A note from the founders
2017 was a rough year for CraftX. As with any startup, there is always some degree of uncertainty, but after starting on a high note, a few major issues derailed the company at the end of 2017 and into 2018, and we were not able to recover. It is with great sadness that we have to report that CraftX is shutting down.
When we relaunched in November, we made the choice to move the actual brewing process from the individual breweries to a larger craft brewery in Northern California that had capacity to contract brew. We flew the brewers to this facility to brew their beer to maintain the quality we were used to, and had the beer packaged at this facility. When the first batch of beer was shipped via freight to our warehouse to be labelled, 80% of our beer was lost due to the pallets not having been properly secured and tipping over. Because the pallets were labelled and not the individual cans at this point, it was impossible to tell which cans were which beer, and there was little that could be done to salvage enough beer for all of our customers. We refunded all of the orders we couldn’t fulfill, and fulfilled those we could, but we were stuck waiting for a settlement from the shipping company’s insurance to help make us right again.
As a company, we pushed forward, but beer had already been ordered for all the customers that we had prior to the shipping accident, and most of those customers didn’t come back after we had to refund their first order. This left the company completely cash strapped and waiting on an insurance settlement, with lots of beer, but no money to ship it out. We’ve spent the past month desperately looking for additional capital, but our investors have elected to not further invest, and we’ve been unable to find any new sources of capital.
We will be issuing refunds as quickly as we can to all of our customers. If you’re in Southern California and want to come pick up your beer, please let us know and we’ll find a time to meet you at the warehouse. Please understand that this was a company started by three guys with a dream, and we’ve bled ourselves and our savings dry to try and make it happen.