Historic Anchor Brewing Company in San Francisco ceasing operations; Will liquidate assets

SAN FRANCISCO -- A landmark company in San Francisco has turned off its taps after 127 years.

Anchor Brewing Company officials announced early Wednesday that it will cease operations and liquidate the business -- established in 1896 -- citing economic factors including declining sales since 2016.

The company gave employees 60-day notices "with the intent to provide transition support and separation packages in line with company practices and policies," according to the announcement from company spokesperson Sam Singer.

"This was an extremely difficult decision that Anchor reached only after many months of careful evaluation," Singer said in the announcement. "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."

Anchor recently announced it would limit sales of Anchor beers to California and that it would cut production of its Anchor Christmas Ale.

The announcement reports that Anchor has stopped brewing and will continue packaging and distributing the beer on hand while available or through around the end of July. Anchor Public Taps will remain open temporarily, selling remaining inventory, including a small volume of 2023 Anchor Christmas Ale, which was brewed prior to the company's recent decision to cancel the nationwide release.

"Anchor has invested great passion and significant resources into the company," Singer said. "Unfortunately, today's economic pressures have made the business no longer sustainable, and we had to make the heartbreaking decision to cease operations."

Singer said the company is negotiating to file for bankruptcy under federal Chapter 7 or 11.

The news has left locals and beer enthusiasts feeling nostalgic and saddened.

"It's sad. It's the end of an era," said Steve Comb, a San Francisco resident who has worked near the brewery for 15 years. He recalled fond memories of enjoying Anchor Steam, the brewery's flagship beer, before attending Grateful Dead concerts in the 1970s.

"I think back to the 1970s when Fritz Maytag first bought Anchor Steam," said Comb. "It was my first craft beer that we had, and we used to drink it before we would go to see the Grateful Dead play in Winterland."  

Based in the Potrero Hill neighborhood, the company describes itself as the nation's first craft brewery. It was acquired by Sapporo USA in 2017.

On Tuesday, employees received an email to join its president for a meeting Wednesday morning about the company's direction. 

"It's a really sad day for the employees," Singer said. "There are 61 of them, including loyal union members. We are doing our very best to take care of them."

Ahead of Wednesday's announcement, some loyal customers were feeling anxious about the signs pointing to the company shutting down. 

"Even before I lived in California, everyone knows Anchor Steam, so it's sort of an American institution and it seems like a shame if that goes away," said Kris Leifur, who regularly joins friend Kris Leifur at Anchor Public Taps on De Haro Street. 

"I wanted to cry," Sartori said of her first reaction to the potential closure. "It's such an institution, the city needs to keep this alive, so many other things are dying here, somebody needs to come in and save it."

Last month, Anchor Brewing said it would significantly cut its distribution and cancel its signature Christmas beer, a longtime tradition.

"The fact that they're not going to make these beers anymore is just insane to me, if that happens, I will be devastated," said Leifer. "Going to need to build a vault and start stockpiling."

"Revolt," said Sartori as she laughed. "It's going to be sad, it's going to be awful."

Even though Anchor is going to end up in the hands of a liquidation company, Singer hopes something could save the brand and its legacy. 

"We hope that someone could come along and buy Anchor as we enjoy it today, but it's quite possible that it will be sold in pieces," said Singer. "We can only hope for the best. San Francisco's flag is a phoenix rising from the ashes; hopefully the same will be true for Anchor."

Comb agrees. He thinks this is not related to the increasing number of businesses leaving the city.

"Cities and societies move ahead," said Comb. "Sometimes is two steps forward and one step back but I am optimistic on the long term."