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Mikkeller has announced that it will close its US brewing facility in San Diego, after “two years of Covid and the difficult current rising cost environment have taken its toll on the international brewing business”. The brewery will, however, continue to sell its beer in the US through a contract brewing agreement with AleSmith Brewing Company. The company says that "contract brewing has been one of the keys to Mikkeller’s global success". The closure does not include its taproom in Little Italy, San Diego or in San Francisco. Mikkeller's founder, Mikkel Bjergsø, said: “This has been a very hard decision for us to make and comes with a lot of heartache for the Mikkeller employees affected by the closing. The hardships facing the craft beer industry and the economy at large are known to anyone; supply chain issues, rising costs, and unstable market conditions post-pandemic just to name a few. Unfortunately, this means that it is just not sustainable anymore to keep operating our San Diego brewery.” Mikkeller still operates three breweries in London, UK, and Copenhagen, Denmark.