Last Call at Anchor Brewing: A Craft Beer Icon Closes Doors
San Francisco’s iconic Anchor Brewing Company, one of the earliest pioneers of craft brewing in the United States, is set to close its doors after an impressive run of 127 years.
A statement issued by the brewery’s public relations firm explained that the decision to cease operations was arrived at after lengthy and meticulous deliberation, emphasizing the immense difficulty in making such a choice.
The company spokesperson, Sam Singer, expressed the understanding of Anchor’s significance, both historically and currently, to San Francisco and the craft beer industry at large. He, however, noted that the challenges resulting from the pandemic, increasing inflation particularly in San Francisco, and stiff market competition left the company with no other recourse but to shut down.
The brewery, famed for its Anchor Steam beer and Liberty Ale—purportedly one of the earliest iterations of the now globally recognized American pale ale style—was established back in 1896, and boasts of being the nation’s original craft brewery. It changed hands in 2017 when it was acquired for $US85 million by Sapporo, the Japanese brewing powerhouse.
During the sale, Keith Gregor, a co-owner of Anchor Brewing, expressed optimism about the shared values between Anchor and Sapporo. He noted that Sapporo’s long-term vision and financial resources would enhance Anchor’s brewing practices in San Francisco and facilitate its expansion into worldwide markets.
However, the company recently indicated its intent to discontinue national beer distribution, following consecutive annual downturns under Sapporo’s stewardship. Its production volume dropped from 72,500 barrels to 65,000 barrels in 2022, sparking rumors about an impending announcement.
Additional concerns arose last year when Sapporo purchased another Californian craft beer maker, Stone Brewing, in a $US165 million transaction described by the CEO as the ‘perfect union’ for its long-term expansion plans.
Hiroyuki Nose, Sapporo’s vice president of marketing, mentioned in a Bloomberg interview his desire to have a production base on the west coast. He expressed concern about the logistical costs associated with importing the majority of their beer from Canada.
In accordance with the imminent closure, Anchor Brewery has issued a 60-day notice to its employees and plans to sell off its existing inventory, including its 2023 Christmas beer, in its taproom. Although brewing operations have ceased, packaging and distribution will continue until the end of July during the company’s liquidation phase.
Although unsuccessful in finding a buyer in the past year, the company expressed the possibility of acquisition during the liquidation process.
The news of the closure sparked reactions within the craft beer community. Beer critic Stephen Beaumont shared his thoughts on social media, stressing the significant blow this closure represents for every craft beer enthusiast across North America. He emphasized Anchor’s crucial role in inspiring the rise of ‘microbrewing’ and shaping the contemporary craft brewing landscape.
In addition to its influential role in the craft brewing industry, Beaumont argued that Anchor is a cherished part of San Francisco’s history and heritage and, as such, should be preserved by the city council against potential redevelopment. He suggested that if Sapporo fails to capitalize on the property the brewery occupies, it might result in the company’s sale in its entirety rather than its disintegration into parts.
In Beaumont’s view, the closure of Anchor Brewery is more than just a commercial cessation—it signifies a loss of history and neglect of responsibility towards future generations.
