Beer Marketer's Insights - Rogue Production Facility & Taprooms Abruptly Shuttered as Declines and Unpaid Fees Mounted

Rogue Ales & Spirits suddenly shuttered its operations across its 47K sq-ft facility in Newport, OR as well as all of its taproom outposts, The Lincoln Chronicle reported among many other local news outlets. On the Newport facility alone, the company reportedly owes $545K in rent to the Port of Newport and up to $30K in taxes to Lincoln County, and abruptly announced the closure after meeting with Port of Newport officials Friday morn. Rogue had quietly shuttered its 4,800 sq-ft distillery operation recently too, and "the Port agreed last month to re-lease a portion of" the building to a seafood processor called West Coast Seafood. Its taprooms in Newport, Portland, Astoria and West Salem, OR have also "closed until further notice." Rogue's monthly rent on the main building is reportedly $37K. "All they told us is that they will keep three staff members to help properly shut down the brewery" in Newport, Port of Newport executive director Paula Miranda told Lincoln Chronicle Friday morn. Prior to the shutdown, the production facility employed about 60 people. (This is an excerpt from an article in sibling pub Craft Brew News.) This comes just 3.5 mos after Rogue began partnership with US Beverage to handle sales operations with USB taking on 9 Rogue employees in the process (see Aug 1 issue). Then, prexy Steven Garrett spoke to CBN about "retooling" Rogue for the next 30+ yrs, sounding optimistic about ability to "start scaling again," including a bigger planned push on Dead Guy whiskey and THC/CBD bevs. Unclear at presstime if US Beverage's Uinta Brewing and other contract production partnerships will look to take on Rogue's beer, spirits, CBD and THC bev production going forward.Spread Thin: From 117K Bbls in 2014 to Under 40K Bbls in 2025; "Gradually, Then Suddenly" This announcement appears to have caught a lot of folks off guard and a lot seems to still be in flux amid the closure. Yet while the announcement came abruptly, Rogue's biz challenges have been well documented over the course of the last decade-plus. As one of the older craft brewers in the country, launched in 1988, Rogue rose to 117K bbls in 2014 amid the craft boom, up from just 76K bbls in 2009. Tho unlike most brewers at that time, Rogue had already established its natl footprint, expanding more gradually and owning its status as a poster child for the "mile wide, inch deep" biz model. Back then it was one of the most well-traveled craft brands, relying on home state OR for just 13% of its volume mix. Yet 2014 was its peak volume nationally and sales since cut in more than half, now likely under 40K bbls/yr, CBN estimates. In 2020, Rogue closed its brewpub in the Pearl District of OR followed by closing its tasting room in Independence, OR in 2021, Lincoln Chronicle reminded. Volume's down low-double-digits in natl scans this yr.Net-net, the reported fees owed on rent and taxes in Newport seem to be just the surface. Between the current ownership group, various locations, vendors, lenders and other external pressures, some kind of straw apparently broke the camel's back on Friday. There's no word if there are plans to file for bankruptcy at presstime. But as one astute reader reminded CBN, referencing a famous Ernest Hemingway quote from The Sun Also Rises, when asked how he went bankrupt, the character replied that there were "two ways. Gradually, then suddenly." Despite its dwindling size, Rogue made a name for itself thru its nationwide expansion and craft cred as a trailblazer. Its Maibock-style flagship brew Dead Guy ale and distinct branding with skeleton imagery remains a referential beer for many who entered the space for generations. But these are different times. How might Rogue live on from here?

Rogue Production Facility & Taprooms Abruptly Shuttered as Declines and Unpaid Fees Mounted

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