Lagunitas Brewing is relocating its Chicago brewing operations to Petaluma, California, though it will keep its Chicago warehouse operational.
This transition includes the closure of the Chicago taproom in Douglas Park. According to the company, this move is driven by the need to future-proof the organization amidst the evolving craft beverage industry. The relocation aims to create a more efficient and flexible supply chain, enhance innovation, and accelerate sustainable brewing practices.
The brand announced on Instagram:
According to Crain’s Chicago, the shift to Petaluma, where Lagunitas’ original brewing operations are based, is expected to be completed by August. The move will affect 86 employees, some of whom will relocate to Petaluma or continue with remote roles. Those not relocating will receive retention incentives, departure packages, support services, and job-placement assistance.
Lagunitas emphasized that Chicago remains a key market, and the company will continue to supply local bars, restaurants, and stores with its hop-forward IPAs and other brews.
The Chicago brewery at 2607 W. 17th St. has been pivotal for serving customers east of the Mississippi River. The Chicago taproom, which opened in 2014, had been closed during the pandemic and only reopened in March 2023 to protect the facility’s bottling operations.
Lagunitas was founded in Northern California in 1993 and was acquired by Heineken in 2017. The company’s decision comes amidst broader challenges in the Illinois craft brewing industry, where 10% of breweries closed permanently in 2022 and 2023 due to changing consumer habits and financial pressures from the pandemic.
Illinois currently has around 280 craft breweries, but, according to Crain’s, many are struggling as taproom traffic remains below pre-pandemic levels and consumers shift towards wine, spirits, canned cocktails, and non-alcoholic options.
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