Maui Brewing Company has announced that they will shutter the Modern Times brewery in San Diego which they acquired two years ago and move all production to neighboring AleSmith Brewing under a contract basis.
Maui Brewing acquired Modern Times two years ago and that combined entity became Craft ‘Ohana. Maui Brewing CEO and Co-Founder Garrett Marrero explained the reasoning for the new name at the time. “As we combine these two well-respected and innovative breweries, we recognize that it is not our ambition to have two separate entities owned by a common parent company, but rather two brands operating as one company with operations in multiple states. With Craft ‘Ohana, we pay homage to our Hawai’i roots while signaling our stewardship and dedication to the craft beverage movement that has become a staple across bars, restaurants, and retailers throughout America over the last 35-plus years.”
In an article in San Diego Beer News, the last two years since Maui acquired Modern Times were described as “difficult” due to a combination of reasons. I addition to slower sales in the craft beer segment, higher costs of doing business and a hyper-competitive distribution and retail landscape, the Modern Times brewing facility was in “bad shape due to lack of proper maintenance, leading to outages that decreased brewery efficiency.”
The proposed development of the area surrounding the Modern Times brewery was also cited as a reason to shut down brewing operations. The City of San Diego is currently proposing a 48-acre development that will include 4,250 housing units, a 16,000-seat sports arena and a multi-acre central urban park.
Moving to a contract brewing model will reduce margins for ‘Ohana but will also eliminate the high cost of running and maintaining a brewing facility. The move will result in termination of 50 to 60 ‘Ohana employees.
More on the story at San Diego Beer News here.