Bay Area craft beer pioneer 21st Amendment to close both San Francisco brewpub and San Leandro production facility by November
In a stunning turn of events that is sure to shake the craft beer industry, 21st Amendment Brewery has announced it will permanently cease operations after 25 years in business. The San Francisco-born brewery, known for iconic beers like Hell or High Watermelon Wheat and Brew Free! or Die IPA, will shutter both its original Second Street brewpub near Oracle Park and its massive San Leandro production facility by early November.
The closure comes just one week after co-founders Shaun O’Sullivan and Nico Freccia announced they were stepping back from daily operations to bring in a new CEO as part of an ambitious partnership aimed at diversifying beyond beer production. Those plans collapsed when the brewery’s financial lender withdrew support, citing the company’s ongoing “cash bleed” and beer industry-wide downturn.
“The brewery’s lender informed them that it would no longer fund the company due to its ‘cash bleed,’ prompting the decision to close.”
Rough Waters
21st Amendment’s demise reflects a confluence of factors hammering craft breweries nationwide. Sales have dropped approximately 20% every year since 2021, according to co-founder Freccia, who spoke with multiple media outlets about the closure. T
The brewery, which ranked among the nation’s top 50 craft producers by volume from 2016 to 2019, has struggled to maintain relevance as consumer preferences shift toward hard seltzers, ready-to-drink cocktails, and lower-alcohol alternatives.
The COVID-19 pandemic proved particularly devastating for 21st Amendment. Distribution partnerships dissolved, including a key relationship with Brooklyn Brewery that had enabled national expansion. A dispute with a can supplier further constrained operations, forcing the brewery onto allocation-only basis for shipping. Meanwhile, the San Francisco brewpub has operated at just 40% of pre-pandemic capacity.
The 95.000 square foot San Leandro facility opened in 2015 in a former Kellogg’s cereal factory, at a time when craft beer was growing double digits annually.
The Legacy
Founded in 2000 during San Francisco’s dot-com boom, 21st Amendment helped pioneer the craft-beer-in-cans movement that would later sweep the industry. The brewery’s Second Street location, positioned strategically near what was then the new Pac Bell Park, became a watering hole for Giants fans and beer fans alike.
The San Leandro expansion represented 21st Amendments growing ambitions, with capacity to produce more than 375,000 barrels annually and room to even double that. At its peak, 21st Amendment ranked as the 26th largest craft brewery in the country by volume, per the Brewers Association.
Will There Be A Savior?
The founders remain hopeful that a buyer will emerge to continue 21st Amendment into the future. The brewery is actively seeking purchasers for either the brand, the facilities, or both. However, recent history suggests such rescues are increasingly rare in the current market environment – especially using Anchor Brewing that hasn’t found a sustainable paths forward after ownership changes.
The San Francisco brewpub is expected to close first, possibly as early as September 28 to coincide with the Giants’ final regular season home game. The San Leandro facility will wind down production over the next 60 days, with November 4 marked as the official closure date.
21st Amendment’s closure represents another significant loss for San Francisco’s once-thriving craft beer scene, joining recent casualties including Anchor Brewing, City Beer Store, and Sunset Reservoir Brewing Company. For an industry that once seemed unstoppable, the shuttering of such a prominent player serves as a sobering reminder of how dramatically the landscape has shifted in just a few short years.
