Anchor Brewing Company, a longstanding San Francisco institution, confirmed Wednesday its decision to halt operations and liquidate assets.
The company’s spokesperson, Sam Singer, cited unsustainable economic pressures as the reason for the closure.
The announcement followed a series of other significant changes for the brewery.
In June, it limited its distribution to California only and discontinued a popular beer.
Singer identified inflated product costs in San Francisco as a contributing factor in the decision.
In an interview with SFGATE, he noted the tough competition within the craft beer industry and the high expense of the traditional steam brewing technique the company utilized.
“This isn’t a decision taken lightly,” Singer added, indicating the firm had likely been contemplating this step for a year.
Reinforcing the company’s precarious economic position on Wednesday, Singer said, “After careful evaluation over many months, we had no choice but to cease operations.”
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He acknowledged the importance of Anchor to San Francisco and the craft brewing sector but argued that the effects of the pandemic, inflation, and fierce competition left the company with no viable alternatives.
Founded in 1896 and recognized as America’s first craft brewery, Anchor Brewing was sold to Sapporo in 2017.
In the company’s press release, Anchor Brewing pledged to provide support packages to its outgoing employees.
The Anchor Public Taps taproom will stay open temporarily to sell the remaining inventory, and packaging and distribution of existing beer stock will continue until the end of July.
The company also revealed its unsuccessful attempt to find a buyer in the past year but remained hopeful that one might emerge during the liquidation process.
This closure is a stark indicator of the spiraling economic conditions in San Francisco, a city where business survival has become increasingly challenging.
Like many others before it, Anchor Brewing has fallen prey to a climate marred by the local government’s economic mismanagement.
It provides further evidence of a troubling pattern, as businesses in San Francisco continue to struggle or flee amid ongoing difficulties.
