.
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