Beloved local brewery Fair State Brewing Cooperative filed for Chapter 11 bankruptcy protection this week, citing pandemic impacts as the primary cause of its financial troubles.
Long-Standing Minneapolis Establishment
Fair State first opened its doors in Minneapolis in 2014 and has since become a staple gathering spot in the Northeast neighborhood. The cooperatively owned brewery was also one of the first craft breweries in the country to unionize its workers in 2020.
While Fair State has developed a strong local following over the past decade, its business model has faced immense challenges over the last few years.
Pandemic Dealt Severe Financial Blow
According to Fair State CEO and founder Evan Sallee, the COVID-19 pandemic delivered a crushing financial blow to the company.
Lockdowns and changes in consumer behavior led to a 20-25% drop in taproom revenue that never fully recovered. Distribution revenue fell by 35% as bars and restaurants across Minneapolis shut down.
Supply chain disruptions also added costs and made key supplies hard to come by.