Hoplark files Chapter 7 bankruptcy as Americans drink less, after raising more than $25 million, watching sales crash from $9.3 million to about $630,000, and threatening to sue Brooklyn Brewery, which says it can keep making the drinks anyway

Americans are drinking less alcohol.

“2025 marked another challenging year for the U.S. Beverage Alcohol industry, with total off-premise dollar sales declining 3.4% to $110 billion, driven by broad-based volume softness across Beer, Wine, and Spirits. While inflationary pressures eased versus prior years, consumers remained highly value-conscious, moderating consumption and prioritizing fewer but more intentional purchase occasions,” according to data from NielsenIQ.

That broader shift toward alcohol-free and moderation-oriented beverages should have created an opportunity for Hoplark, a company that makes sparkling teas, tea and juice blends, sparkling waters, and alcohol-free beverage options.

Those are categories that have grown.

“At the same time, non-alcohol beer, wine, and spirits surpassed $1 billion in sales, signaling moderation as a complement, not a replacement, to alcohol consumption,” NielsenIQ added.

In addition, nonalcoholic beer, wine, and spirits generated $925 million in off-premise sales, up 21.9% vs. a year ago. These products now represent 0.8% of total alcohol sales, the same report showed.

It’s a robust market, but not a strong enough one to keep Hoplark from filing Chapter 7 bankruptcy.

Hoplark files Chapter 7 bankruptcy

“Sparkling water, tea and alcohol-free beverage brand Hoplark’s parent company has filed for Chapter 7 bankruptcy liquidation and teased a ‘potential lawsuit against Brooklyn Brewery,’ alleging the New York craft brewery violated a licensing agreement and its fiduciary duties,” Brewbound reported.

Brooklyn Brewery invested in Hoplark and became a distribution partner in 2023. That was something Brooklyn Brewery CEO Eric Ottoway was very excited about at the time.

“The true attraction here goes way beyond just sales and logistics. We are captivated by Hoplark’s novel technological approach to hops. Their willingness to challenge established practices and think outside the box is extremely evident. They have crafted a unique brand narrative around using hops in a ‘triple zero’ concept — no alcohol, calories, or sugar — that is unparalleled in the beverage industry,” he said in a press release at the time.

More Brewery Closures:

• Another beloved beer brand files for Chapter 11 bankruptcy
• Another popular brewery files Chapter 7 bankruptcy
• Popular beer brand abruptly closes, liquidates everything

Now that relationship has broken down, and Hoplark suggested in the Chapter 7 filing that it will sue its former partner, while Brooklyn Brewery has said it can still brew Hoplark products, despite the bankruptcy liquidation.

“The Boulder, Colorado-based, non-alcoholic (NA) beverage maker reported more than $5.9 million in total liabilities, including more than $1.1 million in secured liabilities to Brooklyn Brewery, $113,252.21 in priority unsecured claims and more than $4.68 million in nonpriority unsecured claims,” according to the late August petition filed in the U.S. Bankruptcy Court for the District of Colorado by former CEO and board member Betsy Frost.

Hoplark Chapter 7 bankruptcy at a glance

• Hoplark Inc. filed for Chapter 7 bankruptcy on Aug. 28, 2026, in the U.S. Bankruptcy Court for the District of Colorado, according to PacerMonitor.
• The Chapter 7 filing means Hoplark is seeking liquidation rather than reorganizing its debts while continuing as a stand-alone company, the U.S. government definition indicated.
• Hoplark reported approximately $2.07 million in assets and $5.90 million in liabilities in its bankruptcy filing, according to Brewbound.
• The company listed 74 creditors in its bankruptcy petition, according to documents filed on PacerMonitor.
• Hoplark generated approximately $9.3 million in revenue in 2024 but reported only about $630,000 in revenue in 2025, according to information from the bankruptcy filing, added Brewbound.
• The filing listed more than $1.1 million in secured obligations to Brooklyn Brewery, according to Brewbound.
• Hoplark also listed $113,252 in priority unsecured claims and more than $4.68 million in other unsecured claims, Brewbound added.
• Brooklyn Brewery became a minority investor in Hoplark in 2023 and had a licensing relationship with the company, Brewbound reported.
• Brooklyn Brewery has indicated that the Hoplark brand can continue through its licensing arrangement, meaning the bankruptcy of Hoplark Inc. does not necessarily mean the Hoplark brand disappears from stores, according to Brewbound.
• A Chapter 7 trustee, Joli A. Lofstedt, was appointed to the case, reported Inforuptcy.
• Hoplark was founded by Dean Eberhardt and Andrew Markley in Boulder, Colorado, according to CB Insights.
• The company raised more than $25 million over its history, CB Insights noted.

Americans are drinking less alcohol

“The share of Americans who say they drink alcohol remains at a record-low 54% for the second consecutive year, the lowest reading in Gallup’s trend dating back to 1939,” according to a 2026 Gallup report.

Some other data uncovered by the study includes:

• 13% say they sometimes drink too much, also a record low.
• 17% of Americans have substituted nonalcoholic beverages for alcohol.
• Self-reported drinking fell over the previous three years, from 62% in 2023 to 58% in 2024 and 54% in 2025, before holding steady this year.

Gallup based the latest results on interviews with U.S. adults aged 18 and older in its July 1-19 Consumption Habits survey.

The study also showed that health concerns are a key reason as to why Americans are drinking less.

“Fifty-one percent of U.S. adults now believe drinking one or two alcoholic beverages a day is bad for one’s health. The figure is essentially unchanged from last year’s record-high 53% and marks only the second time since Gallup first asked the question in 2001 that a majority has expressed this view,” Gallup reported.

The increase in nonalcoholic beverage sales does not necessarily mean people are giving up alcohol.

“Ninety-three percent of non-alcoholic beverage buyers also buy alcoholic beverages,” NielsenIQ reported.

RTM Nexus CEO Dominick Miserandino sees Hoplark’s failure as part of a broader challenge facing companies in the category and expects more bankruptcies in the space.

“The challenge with a hot category is that everyone sees the same opportunity. Suddenly you have dozens of brands competing for a limited amount of shelf and cooler space. Retailers don’t need ten versions of the same idea. They’re going to keep the products that turn, and being interesting or innovative isn’t enough if the velocity isn’t there,” he told TheStreet.

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