Beer industry loses millions of dollars with the closure of bars and restaurants

Local News

MCALLEN — The beer industry took a big hit when bars were forced to close losing millions of dollars. Now that bars are allowed to open, beer distributors are finding ways to help businesses get back on their feet.

“Our bar and restaurant business went to zero, overnight,” said Adrian Leal, general manager at Glazer’s Beer & Beverage.  

The bar and restautant closures put a halt to beer distributions according to Leal.

“All of a sudden those orders weren’t coming in and we started thinking about, wait a minute, what are these people going to do with all this beer that’s sitting there,” he said.

With much of that beer inventory going to waste, not only have bars been impacted by the loss of revenue but beer distributors are also feeling those effects.  

“The beer industry in the United States is estimated to lose about $1 Billion dollars in just keg beer alone,” said Leal. “For us that represents probably around a quarter of a million to half a million dollars depending on how it all shakes out.” 

In order to help bars and restaurants, Leal said they are picking up the beer that’s out of date and replacing it for them when they open their doors.

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