Anchor Brewing Co. to halt operations after 127 years

Full title: Pioneering Anchor Brewing Co. to halt operations after 127 years with beer sales in decline
12 July, 2023
Source: abcnews.go.com

”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,” spokesperson Sam Singer said in a written statement Wednesday.

The brewery teetered on insolvency in the 1960s, when it was acquired by Stanford grad Fritz Maytag, according to Anchor Brewing.

Maytag implemented new brewing practices such as dry hopping, and began bottling the beer in 1971. By the mid 1970s Anchor Brewing had assembled a solid portfolio of respected brews including Anchor Porter, Liberty Ale, Old Foghorn Barleywine Ale, and the first annual Christmas Ale, a sought-after brew around the holiday every year in multiple regions of the U.S.

In 2017 it was purchased by Japan's Sapporo.

(Best Darth Vader impersonation): NOOOOO!!!

The short version of history is Anchor Steam was purchased by Fritz Maytag (washing machine god) because it was his favorite beer. After selling malt extract and soda to survive prohibition 4 breweries in CA survived. Anchor was the only one making ales. They would bottle condition the beer in cave around San Francisco. Due to the partial lagering at cooler temperatures, the CO2 would flow out of the freshly opened bottle “like steam,” Anchor (under Maytag) kept the steam beer tradition alive.

In the 1970s, people began home brewing small batches of beer. Besides the national breweries it was illegal to brew any amount. In 1978 (!!), President Carter signed a bill, championed by Anchor and New Albion Brewing (defunct), that allowed both small, “micro”, breweries and home brewers alike to brew beer.

The age of the microbrewery arrived. Then left because it took talent to make quality beer. Consolidation happened as the big breweries were scared of IPAs and wheat beer! The microbrewery disappeared into corporate portfolios of multinational companies. Yet the yearning for quality beer remains.

That is what this news means. The end of an era has truly hit. In case you haven’t noticed, it is now referred to as “craft brewing” as law, industry, and public tastes adapt to the microbrewery craze of the 1980s and 1990s.

Put down that single barrel, leave the hard seltzer in the fridge, and make a pilgrimage to the beer store to find yourself an Anchor steam beer.

You deserve it! They deserve it!

Its a shame too because Anchor Steam is a great beer.

a reply to: TEOTWAWKIAIFF

If sales are down it's cuz their beer is not that good.

Due to intake of sugars and carbs I prefer seltzers these days.

If I buy a beer it's based on flavour, and it wouldn't be the above. It would be something smoother like Grolsch or Stella. I also like Lagunitas IPA and Stone IPA.

a reply to: TEOTWAWKIAIFF

The Sawmill ("Top of the Hill Daly City!")

Emporium Capwells

Levitz Furniture ("You'll Love It at Levitz!")

Circuit City

Tower Records

Leopold's Music

^^^^
Some examples of businesses that have gone out of business in the Bay Area, never to return.

I don't drink anymore, but I can't recall ever having an Anchor Steam, even though I guarantee you that I did somewhere! 🥴 Lol.

Sad to see SF being decimated by incompetence and lawlessness. I'm sure that plays a part in it too.

So the writing has been on the wall since Anchor sold in 2009ish and Fritz stepped away from operations. Then Sapporo bought it a few years back and just piled debt on. Covid came and an -already-on-the-decline brewery could no longer sell to the restaurant and bar that was their mainstay. They pivoted to bottles and cans (like most did) but the damage was done. Anchor attempted to rebrand, but that caused confusion. They stopped distribution to many states outside of California about 2 years ago, then made it official that they were only distributing in Cali earlier this year. Once they announced that their iconic Christmas Ale would be discontinued, most in the industry knew the clock was ticking.

The rise of craft beer diluted the market, offering more beer closer to home. Offering just as high a quality and fresher beer than the macro breweries could provide. This is the reason big beer started buying up small breweries, it was an attempt to reclaim lost market share on the backs of the micro (10k barrels per year or less) owners hard work.

