SOMERDALE, NJ – Flying Fish Brewery Company, one of New Jersey’s pioneering craft breweries, has filed for Chapter 11 bankruptcy protection amid substantial financial challenges. The Somerdale-based brewery reported liabilities of $9.3 million against assets of $1.3 million.
The bankruptcy filing on Thursday marks a significant downturn for the company, which saw its revenues decline to $3.1 million in 2023 from $4 million the previous year. This financial strain follows a collapsed merger deal earlier this year with Cape May Brewing, another South Jersey beermaker. The failed merger left Flying Fish struggling to navigate a highly competitive microbrewery market.
Founded in 1996 as a “virtual brewery” by Gene Muller, Flying Fish initially sold its products exclusively online, a pioneering approach before the 2012 legislation that shaped the regulatory framework for microbreweries. Muller, along with partner Andrew Newell, initially established the brewery in Cherry Hill before relocating to Somerdale.
The brewery’s filing for bankruptcy underscores the pressures faced by craft breweries in an increasingly saturated market and highlights the challenges of sustaining growth amidst economic shifts.
Craft brewing sales have been on a slightly downward trend since 2020. The causes of that trend range from a decline in beer drinkers among younger Americans, finances, and health concerns.
“The number one reason why people say they’re drinking less craft [beer] isn’t because they’re watching their waistline or watching their wallet, it’s because they are drinking more of some other type of beverage alcohol,” said Bart Watson, chief economist for the Brewers Association in a recent interview with Forbes.