Celis Financial Woes

@SunDevilBeer, the original Grand Cru was also my favorite Celis beer back in the day, and IMO the resurrected version of it that I had earlier this year was not the same quality that I remember. It was too sweet and rich, and difficult to drink more than one (not a problem with the original one). But I know that you would have liked to decide this for yourself, and, yes, a shame that this didn't work out like Celis planned.

 

Thanks for letting me know that I wasn’t missing out on much.

About 5-6 years ago I had the contract-brewed version at a random bar in the Boston ‘burbs that was shipped a few cases. I really enjoyed it, but after that drop (I must’ve drank half of it) , it never appeared again.

 

It's interesting to read that article and see how optimistic Atwater's projections were. I don't know what their current production stats are, but this article stated that they were looking to get to 50K barrels in 2018, a pretty steep falloff from what the owner predicted in 2014.

As for what happened with the Austin deal? Well, they've been rumored to be looking to open places in Chicago, Boston, and North Carolina, but none of those seemed to have panned out either. If anything, it seems like they got blindsided by the shift to local beers. Good for them, I guess, that they didn't dig themselves into a hole by expanding.

 

Blind sided by two things I think. First there is the shift to local as you suggest, and second there is the overall decline in annual sales growth for craft beer. I'd bet the 2014 prediction was based, at least in part, on the 9-10 year history of double digit increases in annual sales for the craft in general.

https://www.brewersassociation.org/...sociation-announces-2013-craft-brewer-growth/

 

Celis supposedly described his US beer as the original Hoegaarden recipe. The implication is that the beer called Hoegaarden had drifted over the years due to Celis himself and then by the hand of (what is now) AB InBev. The thing is, Hoegaarden itself is also marketed as "the original" witbier and their story claims that the beer dates back to the 15th century and that Celis wanted to "preserve the original recipe" when he went into action in the '60s... or at the least - Hoegaarden was "inspired by" the beer from centuries past. The combined path of logic could mean that Celis' US beer was what was brewed centuries ago. Of course, this isn't the case, and one shouldn't expect too much validity behind (nor cohesion with) the various marketing that's designed to sell the beers. Before Celis, witbier was supposedly very acidic. People today make comparisons to young lambic. There are conflicting stories about the use of spices. Some claim the spices were there from the monks in the beginning and had ties to gruit. Others claim this started with Celis. @jesskidden - please correct me if I'm making any stupid mistakes.

 

Well not looking to good, @aschwab posted this on twitter today. I could only find one other reference on the internet, but it is a paid site

 

All I have gotten is that they were $10mm+ in debt earlier this year. Nothing from Celis themselves, just information handed to me after this tweet went out.

Not looking good.

 

Here's BREWBOUND's story on the situation:
Celis Brewery to be Sold at Public Auction on July 2

 

I think it's pretty much safe to say that Celis is cursed.

 

Cursed? Or just bad financially? I don't understand how anyone would take out that much money to start a brewery. Granted, I am curious how much they spent just to buy their name back.

 

I said that same thing earlier in the thread. More just being funny/poetic but it sort of still rings true.

 

From the local business publication in Austin, quoting Forbes:

Not sure a dollar figure was ever revealed after the auction but it was a pretty confusing situation, with the importer, Total Beverage Solutions, briefly owning the brand and having it contract-brewed at Two Roads in CT.
A sort of chronology of the confusing events can be found in the BA thread - https://www.beeradvocate.com/community/threads/celis-brand-back-to-texas-and-celis-family.25051/

 

As expected:
Celis Brewery Files for Bankruptcy, Foreclosure Auction Canceled

 

Wow per their FB page everything seems running according to normal with numerous events & parties scheduled, including a USWNT watch party today & a 2 year anniversary party next week. Not really the austerity creditors & possible investors would be looking for.

Perhaps they just did this to throw a few more parties & shut the place down? Their credit lines are shot with suppliers & the bigger finance guys won’t put up with it for long - nor the bankruptcy judge.

Just a sad situation, I wanted to see this succeed.

 

Sad story. Thanks for posting!

The lesson continually seems to be: brewing beer isn't a great get-rich-quick scheme. For every Wicked Weed and Karbach there's at least a couple Celises, right?

These stories always make me think of Lone Pint. They brewed a huge hit IPA in Yellow Rose but didn't try to cash in fast, and I'm convinced that's why they're still around brewing good stuff.

 

Lesson just seems to be, keep things small, manageable and profitable.

 

Chapter 11 is not Bankruptcy under the conventional understanding of the term. It is a process where the business continues to operate as normal with debt reorganization done under the Court's protection with the guidance of a Court appointed Trustee.

 

Yes and rolling over and playing dead doesn't pay bills. Honestly want to see them succeed, but I haven't seen any fresh beer from them in Houston in several months.