The San Francisco company was known for its steam lager and annual Christmas ale. Photo: Craig Lee/San Francisco Chronicle
The self-proclaimed oldest craft brewery in the US has survived earthquakes, prohibition and two world wars, but the current downturn has proven too much.
San Francisco-based Anchor Brewing, founded in 1896, has announced it is going out of business and preparing for liquidation as a result of “difficult economic factors.”
The company, known for its steam lager and annual Christmas ale produced since the 1970s, said it had made “repeated attempts” to find a buyer, but to no avail.
This marks the end of one of America's oldest breweries. Anchor was founded during the California gold rush by Ernst F. Baruth, a German immigrant, and his son-in-law, who bought a beer and billiard parlor in San Francisco.
The building burned down in the fires that followed the city's historic 1906 earthquake, but has been reconstructed. Anchor was closed during Prohibition in the 1920s, but managed to reopen and resume production after the alcohol ban was lifted in 1933.
Anchor also suffered a collapse in the 1960s. The brewery was on the verge of closing when businessman Fritz Maytag, who is considered one of the fathers of the modern craft brewing movement, bought it.Anchor Brewing, founded in 1896, claims to be the oldest craft brewery in the United States. Photo: JOHN G MABANGLO/Shutterstock
While other Major American breweries began to release lagers for the mass market, Mr Maytag decided to focus on traditional styles.
He reformulated the brewery's beer to be became closer to the “steam beer” brewed in California in the late 19th century and turned its flagship brand into a worldwide success.
Mr Maytag sold Anchor in 2010 and the current owner of Sapporo, a Japanese brewer, bought the business for $85m (£65m) in 2017.
In recent years, Anchor has battled the effects of the pandemic and soaring inflation.
Anchor's failed relaunch in 2021 failed to restart sales and sparked consumer backlash.
Trevor Stirling, an analyst at Bernstein, said the brewery has also been hit by a wider decline in the craft beer market.
He said: “For a long time, craft beer grew very fast. But its growth has already begun to slow… not everyone wants to drink 9% alcohol, always double-hopping IPAs.
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U.S. beer consumption fell 3.1% last year. according to the Brewers Association, as more people switched to alternatives like hard seltzer and spirits, or decided not to drink alcohol at all.
Last month, Anchor said it would stop selling its beer anywhere but its own California is making one last attempt to cut costs.
Sam Singer, a spokesman for the brewery, said: “Anchor has poured a lot of passion and significant resources into the company.
“Unfortunately, today's economic pressure has made the business is unsustainable and we have had to make the heartbreaking decision to cease operations.”
We have reached out to Sapporo for comment. Anchor said there could still be a buyer in the liquidation process.
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