Anchor Brewing, the nation’s oldest craft brewery, will cease operations and the business will be liquidated, the company’s public relations firm announced today.
The San Francisco craft brewery, which was acquired for $85 million by Sapporo in August 2017, cited “a combination of challenging economic factors and declining sales since 2016.” Ultimately, the company said the economic pressure “made the business no longer sustainable.”
Vine Pair reporter Dave Infante first reported the possibility of Anchor ceasing production or being sold Tuesday evening.
Workers at Anchor were given 60 day’s notice today “with intent to provide transition support and separation packages in line with company practices and policies,” according to a press release.
Production has ceased at the brewery, but packaging and distribution of remaining beer on hand will continue through the end of July. Anchor’s Public Taps taproom will temporarily remain open to sell through remaining inventory, including a small batch of 2023 Anchor Christmas Ale that was brewed prior to the decision to cancel the ale’s national release.
“Repeated efforts” to sell the business fell short over the last year, per the release. A buyer could potentially emerge as part of the liquidation process. However, the company is entering a process in which an assignee will liquidate the business’ assets to pay off creditors as part of a California Assignment for the Benefit of Creditors, which is an alternative to filing Chapter 7 or 11 bankruptcy.
“This was an extremely difficult decision that Anchor reached only after many months of careful evaluation,” Anchor spokesperson Sam Singer said in the release issued Wednesday morning. “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.”
The news follows Anchor pulling back its national distribution to just California and cutting production of Christmas Ale, the 49th release of the seasonal offering. Those cost cutting measures were part of what the company termed “final attempts … to evaluate all possible outcomes” but “expenses simply continued to outstrip revenues, leaving the company with no other viable choice.”
Production under Sapporo’s leadership declined in every other year with the exception of 2021, when volume increased +45%, to 72,500 barrels, its highest point since the 89,612 barrels produced in 2018, according to the Brewers Association’s New Brewer Magazine.
In 2022, Anchor’s volume declined -10% in 2022, to 65,000 barrels..
Brewbound previously reported that Anchor employees were uncertain about their fate since parent company Sapporo reached a deal to acquire Stone Brewing in June 2022, citing a “lack of transparency” in Sapporo’s plans with Stone and how it affects Anchor.”
Union negotiations were delayed at Anchor earlier this year, although a second contract has been ratified.
Anchor was established in 1896, making it the nation’s first craft brewery. The brand received a revival in 1965 under Fritz Maytag’s ownership and Steam Beer was established as an iconic craft brand.