Anheuser-Busch Closes 3 Plants: Impact on Baldwinsville’s Major Brewery
Anheuser-Busch, the world’s leading beer manufacturer, announced the closure of three U.S. breweries. This decision is expected to significantly impact its brewery near Baldwinsville, New York, which will remain operational.
Closure of U.S. Breweries
This week, Anheuser-Busch confirmed that it will shut down its facilities in Newark, New Jersey, Fairfield, California, and Merrimack, New Hampshire by early 2026. The Newark brewery will be sold to the Goodman Group, which plans to convert it for industrial and logistics purposes.
Shifting Production
The company will transfer production from the closing sites to its other breweries across the U.S. This strategy aims to streamline operations and enhance investment in its remaining facilities, particularly in brands showing growth potential.
Impact on Employment
- The closing breweries currently employ approximately 475 full-time staff.
- Anheuser-Busch assures all affected employees will be offered positions within its other U.S. breweries.
- Relocation stipends and skills training will be provided to employees transitioning to new roles.
Baldwinsville Brewery Advantages
The brewery located in Baldwinsville, a suburb of Syracuse, stands to gain from this shift. It is the largest brewery in New York, employing around 500 people. The facility is strategically positioned, being the nearest to both Merrimack (298 miles) and Newark (262 miles), making it well-suited to absorb the additional business.
Investment in Brewery Operations
Anheuser-Busch has invested nearly $2 billion in its U.S. facilities over the past five years. This includes a recent $90 million upgrade to the Baldwinsville brewery. Earlier this year, a $9 million investment was specifically reported, aimed at expanding its capacity for non-beer products.
New Product Lines
The Baldwinsville facility has also launched innovative products, including the Bud Light Hard Seltzer line in 2021. This brewery has established a niche in the rapidly growing segment of alcoholic beverages, such as NÜTRL Vodka Seltzer and Skimmers Vodka Iced Tea.
Financial Overview
In the context of a challenging market, Anheuser-Busch is adjusting its operations to enhance profitability. In the third quarter of this year, the company reported a profit of $1.05 billion on revenues of $15.13 billion. This reflects a decline from the previous year’s profit of $2.07 billion on slightly higher revenues of $15.05 billion.
The adjustments within Anheuser-Busch underscore the evolving beer market dynamics and the company’s efforts to adapt in order to remain competitive.