A San Francisco brewery with roots dating back to the California Gold Rush says it is shutting down after 127 years in business.
Anchor Brewing Co. announced in a press release Wednesday that it has no choice but to close up shop, citing a "combination of challenging economic factors and declining sales since 2016."
"This was an extremely difficult decision that Anchor reached only after many months of careful evaluation," said Sam Singer, Anchor Brewing spokesperson.
"We recognize the importance and historic significance of Anchor to San Francisco and to the craft brewing industry," Singer continued. "[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."
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The shuttering of the iconic brewery on Potrero Hill is another blow to San Francisco as the California city has seen an exodus of major businesses since pandemic shutdowns and amid recent crime spikes.
Anchor said it has tried unsuccessfully for a year to find a buyer and hopes one might still come forward during the liquidation process.
The company was founded in 1896 and has long marketed itself as America's first craft brewery. It was purchased by Japanese brewery Sapporo Holdings Ltd. in 2017 and has since undergone significant changes.
In 2019, Anchor employees voted to unionize, which the company said on its website made it the "pioneer of the craft beer union movement."
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Then in 2021, Anchor Brewing underwent a major rebrand, changing the look of its products. According to JustDrinks, sales continued to tumble despite the updated look, falling 10% last year.
Sapporo said in a media release of its own Wednesday that it originally bought Anchor to expand its presence in the U.S. market, and it also pointed to the "prolonged" impact of COVID-19 on the San Francisco area as a reason for Anchor's continued decline.
"Over the past several years, we implemented a variety of measures to improve the business, such as releasing new products, product renewals, and making brand investments," Sapporo stated. "However, Anchor’s business performance continued to be sluggish."
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Sapporo said it will now focus growth efforts in the U.S. on expanding its own brand and through Stone Brewing Co., which it acquired in August 2022 for $165 million.
