USA, NC: TRU Colors Brewing to close its doors this week

TRU Colors Brewing — a Wilmington-based brewery renowned for its mission to end gang violence by employing active, rival gang members — will close its doors this week, the Star News Online reported on September 7.

George Taylor, TRU Colors founder and chief executive officer, cited a lack of funds and local and national media as some of the primary challenges the brewery faced and, ultimately, couldn't overcome.

"To the TRU Colors team and all the others who were counting on our success, I am deeply sorry I let you down," Taylor said in a lengthy statement emailed to the StarNews on September 7. "TRU Colors is so much more than a startup or financial investment. It is a vision and a mission, that are critical to our future. What our team did mattered and what our team did worked, but we ran out of runway. The cost of change is high."

The announcement comes less than two weeks after the national magazine The New Yorker published an article examining the brewery and its mission.

TRU Colors was founded in 2017 on the belief that lack of economic opportunity fueled gang violence. Taylor brought rival gang members together to teach them life skills and offer them jobs, in hopes the economic opportunity would foster productivity and discourage violence.

As of this summer, TRU Colors employed some 70 active, rival gang members in its 56,000-square-foot brewery on Greenfield Street. Its taproom opened to the public just two months ago. Distribution of the brewery's first and only beer, TRU Light, began in late September 2021.

During its five-year run, TRU Colors gained national praise for its social mission to end violence, even appearing on Good Morning America to discuss the model. Locally, community members and law enforcement largely remained skeptical.

In July 2021, speculation of the brewery's mission grew when two people were shot and killed in the Wilmington home of Taylor's son, George Taylor III. One of the victims was employed at TRU Colors and Taylor III served as the company's chief operations officer.

Three suspects were arrested and charged in connection with the killings — all validated gang members, the New Hanover County Sheriff's Office confirmed.

At the time, New Hanover County Sheriff Ed McMahon and District Attorney Ben David questioned the business model as a way to end violence. In July, McMahon told the StarNews his opinion on the business remained the same.

"I want people to be successful with their business, but I don’t support the idea of remaining an active gang member," McMahon said.

In the three-and-a-half-page statement issued Wednesday, Taylor said TRU Colors had been successful in its social mission — giving gang members jobs, life skills, financial opportunities and hope for a future.

But, he also claimed local and national media's portrayal of the business cost the business potential investments.

"When TRU Colors is searched, news articles on some of our most personal and difficult moments appear with salacious headlines that would frighten most," he said. "This has been costly and over the past year TRU Colors has lost $5.6 million dollars in investment."

In April 2021, Molson Coors Beverage Company, the operator of the world’s largest single brewing facility in Golden, Colorado, announced it was acquiring a minority stake in TRU Colors. In March 2022, PNC Bank announced it had invested $9.25 million in financing to support the growth of the brewery and “social impact company.”

Taylor's statement also addressed these investments.

"Because of these lost deals, and contrary to what the media portrays, TRU Colors does not have millions of dollars," he said. "We are very grateful for our corporate partners, but the fact is that Molson Coors took a small equity stake and while PNC Bank also invested, it was a refi of our building and equipment. After fees and repayments, TRU Colors was left with about $8,000."

David and the Wilmington Police Department declined to comment following TRU Colors' announcement. McMahon did not respond to a request for comment by the time of publication.

08 September, 2022