Categories: Pennsylvania News

Trouble brewing? Questions arise after multiple central Pennsylvania breweries close down

(WHTM) — Questions are being raised about the future of the Pennsylvania brewery industry after two big businesses announced plans to close just over a week apart.

Iron Hill Brewery employees found out they lost their jobs the day of the brewery’s Sept. 25 closure of all locations. A former employee said people were inside the establishment when the closure notice was put on the door.

Iron Hill Brewery owners said in an email sent to employees that they decided to file for bankruptcy.

Additionally, Grateful Goat in Camp Hill announced a few days ago that Sunday, Oct. 12, will be its final day of business. In a Facebook post, Grateful Goat said it is a great move for them to sell the establishment and its real estate.

It’s unclear exactly why breweries are tapping out, but a former bartender at Iron Hill Brewery said smaller breweries tend to have it tough compared to the ones that have a footprint across the country.

“I feel as if the craft brewery market is very saturated, especially in this area, and you have big players like Troges that kind of, you know, are, you know, consistent, not just here but throughout the country,” former bartender and front of house manager at Iron hill Brewery Jordan Portz said. “So that’s really tough for smaller breweries.”

However, Iron Hill Brewery wouldn’t be considered a small brewery; it used to have locations in multiple states. So, Portz said he thinks there was an issue with the company itself.

“Iron Hill is a big brewery as well. I think for them it was less of a brewery issue and just more of a, you know, company issue overall, like production-wise,” Portz explained.

Other central Pennsylvania breweries closed this year, including Appalachian Brewing Company’s location in Harrisburg, Something Wicked in Hanover, Schaylor Brewing Company in Lebanon County, and Hook & Flask Still Works in Carlisle.

House Bill 1702 could boost brewery business by allowing them to store pre-mixed cocktails for longer than 24 hours. It was agreed to with no amendments on Tuesday. The bill could get a final vote in the House as early as Wednesday. If it passes, it will head to the Senate.

The Pennsylvania Food Merchants Association is meeting in Hershey this week. President and CEO Alex Baloga says there have been a lot of industry changes lately.

“I think this is just kind of going along the same lines of trying to modernize the system in Pennsylvania, just six, seven, eight years ago, we got wine in the grocery store, before that, it was beer, last year we got RTDs, the ready-to-drink canned cocktails, so it’s a progression.”

Still, changes like these were not enough to save the shuttered Midstate breweries.

“It was funny because the Tuesday before we closed, my manager went down to our headquarters to salvage some equipment that he could use for our store,” Portz says.

She says many of the employees who lost their jobs have found other work.

“I think people are doing really well,” Portz says. “The community outreach has been really great. People are reaching out to us. A lot of people have gotten back on their feet. It’s not what you know, it’s who you know, and having connections in this industry goes a long way.”

This is a developing story. Stay with abc27 News as more information becomes available

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