15 Jan Green Flash Brewing Halts Distribution to Indiana and 32 Other States
By Indiana On Tap Editorial Staff
As first reported by Justin Kendall on Brewbound, Green Flash Brewing is in the midst of a significant reduction in distribution and work force. The San Diego brewery was founded in 2002 and quickly built distribution into all 50 states, but is now contracting in the face of flat sales and lower than expected regional growth.
photo credit: Eater San Diego
Green Flash distribution ceased in 33 states last week, including Indiana and other Midwest states, although Ohio will still receive beer for sale. The seventeen remaining states are clustered in the west and the southern east coast, as this latter area has been the single largest region for Green Flash growth in recent years according to co-founder Mike Hinkley. The Virginia Beach production brewery will service those areas in the east, while western states will receive beer from the original San Diego facility.
The reduction in workforce of 15% is equal to 33 workers across all facets of the company, while the decreased sales will amount to 18% of the total wholesale volume for Green Flash. In 2016, Green Flash was the 37th largest craft brewery in the country, but sales for 2017 were no better than those in 2016. This in and of itself was not the reason for the contraction, but did play a role. Hinkley said that they were, “Looking to be strong for the long haul.”
While the change in distribution plan, reduction in force, and halt of production and sales of bombers will save money, Green Flash is not abandoning growth completely. The new plan is to open small brewpubs in markets with a less advanced craft beer community, such as the one they will open in Lincoln, NE this summer. Reduced competition in cities such as Lincoln is hoped to improved Green Flash’s market share amongst all brewers in that region. If successful, several more brewpubs could be in the works for the coming years.
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