After a decade of operations, Due South Brewing Co. in Boynton Beach, Florida, will permanently close its taproom December 19 and cease distribution of its offerings later this year.
The craft brewery — known for its Caramel Cream Ale — made the announcement Friday, citing the end of its current lease and challenges related to the COVID-19 pandemic.
Due South’s production equipment and intellectual property, including brands and recipes, will go up for sale and, if unsold, will be auctioned in December.
“[W]e’re hopeful we will find another brewery to continue making the Due South beers you have faithfully supported for these 10 years,” the company said.
Due South founder Mike Halker called the impact of the pandemic on the industry over the last 18 months “devastating,” according to a press release. With the brewery’s lease coming due for renewal — and a rent increase on the horizon — it “made this the right decision for us at this time,” he said.
In an interview with WPTV, Halker said Due South’s rent would be increasing “a good bit” as the company’s landlord said the market rate for the property was much higher than what they had been paying.
“I can’t put us in a position where we lose everything,” Halker told the TV station.
Halker also described the difficulties of shutting down operations and reopening, only to close again during the pandemic. Even with the on-premise channel reopened, Halker said the company’s numbers haven’t rebounded to where they were four or five years ago, with no indication that business is about to turn around.
Due South was open about its struggles throughout the pandemic. In a June 2020 press release, the company wrote:
“Revenues are down. The cost of doing business has gone up. All that makes the decisions small businesses are facing especially difficult. Due South Brewing in Boynton Beach, Florida has scheduled a supervised disposal with state officials. On the agenda? Dumping an estimated $41,000 of beer. Fresh beer is what local breweries are all about and with the events surrounding the COVID-19 pandemic, the only way to maintain standards is to dispose of old product and start again.”
Due South plans to vacate its premises in February 2022.