However, craft beer has started to eat craft beer. As the market became further diluted (seltzer, non-alcoholic offerings) and prices increased while income bumped only a tiny bit, sales started to slump as people became more conscious of spending. Micro is now doing a lot of consolidation when possible, while others just close. I haven't bought Anchor in probably 10 years. Why? Because I could go down 6 blocks from my house and get amazing IPA. That's not Anchor's fault. When there were few breweries that made amazing beer, Anchor was a star. Now, lots of breweries make amazing beer......

a reply to: TEOTWAWKIAIFF

Maybe they can try to get a trans person to be their spoke person and insult their current clientele to see if that helps. I hear their is a brilliant CEO making millions in bonus that appears to think that is a winning strategy.

Could this be due to Desantis and his fight with illegals and Disney? I hear florida is doing horrible right now despite being one of the top states people are moving into.


joking aside as it appears everyone is blaming florida and desantis for everything nowadays but maybe they should reach out to Desantis and relocate to Fl if its due to San Fran and their current state of affairs.

I never tried them but I do love Sapporo. I don't think I have seen it down my neck of the woods in swfl but If I do, I will surely give them a try.

a reply to: EternalShadow

I loved that Tower Records in San Fran! Ah, the 80s!

Beer is not about money. Just like a song is not about just the singer.Even Sheldon Cooper realized that it was his family and friends not just him.

I believe it is this stupid idea of continuing growth at 6% (or more) that has been sold by Ivy League economic students that ruins companies. It is an unattainable goal. Because, how much money do you really need?

If Sapporro really wanted to keep the beer, they would shrink distribution, labor, marketing, and middle management to keep the brand alive. But they are shutting down.

There is where “love” exists; love of a product vs love of money.

That is the shame of the modern world. The “if you can’t make money doing it, why bother” attitude.

That is the same attitude that crashed the microbrewery movement! And probably most “hip” scenes like Seattle back in the day (you know a bass player and have a garage?? Here, sign our contract…)

(Sings the Prince song)…

Money,
Money changes everything….

a reply to: chris_stibrany

**Ahem**

Food & Wine, February 2023: The 25 Most Important American Craft Beers Ever Brewed.

It’s hard to imagine a time when every notable brewery didn’t offer a dark, smooth, roasty, and chocolaty porter. But when Anchor Brewing first introduced its porter in 1972, the style was all but dead. “Anchor Porter was the first post-Prohibition American porter in the U.S.,” explains former Anchor brewmaster Scott Ungermann. “It brought another style of beer to America.” Fifty years later, beer-rating site BeerAdvocate lists nearly 3,000 American porters in its database. Perhaps more amazing is that decades later, many believe the San Francisco-based brewery’s version is still one of the best. “It’s still the gold standard of the style in my book,” says Michael Roper, owner of Chicago’s Hopleaf Bar.

Not bad for only being #5 on the list!

And that is not even the Steam beer!

Anchor beer, California, and loss. 2 of those 3 key words almost always work together, therefore I am not shocked

I had one in the Bay Area in the 90's; I remember it being very hoppish and yeasty. If the grains were burnt it would have been a Guinness I guess is the easiest way to say it.

Can't say I have ever had one...but like most of the older breweries they refuse to adapt. Today people want the craft brewed IPA or stout or whatever the flavor of the night is. To have a portfolio only noted by 4 brews its not wonder they failed. The competition even on a much smaller micro brew scale is crushing them in variety and quality.

Side note...as much as I am not fan of CA I dingo there for work a lot. Recently was in san fran albeit like 4th and mission/market which is one of the nicer areas downtown...but I was amazed the streets had nary a single poo that I saw and the homeless folk were no more intrusive or prevalent than most cities I go...Dallas was almost worse. I did however stray off into a few areas that I immediately knew were the head on a swivel type areas mostly it was upscale and expensive not at all what you would typically associate the San Fran of today to by most reports.

a reply to: RickyD

I guess a better way to schedule your travel to SF is to go by their street cleaning schedule depending on where your staying lol!
www.sfpublicworks.org...

