San Francisco’s Anchor Brewing to Cease Operations

Craft beer has been experiencing difficult times the past three years, but I doubt that even the most pervasive naysayers would have predicted the news that just came out of California.

San Francisco’s Anchor Brewing Company, an iconic brewery that dates back 127 years, is going to shut down. The company that introduced steam beer to the world and that was celebrated every holiday season when it released its annual Christmas ale, is calling it quits, citing economic reasons.

What Happened?

We all know that the COVID pandemic took its toll on the craft beer industry. A large percentage of craft breweries rely on their taprooms as an important source of revenue and with COVID raging across the land, most were forced to shutdown and look for other ways to market their product or otherwise stay afloat during uncertain times. Anchor Brewing was impacted too, but most of its revenues were supplied by retail sales of product, not through its taproom operations. So, how could a brewery with such an historic presence and widespread respect not be able to weather the storm? Anchor Brewing spokesperson Sam Singer explains:

“This was an extremely difficult decision that Anchor reached only after many months of careful evaluation,” said Singer. “We recognize the importance and historic significance of Anchor to San Francisco and to the craft brewing industry, but the impacts of the pandemic, inflation, especially in San Francisco, and a highly competitive market left the company with no option but to make this sad decision to cease operations.”

According to other press releases, Anchor Brewing had suffered declining sales since 2016. Craft beer industry followers might recall that Japan’s Sapporo purchased Anchor in 2017, before the pandemic hit. The brewery was already in decline, having been out maneuvered by other craft beer competitors. Worse still, the acquisition by Sapporo meant that Anchor Brewing was no longer classified as a craft brewery. The loss of this designation certainly added to the brewery’s pain. Without the craft beer label, many fans rejected its product and turned elsewhere.

Is There a Future?

Anchor Brewing says that it will put its assets up for sale rather than declare official bankruptcy. The management also claims it was seeking a buyer but none has come forward. If you know anything about Anchor Brewery’s past, then you already know that the company was saved from shutdown back in 1965 by a man named Fritz Maytag, of appliance fame. The situation today is similar.

Anchor dates all the way back to 1896, making it one of America’s oldest breweries. We at Great Beer Now were concerned when, just weeks ago, Anchor announced it was no longer going to distribute beers outside of its home base of California. It was not news we wanted to hear, but it also made us worry that Anchor’s problems were far greater than we suspected. Today’s news confirmed those fears.

We are still hopeful that someone will come forward at the last minute and do for Anchor what Fritz Maytag did for the brewery in the 1960’s. Anchor Brewery is an iconic business with a storied past. It would be a real shame to have Anchor vanish from the craft beer scene. We hope that a buyer will be found in the coming weeks, someone who can save the brand from extinction and return it to craft beer glory.

Fingers crossed!