After 127 years, Anchor Brewing, the first and oldest craft brewery in the US, has announced that it will be ceasing its operations. The San Francisco-based brewery, founded in 1896, has struggled financially due to competition in the market, inflation, and declining sales, particularly following its acquisition by Japanese beer distributor Sapporo in 2017. The company spokesperson, Sam Singer, stated that these factors ultimately left Anchor Brewing with no choice but to make the sad decision to close down.
Garrett Oliver, the brewmaster of Brooklyn Brewery, expressed his sadness at the company’s closure, calling Anchor Brewing the grandfather of all American craft brewing. He reminisced about how their Liberty Ale was a revelation when he was a homebrewer in the 1980s, and how Anchor Brewing had served as an inspiration for many other breweries.
Anchor’s decline reflects the broader economic challenges faced by craft beer distributors in recent years, exacerbated by the COVID-19 pandemic. Changing consumer habits and a decline in sales have led to smaller breweries either being acquired by major distributors, rebranding, or going out of business.
Singer revealed that the pandemic had dealt a significant blow to Anchor Brewing, as 70% of the company’s products were sold to restaurants and bars, which suffered heavily during the pandemic.
Anchor Brewing has a storied history of overcoming challenges. It survived the historic San Francisco earthquake and the prohibition era. After Fritz Maytag acquired the brewery in 1965, it experienced a resurgence, becoming known for its popular pale ale and Christmas ale.
Harry Schuhmacher, publisher of the trade publication Craft Business Daily, described Anchor’s closure as a sad day in the history of craft brewing in America. He praised Maytag for saving the brewery from insolvency in the 1960s and transforming it into a symbol of America’s craft beer resurgence.
During the pandemic, Anchor Brewing rebranded and began selling its products in grocery stores. However, in recent months, the company limited its distribution to California and ceased production of its popular Christmas ale after 50 years.
Anchor Brewing has given its 61 employees 60 days’ notice, and it will continue selling its remaining beer until the end of July. While Sapporo has made unsuccessful attempts to sell the brewery in the past, there is still hope that a buyer will step forward during the liquidation process.
Oliver expressed his hope that Anchor Brewing will find a way to come back. He acknowledged that it takes creativity, agility, and a bit of luck for breweries to survive and remain popular among consumers.