Fort Collins, Colorado-based Odell Brewing Co. laid off nine staff members last week, about 5% of its workforce.
“With the industry facing unprecedented challenges and our volume falling short of 2022 goals, we made the difficult decision to adjust our staffing to match our 2023 forecasted volume,” Odell CEO Eric Smith told Brewbound via email. “We were able to retain 95% of our workforce, and we remain optimistic that this and other decisions have right sized us for the future. We are focused on the stability of our company and the strength of our teams.”
The nine staff members – who worked “across a number of departments” – were notified at the beginning of last week, Smith said. Each was provided “a severance package plus resources to help them bridge employment gaps and ease the pain of the departure.”
“We are empathetic to the time of the year and how this will impact everyone directly involved,” Smith added.
Odell avoided laying off any staff members during the COVID-19 pandemic, Smith said. The company “performed a comprehensive analysis” of its “non-labor related spending” and made “necessary adjustments” before making the recent layoff decisions.
“This decision was made in order to align our labor structure with our expected revenues, maintain competitive pay and benefit structure for our coworkers, and ensure we can sustain a successful business going forward,” Smith said. “We have no plans to adjust our distribution footprint and will align our priorities within each market to match our overall objectives.”
Prior to the pandemic, Odell produced 132,396 barrels of beer, according to the Brewers Association (BA), making it the 19th largest BA-defined craft brewery by volume. The year was followed by a -3% year-over-year (YoY) decline in 2020 and flat 2021.
With draft business still down “a significant amount” compared to pre-pandemic levels, and “the challenges of a mature industry,” Odell will focus on its home state of Colorado – including its four taprooms – and supporting markets in 2023, Smith said.
Additionally, the company will focus on its core brands with an “outlined” and “smaller” portfolio, including Odell IPA (7% ABV), 90 Shilling amber ale (5.3%), Lagerado lager (5%) and its Sippin’ brand family. It’s a change from the company’s previous expansion beyond beer in 2020, including Allkind Hard Kombucha (which has been discontinued) and canned wines.
Odell operates a brewery in Fort Collins and two brewhouses in Denver as well as the OBC Wine Project Taproom, a 2,000 sq. ft. winery and taproom adjacent to its Fort Collins production facility, opened in May 2021.