Iconic San Francisco beer maker Anchor Brewing Co. has shut down production, ending a 127-year run for what's considered to be America's first craft brewery.
Known for its complex ales, Anchor Brewing is owned by Tokyo-based Sapporo Holdings — which also is the parent company of Escondido's Stone Brewing. The closure does not signal a change in Sapporo's strategy of making the U.S. a growth driver for its beer business, according to the company.
"Anchor Brewing's plans to cease operations are unique to Anchor's business only," said Maria Stipp, chief executive of Stone Brewing. "Plans set forth by Sapporo USA and Stone Brewing remain unchanged. We are continuing to move forward with our expansion and growth plans, including the brewing of all Sapporo beers for the U.S. market at Stone's facilities."
Sapporo blamed the closure on the prolonged economic slump in San Francisco during and after the COVID-19 pandemic. Anchor Brewing employed 61 workers, at least some of whom were members of a union. They are expected to receive 60-days notice and severance packages. Sapporo Holdings reported losses due to the liquidation are expected to total roughly $43 million.
"This was an extremely difficult decision that we reached only after many months of careful evaluation," said Sam Singer, an Anchor Brewing spokesperson. "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 us with no option but to make this sad decision."
Anchor Brewing first opened in 1896. It was revamped in 1965 by a new owner and became foundational to the craft beer movement.
Sapporo said it tried to sell Anchor Brewing but was unsuccessful. Anchor produced about 35,000 barrels in 2022. That compares with about 376,000 barrels for Stone Brewing.
Sapporo purchased Anchor Brewing in 2017. In a filing for investors on its website, Sapporo said Anchor generated $10 million in sales and $9 million in operating losses last year.
The company plans to enter a California Assignment for the Benefit of Creditors proceeding, which is a court monitored alternative to bankruptcy. Sapporo said it is possible that a buyer will step forward for the brewery as part of the liquidation process.
