Molson Coors Closing Milwaukee’s 10th Street Brewery
Company also closing Leinenkugel's historic Chippewa Falls brewery.
10th Street Brewery in 2021. File photo by Jeramey Jannene.
Pour one out for craft beer.
Brewing giant Molson Coors, the parent company of Miller Brewing Company, confirmed Wednesday it will shutter its 10th Street Brewery near downtown Milwaukee and the historic Leinenkugel’s brewery in Chippewa Falls.
The closures are a cost-cutting move for the publicly-traded company, which reported a quarterly net sales decrease of 7.8% and a 39.1% drop in quarterly income to $331 million.
They also come as the brewing giant is about to end a long-time brewing agreement with Pabst.
“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,” said Chief Supply Chain Officer Brian Erhardt in a statement. “While never easy, these choices are made with much thought and consideration to position Molson Coors for continued success in Wisconsin and beyond.”
Molson Coors will continue to make the beers produced in each brewery at its State Street Brewery, the large Milwaukee brewery in the Miller Valley, and other breweries across the country. In a state-subsidized move, Molson Coors made several investments and job relocations to support the brewing and administrative functions at Miller’s historic headquarters. The brewing conglomerate, legally created in 2016, is headquartered in Chicago, but has more than 1,100 employees in the Miller Valley.
The 10th Street Brewery, which looms over Interstate 43 from 1515 N. 10th Street, underwent a $50 million project in 2017 to increase its capacity from 25,000 to 250,000 barrels per year.
A state WARN notice says 34 Milwaukee employees will lose their jobs as part of the closure. The closure is to occur on Jan. 17, 2025.
The plant was originally built in 1986 by the now-defunct G. Heileman Brewing Co., which was seeking to develop a modern brewery for its Blatz brand. Miller acquired the then-shuttered brewery in 1995.
The 10th Street Brewery is half of the name inspiration for the company’s Tenth and Blake craft division. But earlier this year, Molson Coors sold four brands from its portfolio, Hop Valley, Terrapin, Revolver and Atwater, to Tillray Brands. The Saint Archer brand was shuttered in 2022. Molson Coors originally built the division through acquisitions to capitalize on the growth of craft beer, but, industrywide, craft beer is now well into a sustained period of contraction as other beverages types prosper.
Remaining brands in the division include Leinenkugel’s, AC Golden and, the other half of the brand’s name inspiration, Blue Moon. Blue Moon includes the Sandlot Brewery, located inside Coors Field on Blake Street in Denver.
The 10th Street Brewery, located just west of the Hillside public housing complex, presents a large redevelopment opportunity or a turn-key brewery. It includes a warehouse and distribution facility, constructed as part of the 2017 expansion, at 918 W. Somers St. The industrial properties are assessed by the state for a combined $10.2 million.
“Of course, I am saddened by the pending closure, and I am hopeful the disruption in the lives of the people who work there is minimal. I am optimistic the facility will return to brewing beer, just as it did after Heileman stopped brewing Blatz beer on 10th Street,” said Mayor Cavalier Johnson in a statement.
Chippewa Falls Changes
In Chippewa Falls, the 157-year-old brewery will shutter, but the Leinenkugel’s tourist attraction will stay. The adjacent Leinie Lodge and a small, pilot brewery will remain operational.
Miller acquired Leinenkugel’s in 1988. And as those on brewery tours might have noticed, it has gradually shifted more and more production to Milwaukee. The company reports more than 75% currently takes place in Milwaukee.
A state WARN notice says 56 employees will lose their jobs as part of the change.
“I feel for all impacted employees and their families in Chippewa Falls and trust that the Molson Coors leadership will do everything possible to ease their pain during this challenging time,” said Dick Leinenkugel, who retired in 2022, in a statement. The Leinenkugel’s brand is currently led by sixth-generation family member Tony Bugher.
SABMiller created MillerCoors as a joint venture with Molson Coors in 2008 and, in 2016, sold its share of the business to Molson Coors as part of its international-markets-focused merger with Anheuser-Busch InBev.
Pabst’s Role In Changes
Molson Coors has excess production capacity at its brewery due to the impending expiration of a longtime agreement to produce beer for the Pabst Brewing Company. Molson Coors does not own the Pabst family of brands, which includes Schlitz, Blatz and Old Milwaukee, but has served as the company’s primary brewer for more than two decades.
Ending the deal, said Molson Coors executives, would allow the company to produce higher-margin products at its facilities. But the agreement took several years to wind down and involved a high-profile court case.
As announced in 2019, Pabst is moving its production to City Brewing Company, which includes the historic Heileman brewery in La Crosse in its roster. An investment group led by Pabst owner Eugene Kashper acquired City Brewing in 2021.
2017 Brewery Photos
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What a shame! No more “Big Eddy Springs”! I still remember my first Leinie. Monopoly Capitalism is ruining good beer. fortunately, we have excellent local craft beers; unfortunately,they are not union shops.