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16 January 2025

Daily Newsletter

16 January 2025

Leinenkugel family still looking to acquire Chippewa Falls brewery from Molson Coors

Molson Coors has reportedly rejected the Leinenkugel family's proposal to pursue an NDA.

Fiona Holland January 16 2025

The Leinenkugel family has indicated it is still interested in acquiring the Chippewa Falls brewery from Molson Coors, despite the latter having allegedly rejected these efforts.

The US beer major announced plans to close the Chippewa Falls site in November. An additional facility in Milwaukee was also due to shut its doors.

Chippewa Falls was the original brewery founded by Jacob Leinenkugel in 1867. The Leinenkugel's brand was snapped up by Miller Brewing, a precursor to Molson Coors, in 1988.

In a post on LinkedIn yesterday (15 January), brothers Dick and Jake Leinenkugel said that they had already shared a proposal with Molson Coors requesting that they enter a Non Disclosure Agreement (NDA).

"This would allow us to begin discussions on acquiring the Chippewa Falls brewery, with the goal of maintaining its operations under Leinenkugel family leadership", the Leinenkugels said.

Molson Coors reportedly rejected this offer on 6 January, according to the brothers, with CEO Gavin Hattersley having said that the company was "fully committed to the Leinenkugel’s brand." 

The response was unsatisfactory for the Leinenkugels, who said: "While we appreciate Gavin’s affirmation of the brand’s importance, we believe that true commitment must include preserving the Chippewa Falls brewery and the livelihoods of those who depend on it."

Following up on the initial rejection, the brothers told Hattersley their "long-standing relationship over the past 23 years could serve as the foundation for an open and transparent conversation, even without an NDA", and that they were still ready "to discuss acquiring the brewery’s assets and preserving its operations in Chippewa Falls".

While no response has been received by the family so far, the brothers said they were "optimistic that Molson Coors’ leadership will reconsider our proposal and engage in meaningful discussions about safeguarding this important part of our heritage".

In a statement sent to Just Drinks, Molson Coors' chief communications officer Adam Collins said: "With its rich history and incredible lineup of beers Leinenkugel’s has been an important part of our company for nearly 40 years and that's not changing. 

"While the decision to move brewing to Milwaukee was a challenging one, we are committed to maintaining a strong presence in Chippewa Falls. That's why we'll continue taking excellent care of our facilities, opening our doors year-round to thousands of guests."

The group's "pilot brewery" in Chippewa falls "will continue serving as an innovation hub," Collins added, while "the Leinie Lodge will continue to be a gathering place for locals and out-of-towners to enjoy their favorite beers and one-of-a-kind varieties available only at the Lodge". 

When the brewery closures were announced last year, Brian Ernhardt, Molson Coors’ chief supply chain officer, said the decision had been made: “Following the end of a large contract brewing agreement and amid an ongoing canning line investment project at our Milwaukee brewery”.

Both the Chippewa Falls and Milwaukee sites were due to close on 17 January, impacting 90 jobs.

Production of Leinenkugel’s portfolio, which includes its Summer Shandy and Honey Weiss beers, was expected to move to a larger brewery Molson Coors has in Milwaukee to “centralise statewide production”, Ernhardt said.

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