Molson Coors has declined an offer from Dick and Jake Leinenkugel to repurchase the historic brewery in Chippewa Falls, Wisconsin, which has been part of the Leinenkugel family legacy for six generations. Brewing operations at the 157-year-old site, which has been producing Leinenkugel’s beers since 1867, are set to cease this week (inside.beer, 06.11.2024).
The Leinenkugel brothers had hoped to negotiate a buyback with Molson Coors, which acquired the brewery in 1987 through its predecessor Miller Brewing. Despite their attempts to initiate discussions, including a proposal without a non-disclosure agreement, CEO Gavin Hattersley stated that Molson Coors is fully committed to the Leinenkugel’s brand and does not believe a sale is prudent at this time.
In a statement, Molson Coors emphasized its plans to maintain a presence in Chippewa Falls, with the Leinie Lodge and an adjacent pilot brewing facility continuing operations. However, production of Leinenkugel’s Summer Shandy and other beers will move to Milwaukee, resulting in the loss of 56 jobs at the Chippewa Falls facility.
The Leinenkugel brothers have expressed their profound disappointment with the decision, emphasizing the brewery’s importance to their family legacy, the local community, and the thousands of tourists who visit annually. They proposed brewing specialty beers under contract for Molson Coors or even creating a new brand to preserve operations and jobs in Chippewa Falls. However, without a willing seller, their efforts cannot proceed.
The brewery’s closure is part of a broader trend as major beverage companies like Molson Coors adjust production to align with changing consumer habits. While Molson Coors maintains that Chippewa Falls will remain the symbolic home of Leinenkugel’s, local officials and residents have expressed disappointment, describing the closure as a “hard pill to swallow.”