Iconic Anchor Brewing Co. suspending operations after 127-year history due to declining beer sales
San Francisco's Anchor Brewing Co. to shut down due to declining sales.
San Francisco's iconic Anchor Brewing Co., which has been operating for 127 years, has announced that it will be closing down and liquidating. The brewery, known for pioneering craft beers in the 1970s, has struggled in recent years due to declining sales and tough economic conditions.
Anchor Brewing Co. was a trailblazer in the United States, introducing craft beers at a time when major brands dominated the market. Its unique brewing techniques and high-quality products quickly gained popularity beyond the city of San Francisco, making it a sought-after brand for beer enthusiasts across the country.
However, in recent years, the brewing industry has faced challenges with the rise of canned cocktails, crafted drinks, spirits, and wines, which have impacted beer sales. The COVID-19 pandemic and subsequent lockdowns further added to the difficulties faced by brewers.
According to the Brewers Association, overall beer sales volume in the U.S. declined by 3.1% last year. While craft brewer sales volume saw a slight increase of 0.1%, imports have been on the rise.
In a written statement, Anchor Brewing Co. spokesperson Sam Singer explained that the decision to cease operations was a result of the impacts of the pandemic, inflation (particularly in San Francisco), and a highly competitive market. The company recognized the historic significance of Anchor to San Francisco and the craft brewing industry but ultimately had no choice but to close down.
Anchor Brewing Co. had faced financial challenges in the past and was acquired by Fritz Maytag, a Stanford University graduate, in the 1960s. Maytag implemented new brewing practices and began bottling the beer in 1971. By the mid-1970s, Anchor Brewing Co. had established a solid portfolio of respected brews, including Anchor Porter, Liberty Ale, Old Foghorn Barleywine Ale, and its annual Christmas Ale, which became a holiday tradition for beer lovers.
Fritz Maytag's approach to beer, using traditional ingredients and methods while being defiant and hyper-local, sparked a revival in small-scale brewing. His vision and attitude laid the foundation for the emerging craft brewing industry, inspiring others to follow suit.
In 2017, Anchor Brewing Co. was sold to Japanese brewer Sapporo, and it has now been decided to discontinue the brand. Despite efforts to find buyers for the brewery and its brands, no suitable buyer was found. However, there is still a possibility that a buyer may emerge during the liquidation process.
The news of Anchor Brewing Co.'s closure has come as a shock to many San Francisco natives, who view Anchor Steam beer as a classic symbol of the city, much like sourdough bread. The loss of the brewery, with its over 100 years of history, is seen as a blow to the city's cultural heritage.
Anchor Brewing Co. recently announced that it would limit sales of its beers to California and reduce production of its Anchor Christmas Ale to cut costs. The brewery has ceased brewing operations but will continue packaging and distributing its remaining stock until the end of the month.
Employees have been given a 60-day notice, and the company plans to provide transition support and separation packages. Anchor Public Taps, the brewery's taproom, will remain open to sell the remaining inventory, including a small batch of the 2023 Anchor Christmas Ale, which was brewed prior to the decision to cancel the nationwide release.
The closure of Anchor Brewing Co. marks the end of an era for San Francisco and the craft brewing industry. The company's legacy as a pioneer and its contribution to the beer industry will be remembered, but the challenges of the modern market have made it unsustainable for the brewery to continue its operations.