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(Trends Wide) — Pour a drink in honor of Anchor Brewing: America’s oldest craft brewery closes its doors after 127 years in business.
The San Francisco-based company announced Wednesday that it will cease operations and liquidate its beloved business “following a combination of challenging economic factors and declining sales since 2016,” it said in a press release. Craft brewers, in particular, have struggled for a variety of reasons including changing consumer habits, rising costs, and ongoing supply chain challenges.
Another issue was Sapporo, the Japanese brewing company that bought the brand in 2017. Employees complained to VinePair last month about Sapporo’s alleged mismanagement and lack of awareness of craft beer in the US. They also criticized a change Anchor brand name in 2021 for straying too far from the brand’s classic look.
“This was an extremely difficult decision that Anchor made only after many months of careful evaluation,” Anchor Brewing spokesman Sam Singer said. He added that “the impacts of the pandemic, inflation, especially in San Francisco, and a highly competitive market left the company with no choice but to make this sad decision to cease operations.”
The 61 Anchor workers were given 60-day legal notice on Wednesday and will receive “separation and transition support packages.” Brewing has stopped immediately and the available beer will still be sold through the end of July.
Last month, Anchor cut national distribution, limiting its sales to California only, and announced it was ending production of its fan-favorite Christmas Ale after nearly 50 years in the making. (A “small volume” of their Christmas Ale will now continue to be sold in their taverns while supplies last.)
Anchor said those decisions were made to “reduce costs while making final attempts to evaluate all possible outcomes,” however, “in the end, expenses simply continued to outpace revenue, leaving the company with no alternative.”
Sapporo has put “a lot of effort” over the past year to sell the business, Anchor said. But those efforts failed, though he clarified that “a buyer for the brewery may come along as part of the liquidation process.”
Anchor began in 1896 in San Francisco, becoming the country’s first craft brewery. Fritz Maytag, a scion of the Maytag Corporation, bought Anchor in 1965 when it was on the verge of bankruptcy and helped usher in the US craft beer industry. His most notable beer was Steam Beer, a prevent swallowing.
Under Sapporo’s ownership, Anchor’s beer production was declining a bit every year (except 2021), according to the Brewers Association. Brewbound, a brewing industry website, previously reported that Sapporo’s recent purchase of craft brewery Stone Brewing raised concerns among Anchor employees about how their brewery would fit into Sapporo’s plans.
Sapporo did not respond to a request for comment.
The situation for craft breweries did not improve this year. NIQ data provided to Craft Business Daily showed that category sales are down nearly 4% year-to-date and volume is down more than 7%, showing that “craft is off to a good start.” difficult in 2023,” the publication said.
“This is a sad day in the history of craft brewing in America,” Harry Schuhmacher, editor of Craft Business Daily, told Trends Wide. “I know that Fritz must be heartbroken. He literally nurtured that brewery from insolvency in the ’60s to becoming San Francisco’s home brew and a symbol of America’s craft beer resurgence.”
Anchor’s closure “highlights the economic headwinds” facing craft brewers, Brian Crawford, executive director of the Beer Institute, told Trends Wide. “Between unnecessary and damaging aluminum tariffs, continued supply chain disruptions, and dubious tax loopholes for hard liquor products, the brewing industry faces significant challenges.”