Less turds.

I had a few in Los Angeles 10-12 years ago, IIRC it was very hoppy and a bit skunky who knows though it was a bit of a dive and could have been old. I learned my lessons about old and new beer, I used to buy for our sales meetings and markets when I first got there they would buy one brand both regular and light most times either Michelob, Budweiser, and sometimes Coors.

They didn't get it they weren't beer drinkers, I just always thought it was good hospitality to have multiple labels and brews. Just make an effort to try something new, and have a variety of tastes. The largest order I ever wrote was with a couple from Canada because I made sure we had a case of Guinness at the ready.

Locally Terrapin does a very hoppy beer called Hopsecutioner and it reminded me of that but I love all their brews and I'm usually picky as hell. I love Terrapin and Sweetwater another local Georgia brewer, damn they are so good. Sweetwater's 420 is excellent, and their IPA is off the charts. The point being here in the Southeast beer business is still good is it that crappy on the west coast.

I can't believe a brand as iconic as Anchor could find a home in California or Oregon or Washington.

a reply to: putnam6

I think that there is the option to sell the brewery name and rights (recipes) but they don't have any takers.

A shame such an iconic beer is left twisting in the wind like yesterday's newpaper.

I rather like their beer and style. I really liked the porter and between it an Guinness, it inspired by steps into homebrewing back in 1990s. After a couple tries at "brew from a can" styles, I did a stout. After a couple more tries at getting my technique down, I made what I was searching for, a coffee stout!

My "house beer" is very Anchor Steam like as it is a pale all with some hops to it. I skip the whole lager thing though as that requires a special one-off yeast which my cheap buttocks won't shell out for!

One of the first issues of Zymergy had a clone version. Shame it is either all grain or all ME, as I do partial mash due to available kitchen space.

Thanks for the pics! Those sound fun to try! All I can say is, "lucky"

I wonder what happens next? Sapporo sells the name? What about the existing brewery?!?

I would like to see Sam Adams buy it, bring it East and give it some of the respect it deserves.

From what they allow to happen in SF, it is not a conducive environment for any craft product. That place has lost respect for just about everything.

a reply to: KSDakar01

The brewery will be shut down. Sapporo has offered to sell the whole kit and kaboodle but has no takers. They have already removed the Anchor flag from the building and are flying the stars and stripes. From the article, they (Sap) are assisting workers "displaced" find new employment (... *rolls eyes*...)

From the San Fran papers, news, blogs, etc., locals are not happy.

As a beer aficionado, homebrewer, and general history buff, the loss of heritage does not make me happy and it does not make money either. If nothing else, set up an on-site shop and give tours about Gold Rush California Heritage Beer! Like a Disneyland for us beer nerds! I can see it now... brew kits (both grain and ME), product (bottles, growlers, and kegs), and "educational" brewing classes where you get hands on brewing... all under the Anchor label. Call their travel agent and ask about group rates and hotel discounts!

It is not rocket surgery...

I see AS taken under the wing of a mid-sized brewery, like Sierra Nevada, or maybe another like it. Anchor porter was hands down my favorite beer ever. Sad to see them go.

I should have been paying attention over the last month the downtown retail scene in San Francisco has tanked. Nordtrom, Old Navy, hell, a whole mall, has closed down. The restaurant are desperate for customers. This has been their local news until the OP headline.

I should have been paying attention. Sorry ATS!!

16 July, 2023, AP News - Diversify or die: San Francisco’s downtown is a wake-up call for other cities.

Empty storefronts dot the streets. Large “going out of business” signs hang in windows. Uniqlo, Nordstrom Rack and Anthropologie are gone. Last month, the owner of Westfield San Francisco Centre, a fixture for more than 20 years, said it was handing the mall back to its lender, citing declining sales and foot traffic. The owner of two towering hotels, including a Hilton, did the same.

Beer is just a stand by victim or so it appears.