Well, you figure Eden (which MC lists as brewing 9m bbl/yr*) might have lost almost a million barrels of production in recent years when Boston Beer dropped it as a contract brewer when BBC bought the Schaefer-built brewery outside of Allentown. But after several years of volume and share declines at both brewers, “it seemed inevitable one of them would close a brewery, and when, not if”, said Eric Shepard, the publication’s executive editor.
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MillerCoors and AB InBev still have USA market shares of 26% and 44%, respectively, according to Beer Marketer’s Insights, a trade publication.
The city makes around $1 million in revenue per year from water used by the plant.
“MillerCoors expanded its Eden plant just four years ago with the addition of about 70,000 square feet of warehousing space, and at that time employed about 600 at the plant”. “This volume loss is due to a variety of factors, including economic challenges, an explosion of choice and fragmentation within the beer business, and a dramatic change in the way consumers engage with brands”.
MillerCoors’ move was triggered by efforts to reduce costs and a distribution overlap and comes as the brewer tries to counter a continued decline in volume.
Job cuts will not begin until 2016, the spokesman said.
“Today we made the hard decision to close our brewery in Eden, N.C., in order to optimize our brewery footprint and streamline operations for greater efficiency across our remaining seven breweries”, said Chief Integrated Supply Chain Officer Fernando Palacios.
Throw in the fact that, with the MillerCoors JV, the Coors built brewery in nearby Elkton, VA also brews MC brands.
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For the small town of Eden, about 35 miles north of Greensboro, the plant closing will have a significant impact, said Eden Mayor Wayne Tuggle.
