Anchor Brewing, the OG of craft beer, to ‘liquidate the business’ after years of losses

MarketWatch ^ | July 12, 2023 | Tomi KilgoreFollow

[ProtectOurFreedom]

The 127-year-old maker of the influential beer Anchor Steam files for a form of bankruptcy amid a prolonged pandemic impact in San Francisco

Anchor Brewing Co., the self-proclaimed first craft brewery in the U.S., said it will “cease operations and liquidate the business,” about 127 years after being incorporated.

“This was an extremely difficult decision that Anchor reached only after many months of careful evaluation,” said Anchor Brewing Spokesperson Sam Singer.

Anchor, whose beer lineup includes Anchor Steam, Old Foghorn and West Coast IPA, has decided to begin the assignment for the benefit of creditors, or ABC, process, which is a form of bankruptcy. Sapporo Holdings Ltd. 2501, +0.03%, which bought San Francisco–based Anchor in 2017, said Wednesday that it had approved the ABC.

The ABC comes after Anchor was “significantly affected” by the COVID-19 pandemic, with “particularly prolonged” impact in the San Francisco area leading to a significant decrease in sales.

“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, which was incorporated in March 1896, has stopped brewing, but will continue to package and distribute beer on hand while available to about the end of July. Employees were given 60-days notice, and the brewer has plans to provide separation packages and transition support.

Anchor recorded losses of $9 million on sales of $10 million in 2022, after losses of $9 million on sales of $12 million in 2021 and losses of $12 million on sales of $12 million in 2020. Net assets dropped to $3 million in 2022 from $13 million in 2021 and $35 million in 2020.

[ProtectOurFreedom]

Oh, NO! The brewer of my all-time favorite beer is going out of business. They've already stopped brewing Anchor Steam.

Anchor is dear to my heart because it was the first craft beer I ever drank. At the University of Missouri, we drank nothing but mass-market beers (Busch, Bud, Hamms, PBR and Schlitz with an occasional Coors thrown in). I didn't realize that REAL beer even existed until I moved to San Francisco and discovered Anchor Steam in 1973. After that, I never went back to mass-market beers. I've been drinking Anchor for 50 years now!

The business history of the company is interesting. From Wiki -->

[After founding in 1896] Anchor shut its doors briefly in 1959, but was bought and reopened the following year. By 1965, however, it was doing so poorly that it nearly closed again. Anchor's situation continued to deteriorate largely because the current owners lacked the expertise, equipment, and attention to cleanliness that were required to produce consistent batches of beer for commercial consumption. The brewery gained a reputation for producing sour, bad beer.

In 1965, Frederick Louis "Fritz" Maytag III bought the brewery, saving it from closure. He purchased 51 percent of the brewery for several thousand dollars, and later purchased the brewery outright. It moved to its current location near Potrero Hill in 1979.

Turning the failing brewery around required more than the money in Maytag's fortune. He also had to change the character of the beer that was produced there. Between purchasing Anchor and producing the first batches of bottled Anchor Steam in 1971, Maytag had to learn the brewing process from scratch, invest in improvements to the equipment, and focus heavily on cleanliness in the brewing process. The new beer was a definitive representative of California common beer, a derivative of historic steam beer.

This is so sad. Another San Francisco business bites the dust and this time it doesn't appear to be due to high crime or rampant shoplifting but the government-caused COVID pandemic shutdowns. (at least that's what they are claiming). Congratulations you incompetent government azzholes, you've claimed another business.

The building of the Anchor Brewing Company in San Francisco, seen across the intersection of Mariposa and De Haro.

[Red Badger]

[Mariner]

A truly special beer and great loss.

[dynachrome]

San FranSicko, where buinesses go to die.

[uranium penguin]

They lived through Prohibition..

But could not live through Biden and the San Francisco of today.

[Yo-Yo]

[Tench_Coxe]

That is a shame. It’s a truly American beer style (California common), and a good beer. Hopefully someone else can pick it up.

[BipolarBob]

If only they weren’t anchored in San Francisco. Or Kalifornia for that matter. It takes more than a good beer to make it. It takes a pro business city/state culture. Maybe they can rebuild somewhere else. I hope so.

[beethovenfan]

I thought Anchor had been bought by a Japanese brewer.

[W.]

My favorite REAL beer. :(

[Responsibility2nd]

A San Francisco brewery company? Going out of business? Boo fricken hoo.

[kiryandil]

Anchor Steam is a pretty decent beer.

[Tench_Coxe]

Sapporo in 2017.

[Boogieman]

“amid a prolonged pandemic impact in San Francisco”

More like “amid a prolonged socialist government impact in San Francisco”.

[Grampa Dave]

About 4 decades ago I was in San Francisco with one of our senior managers. He was a Marine Korean war vet. He was a role model of a 50 year old combat Marine vet.

We had a long day of interviewing lefties at UC SF. I wanted a beer, and he ordered a couple of ASB’s for us.

That beer became basically my beer of choice from then until I turned 70.

[PGR88]

Anchor recorded losses of $9 million on sales of $10 million in 2022, after losses of $9 million on sales of $12 million in 2021 and losses of $12 million on sales of $12 million in 2020.

I see their product at our local supermarkets here in New York. Who knew their sales were only $10-$12 million? I would have guessed it was 10X as much.

[beethovenfan]

So what happened? The article didn’t mention Sapporo

[pissant]

Holy Crap, in my top 5 of all US breweries. Iconic

[ProtectOurFreedom]

They were bought by Sapporo in 2017. I’m surprised Sapporo didn’t keep them afloat a bit longer.

[ProtectOurFreedom]

“…my beer of choice until I turned 70…when I switched to Bud Light.”

Now you know the rest of the story.