Some have called it the beerpocalypse.
Before the Covid pandemic craft brewing was a growing trend. Consumers wanted unique beers,, so they’d buy local brands to bring home and visited brewpubs.
You could argue that many communities simply became oversaturated with breweries and brewpubs. In many ways, it was like the self-serve frozen-yogurt craze.
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When a self-serve frozen-yogurt shop opened in a community, it had lines out the door. Once a second opened, though, it cannibalized the audience of the first one, and when a third opened, there simply was not enough business to go around.
Breweries and brewpubs were always risky business, but for many the Covid pandemic was one hurdle too high. Some had to close their physical locations and many took on debt that they could not repay once they were allowed to reopen.
That has led to the beerpocalypse, which claimed huge names including San Francisco’s Anchor Brewing.
Slower sales due to changing trends and increased debt loads drove many regional favorites including Chicago’s Metropolitan Brewing, New Jersey’s Flying Fish, Denver’s Joyride Brewing, Tampa’s Zydeco Brew Werks, and Cleveland’s Terrestrial Brewing into bankruptcy.
Now, another regional favorite has joined the list of brewpub and brewery brands filing for Chapter 11 bankruptcy.
Brewpubs have always been a challenging business.
Image source: Shutterstock
Brewery worked to support its community
In many ways, Shubrew followed a classic growth arc, from being a brewery and restaurant to a regional beer brand.
“ShuBrew was opened in 2013 by Zachary and Erika Shumaker as a restaurant and brewery on Main Street in downtown Zelienople, Pa.” the website says. “Their vision was to offer the community a selection of beers that they themselves love and food that would elevate the brewery experience.”
ShuBrew has made serving and partnering with local vendors a key part of its mission.
“Our menu is executed in a from-scratch kitchen and brings cuisine influences from all over the world to our small town,” it says. “We partner with local purveyors, suppliers, and farmers daily, enabling seasonal menu changes and food designed to pair perfectly with a pint.”
In 2016, the brewery moved to Harmony, Pa., half an hour northwest of Pittsburgh, and began brewing its beer offsite. The brewpub sells its beer at restaurants, liquor stores and supermarkets across the greater Pittsburgh area.
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The company makes clear, however, that supporting its local community remains at the core of its mission.
“Our business culture, strategy, policies, and overall practices aim to be as sustainable as possible,” the website says. “From giving our spent grains to local farmers to efficiently run, minimum-waste kitchen operations, staff benefits, and contributions to the local community, we strive to work clean and with integrity.”
ShuBrew files Chapter 11 bankruptcy
On March 6 ShuBrew LLC filed for Chapter 11 protection in U.S. Bankruptcy Court for the Western District of Pennsylvania in Pittsburgh. The company reported that it had $100,000 to $500,000 of assets and $500,000 to $1 million in liabilities.
Neither the website nor Shubrew’s Facebook page mentions the Chapter 11 bankruptcy filing. Both also advertise future events and the company appears to be operating normally.
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“The filing indicates 1-49 creditors, and no funds are expected to be available for distribution to unsecured creditors after administrative expenses,” according to a post on X by RK Consultants. “The petition was signed by Zachary Shumaker, the company’s managing member, with legal representation from Brian C. Thompson of Thompson Law Group P.C.”
As of March 7 the brewpub was still taking reservations and takeout orders on its website. It also lists a robust calendar of upcoming events including its weekly Friday fish fry and a St. Patrick’s Day party on March 15.
ShuBrew did not immediately return a request for comment.