Lightning Brewery changes business model

September 8, 2017 by  

In June, the news came that Lightning Brewery in Poway was going out of business, having sold most of its assets to Cismontane Brewing Company. However, Jim Crute, the brewer for Lighting as well as the company’s founder, says this is not true.

Although the San Diego company is no longer bottling, Lightning will still be selling its brews directly to the public in their tasting room, says Crute.

Lightning agreed to use a distributor to sell their product, and based on that, scaled up their operation and made investments based on the idea that the distributor would greatly increase their sales. The hoped-for increase never happened, and the distributor dropped the brewer without warning.

Crute says the company used a lot of cash reserves to cope with the income it lost when it was suddenly left with surplus inventory. Another distributor did not work out, and Crute put the business up for sale. Cismontane acquired most of the company’s assets, and the money was enough to pay off Lightning’s debt and save the business from foreclosure.

Crute expects to leave his current suite by the end of September, when he will move Lightning to a small tasting room, where his loyal customers will still be able to buy their favorite beer.

Situations like this might benefit if company officials worked with a newsletter printing company on a letter to keep customers updated.

Comments