Half of microbreweries bankrupt in Tijuana during recent years

SAN DIEGO (Border Report) — Half of the microbreweries in Tijuana have gone bankrupt in last seven years, according to Sergio Michelle Marín, president of Tijuana Brewers Association.

He said that back in 2018, there were 60 small breweries producing distinct beer, now there are only 30.

Of those still in operation, only 18 are actually producing beer on a consistent basis, with the others only brewing for special occasions or for specific clients.

“Every year, there are brewers who can’t do it anymore, most of the people involved in this industry are those who are dedicated 100 percent to their craft, it’s more than a hobby it’s not just an alternate project,” said Michelle Marín.

“The disappearance of artisanal breweries is due to many factors such as the high cost of equipment required to make the beer, transportation and distribution costs,” said Michelle Marín. “Over the last two years, supplies and ingredients have gone up by 6 to 8 percent due to inflation, but other expenses have gone up by up to 10 percent.”

Michelle Marín admitted there was an overabundance of microbreweries initially in the city and the demand for the specialty beer market didn’t grow.

“It was stagnant and companies started merging with the bigger brewers, the market became saturated,” he said.

Another factor, according to him, a federal excise tax levied against beer producers has also played a role in the demise of many microbreweries.

“The tax has a big impact, it’s 26.5 percent of operating expenses, it’s one of the biggest fees we have, it prevents us from producing a product that can be sold for lower prices than what we would want,” Michelle Marín said.