Fury as Molson Coors shuts historic 157-year-old Midwest brewery… and refuses to sell back to founding family

Fury as Molson Coors shuts historic 157-year-old Midwest brewery… and refuses to sell back to founding family

Molson Coors is closing a 150-year-old brewery today – and bosses have infuriated locals by ignoring an offer from its former owners to save it. 

The iconic Leinenkugel’s brewery in Chippewa Falls, Wisconsin, was bought by Molson Coors in 1988. Popular drinks brewed there include the popular Leinenkugel’s Summer Shandy.

Molson Coors announced in November they would shut it down in January and move production to Milwaukee. That final day came today. 

The 56 workers losing their jobs did their final shifts yesterday and others finished today. 

Just before sunset on Thursday, a small group from Teamsters Local 662 crossed a footbridge to Leinie Lodge – the pub and gift shop on-site –  for an informal farewell gathering with pints and pizza. 

That was despite brothers Jake and Dick Leinenkugel – the sixth generation of the family that founded it in 1867 – trying to keep it alive by buying it back.

The brothers say their proposals have so far been ignored. ‘We would like to restore brewing operations at the Chippewa Falls site,’ Dick Leinenkugel said, expressing hope that Molson Coors will reconsider.

The brothers submitted a formal request to begin negotiations earlier this month but were denied on January 6. 

Leinenkugel’s joined Miller Brewing Company, owned by Molson Coors, in 1988

Brothers Jake and Dick Leinenkugel - the sixth generation of the family that founded the iconic Leinenkugel's brewery in Chippewa Falls, Wisconsin, in 1867 - are trying to buy it back

Brothers Jake and Dick Leinenkugel – the sixth generation of the family that founded the iconic Leinenkugel’s brewery in Chippewa Falls, Wisconsin, in 1867 – are trying to buy it back

Two days later, they reached out again, underscoring their desire to preserve the brewery’s legacy, but as of Wednesday, there’s been no response.

Molson Coors has said it will keep the Leinie Lodge visitor center, gift shop and tiny pilot brewery open – leaving the fate of the larger facility unclear.

If the family succeeds, the brewery would operate as a separate company, potentially introducing a new brand for beer lovers. 

‘That may or may not be brewed under the Leinenkugel’s name,’ Dick Leinenkugel said.

As the brewery prepares to close its doors on today (Friday), the family remains optimistic. 

‘This brewery holds a deep legacy for the Chippewa Valley,’ Dick said. Whether Molson Coors will budge on its decision remains to be seen.

Molson Coors – the second biggest brewing company in the US – said the closure will take place on January 17 next year. 

The company, which also makes Coors Light, Miller Lite and Carling, said the difficult decision came as a consequence of shifting its beer manufacturing to its Milwaukee plant.  

The popular Summer Shandy, a lemonade flavor weiss beer, will still be produced form Milwaukee, and currently sells for around $9.49 per six-pack at the likes of Walgreens and Walmart. 

Molson Coors is closing a 150-year-old brewery - amid a sharp slump in beer sales. The legendary brewery in Chippewa, Wisconsin produces the popular Leinenkugel's Summer Shandy

Molson Coors is closing a 150-year-old brewery – amid a sharp slump in beer sales. The legendary brewery in Chippewa, Wisconsin produces the popular Leinenkugel’s Summer Shandy

How a German immigrant turned Chippewa Falls into beer heaven

Jacob Leinenkugel and his family

 Jacob Leinenkugel and his family

It all started in 1845, when Jacob Leinenkugel left Meckenheim, Germany—where his father was a famous brewer—and set his sights on Chippewa Falls, Wisconsin.

With its rich soil, ideal for growing hops and grains, the logging town was the perfect place for Jacob to open his brewery in 1867. It wasn’t long before the town’s hardworking lumberjacks became loyal fans of his beer! 

After Jacob’s passing, his legacy lived on. Generations of Leinenkugels—his children, grandchildren, great-grandchildren, and even great-great-grandchildren – worked tirelessly to expand the brand. They even teamed up with Wisconsin legends like Ray Scott, the iconic ‘Voice of the Packers,’ for memorable ad campaigns! 

In 1988, the family sold the company to Miller Brewing, but the Leinenkugel spirit endured, with sixth-generation family members still overseeing day-to-day operations.

It’s a story of passion, resilience, and Wisconsin pride – and it all started with one German immigrant and a dream.

It comes after Molson Coors reported tumbling sales last year and CEO Gavin Hattersley made it clear he would make cost-cutting efforts.  

The company suffered a 7.3 percent decline in sales in the second quarter and also raised prices earlier in 2024. 

‘While never easy, these choices are made with much thought and consideration to position Molson Coors for continued success in Wisconsin and beyond,’ Brian Erhardt, Molson Coors’ chief supply chain officer, told Food Dive. 

‘Following the end of a large contract brewing agreement and amid an ongoing canning line investment project at our Milwaukee brewery, we’ve made the decision to close two of our smaller brewing operations in Wisconsin and centralize statewide production at our main site in Milwaukee,’ he explained. 

The decision to shutter the historic brewery will result in 56 job losses. 

Molson Coors is not alone in facing a slow down in beer sales as a result of persistent inflation and consumers put off by price increases. 

AB InBev also shuttered one of their plants in Massachusetts last summer, resulting in around 200 job losses. 

Alcohol brands have suffered as Americans cut back on their drinking following the pandemic lockdowns.    

Dick Leinenkugel stayed on at the brewery after it was bought by Molson Coors. He now wants to buy it back with his brother

Dick Leinenkugel stayed on at the brewery after it was bought by Molson Coors. He now wants to buy it back with his brother

Molson Coors has announced the abrupt closure of its Chippewa, Wisconsin brewery

Molson Coors has announced the abrupt closure of its Chippewa, Wisconsin brewery 

How the brewery looked in 1930

How the brewery looked in 1930

Vintage Wine Estates – the 15th biggest producer in the US – filed for bankruptcy in July, blaming Americans drinking less. 

Weeks later one of the country’s oldest wineries, and an affiliate of Vintage, also filed for bankruptcy, citing similar upheavals. 

Meier’s Winery, which produces more than 30 different wines, shuttered in a blow to the homegrown wine industry.

Founded in 1890, it was Ohio’s oldest and largest winery and even uses Native American grape varieties. 

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