Molson Coors Denies Leinenkugel Family’s Attempt To Buy Closing Brewery
Historic Chippewa Falls brewery set to close this month.
Leinenkugel’s Brewery in Chippewa Falls. Photo by cfalc0n, (CC BY-SA 3.0), via Wikimedia Commons
In an effort to save their family’s brewery in Chippewa Falls, Dick and Jake Leinenkugel tried starting discussions to buy it back from the current owner Molson Coors. That offer was rejected and the 157-year-old Wisconsin institution is still set to close this week.
Leinenkugel’s beer has been synonymous with Chippewa Falls for generations, and has been a cornerstone of the community since its founding in 1867. On Friday, brewing operations in the original tan brick building and the more modern additions will cease.
That decision came in November from Molson Coors, which now owns the Leinenkugel’s name, brand and brewery.
On Wednesday, Jake and Dick Leinenkugel issued a statement saying they are “profoundly saddened by Molson Coors’ decision to close the Chippewa Falls Brewery.”
The brothers said they attempted to start negotiations with the parent company in hopes of saving the facility and the 56 workers affected by the closure.
In an interview with WPR, Dick Leinenkugel said they reached out to the president and CEO of Molson Coors asking to enter into a non-disclosure agreement allowing them to begin discussions about buying back the Chippewa Falls facility.
“And Gavin Hattersley, who’s the president and CEO of Molson and Coors, responded back to me that, ‘At this time, I do not believe it’s prudent to enter into any NDA, as Molson Coors remains fully committed to the Leinenkugel’s brand,'” Leinenkugel said.
On Jan. 8, Leinenkugel said they reached out again offering to have discussions without the non-disclosure agreement.
“There has been no response to that,” Leinenkugel said.
In a statement, Molson Coors Chief Communications Officer Adam Collins said Leinenkugel’s has been an important part of the company for nearly 40 years and that isn’t changing despite the shift away from Chippewa Falls.
“While the decision to move brewing to Milwaukee was a challenging one, we are committed to maintaining a strong presence in Chippewa Falls,” Collins said. “That’s why we’ll continue taking excellent care of our facilities, opening our doors year-round to thousands of guests. Our pilot brewery will continue serving as an innovation hub, and the Leinie Lodge will continue to be a gathering place for locals and out-of-towners to enjoy their favorite beers and one-of-a-kind varieties available only at the Lodge.”
When asked why he and his brother want to buy back the brewery that had been in their family for six generations, Leinenkugel said it’s about the impacted employees, the family’s legacy and the thousands of tourists that have visited the facility for decades.
He said the brothers would even be willing to either brew Leinenkugel specialty beers under contract for Molson Coors or under an entirely different name if the company was willing.
“Certainly there would be job opportunities, possibly for those that have lost their positions to be part of that,” Leinenkugel said. “That would be terrific if we were able to do that. We want to see the brewery operations continue in Chippewa Falls, rather than be mothballed.”
Leinenkugel said none of that can happen without a willing seller.
Leinenkugel says gathering with brewery workers ‘felt like a funeral wake
Last Thursday, Dick and Jake Leinenkugel gathered with current and former employees at the Leinie Lodge, across Duncan Creek from the soon-to-be shuttered facility.
“It was kind of a surreal gathering,” Leinenkugel said. “In one way, it felt like a funeral wake, but in another way, it gave us an opportunity to thank and recognize those that worked at our brewery.”
He said the event was also a way to recognize the support the family has gotten from the broader region.
“We certainly recognize that the community has supported us, and we have supported the community,” Leinenkugel said. “So, not being able to brew beer in Chippewa Falls is very disappointing to us. That’s why Jake and I are very interested in sitting down with Molson Coors to see if there’s something that we can do to restore brewing operations in Chippewa Falls.”
Chippewa Falls Mayor Greg Hoffman told WPR residents he’s talked with are “still in a state of shock or disappointment,” but the news of the brewery’s closure wasn’t a total surprise. He said when he first joined the city council years ago there were 100 workers at the brewery. Over the last four years or so, he said that’s been cut by half.
In 1987, the Leinenkugel’s brand, along with the Chippewa Falls brewery, was sold to Miller Brewing Company, which has since become part of Molson Coors by way of multiple mergers.
In November, a statement from Molson said the decision to close the brewery was part of an ongoing shift of production of Leinie’s brands from Chippewa Falls to Milwaukee.
Although the brewery is closing, Molson Coors has said the Leinie Lodge and the adjacent pilot brewing facility will remain open.
“The thing that I have told people is, no matter what happens, Chippewa (Falls) is still the home of Leinies,” Hoffman said. “This is where it started and where it came from, whether they make it in Milwaukee or Phoenix.”
It’s still a “hard pill to swallow,” Hoffman said.
“We’re still kind of sitting back to see what’s going to happen,” he said.
Leinenkugel brothers interest in buying back historic brewery rejected was originally published by Wisconsin Public Radio.
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