It survived the devastating 1906 San Francisco earthquake, Prohibition, and both world wars. But the recent economic pressure has proved too great for the company, which is considered the oldest craft brewery in the country: After 127 years, the Anchor Brewing Company is closing.
In a statement released Wednesday, the company, founded in 1896, said that due to the impact of the pandemic, inflation and a highly competitive marketplace, it “had no choice but to make this sad decision to cease operations.” Employees were given a notice period of 60 days and they were promised severance packages, the company said. Anchor added that while the company has stopped brewing, it will continue to package and distribute beer while it is available. It will be sold in draft form while stocks last, it said.
The brewery’s sales had been declining since 2016, and in 2017 the company was acquired by Japanese beer giant Sapporo for around $85 million.
“The core issue for Anchor was the pandemic,” Sam Singer, a company spokesman, said by phone on Wednesday, noting that 70 percent of its products had been sold in restaurants and bars. In 2021, Anchor Brewing sought to adapt, rebranding and bottling and canning more of its beers to sell in grocery stores. But those changes “couldn’t make up for the significant loss in revenue,” he added. In a last-ditch effort to stay afloat, Anchor limited sales of its beer to California and halted production of one of its products, a Christmas beer.
However, expenses continued to exceed income. “The bottom line is that Anchor ran out of money and time,” Mr. Singer said.
Popular with many Americans and often credited with fueling the craft beer resurgence of the 1960s, Anchor is the latest brewery to succumb to the pressures of a highly competitive market. In recent years, numerous smaller breweries have been taken over by larger companies. Others have revised or discontinued their distribution models.
Regional breweries like Anchor, which are large enough to sell their beers nationally but small enough to be considered craft breweries, are most at risk. They face competition from both local microbreweries and large breweries like Coors or Miller, said Jarrett Hart, an agronomist and economist at the University of California, Davis whose research focuses on craft beer. “They’ve been losing profits year after year and generally losing market share,” he said.
Following Sapporo’s acquisition of Anchor, workers spoke out about what they saw as inadequate wages and unfair working conditions, and voted to form a union in 2019.
Joanne Marino, the executive director of the Bay Area Brewers Guild, said Wednesday that given the crippling economic reality, it’s no surprise that Anchor has closed. But she said the news is still heartbreaking.
“Whenever a small brewery is bought by a large multinational, the bill for its existence changes a bit,” Ms. Marino said. “It’s not a surprise but it’s a shock and it’s a very sad day here.”
Anchor Brewing said that despite repeated efforts to find buyers for the brewery and its brands, no fruit has borne fruit. Mr Singer said the brewery has endured many crises in its history and hopes there is still a chance for a revival if a buyer steps forward during the liquidation process.
“San Francisco’s flag is a phoenix rising from the ashes, and Anchor has had many phoenix moments throughout its history,” said Mr. Singer. “But that’s out of our hands now,” he added. “We can only hope for the best.”