USA, OR: Culmination Brewing to close its doors on February 15

The craft beer industry is experiencing significant upheaval, with several popular establishments shutting down due to financial struggles and increased competition. Notably, Culmination Brewing, a northeast Portland brewery, is slated to close its doors on February 15, 2025, after major financial troubles and unfulfilled obligations to bondholders, The Pinnacle Gazette reported on February 1.

Tomas Sluiter, the founder of Culmination Brewing, initially announced the brewery's pending closure back in August 2023. Sluiter expressed concerns about being forced out of his CEO role by majority shareholders who brought in media personality Steven Shomler to spearhead efforts to save the brewery. Shomler began promoting the hashtag #abreweryworthsaving, hoping to galvanize support and investors to keep the establishment afloat. Despite this endeavor, the brewery's efforts to survive may be too little too late.

After 18 months of tumultuous operations, Culmination Brewing’s fortunes worsened, leading to its current closure. The brewery had initially raised $400,000 from 252 investors via the SMBX crowdfunding platform, allowing it to upgrade equipment and operations. Unfortunately, the expenses proved overwhelming, and the promised dividends never materialized, culminating in the platform's decision to send the brewery to collections.

By December 2024, frustrated bondholders reported having not received payments since February 2024, prompting mistrust and dissatisfaction. One investor lamented, “I was twice told by SMBX...that bond payments might resume, and they haven’t.” The uncertainty surrounding the brewery's finances and Shomler's lack of transparency exacerbated tensions with investors who felt neglected amid his self-promotional tactics. Despite claims of progress and recovery from Shomler, many bondholders felt strung along without clear communication about their investments.

Meanwhile, as Culmination Brewing's closure looms, the Ontario-based beer retail chain is also grappling with challenges posed by government policy changes. The Beer Store, once the monopoly for beer sales across the province, has seen 23 of its locations shutter since May 2024 and faces potential extinction as competition rises. According to John Nock, President of UFCW, the union representing Beer Store workers, the closures stem from new regulations allowing alcohol to be sold at convenience stores and grocery outlets, which has fundamentally altered the retail beer market.

Despite the Beer Store's attempts to adapt, including proposing the sale of non-beer items to increase revenue, the rapidly changing market is causing concern for the store's future. Nock remarked, "This is definitely a direct cause of the beer market being opened up." He also noted the threat of larger-scale closures beyond the current 23 if no protective agreements—like the mandate to maintain at least 300 open stores until 2025—are reached.

This shift has not only impacted the Beer Store but also local craft breweries. Founders from notable establishments like Left Field and Blood Brothers voiced their fears over the impending challenges posed by larger foreign brewers capitalizing on the market expansion. They mentioned how their revenue streams from bottle shops are now threatened by increased competition from corner stores, many of which show no interest in showcasing craft beer.

Adding to the woes of the craft beer community, Five Roads Brewing announced the closure of its Steveston taproom effective January 31, 2025. After over four years of dedication to service and community bonding, the operators cited unsustainable conditions facing British Columbia's food and beverage industries. “The conditions facing B.C. restaurants and breweries...created a situation where, without exceptional products and experiences, it is still unsustainable,” they stated during the announcement.

The Richmond taproom opened just two years ago, but its closure reflects the overall fatigue within the sector. Five Roads reiterated its commitment to remaining present within the Richmond community by hinting at future developments, even as the physical taproom shuts down. They expressed gratitude for the support received over the years but highlighted the untenable challenges faced by food and beverage businesses.

These closures, including those of established beer retailers and breweries, shed light on the precarious position of the craft beer industry amid economic pressures and increasingly competitive landscapes. While local breweries have historically enjoyed the support of tight-knit communities, the rapid influx of competition and shifting consumer habits may soon redefine how beer aficionados experience their favorite brews.

With these developments, one thing is certain: the craft beer scene, characterized by innovation and community ties, faces unprecedented challenges. Whether businesses can pivot or adapt to the changing dynamics will determine the future viability of craft breweries across the nation.

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