Anchor Brewing Co., often touted as America’s first craft brewery, is closing up shop after 127 years.
The San Francisco-based brewery informed its 61 employees of the closure Wednesday morning, the San Francisco Chronicle reported. The company has already ceased brewing production at its Potrero Hill factory, but its taproom, Anchor Public Taps, will stay open until at least Aug. 1.
In a statement, Anchor spokesperson Sam Singer said the company was losing millions of dollars a year.
“We recognize the importance and historic significance of Anchor to San Francisco and to the craft brewing industry,” Singer said, “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.”
The writing seemed to be on the wall for Anchor, which was acquired by beer giant Sapporo in 2017. Last month, the company ceased production of its popular Christmas Ale and halted national distribution, limiting sales to California merchants.
In a statement, Anchor said it “made repeated efforts over the last year to find buyers for the brewery and its brands, but none have come to fruition.”
The brewery is liquidating its assets through a process called California Assignments for the Benefit of Creditors (CA ABC), which is designed to return money to investors quickly, instead of declaring bankruptcy.
“It is possible that a buyer will step forward for the brewery as part of the liquidating process. It is the hope of the Anchor team that such an outcome come to fruition,” the company said. “However, all decisions about the future will be in the hands of the independent, third-party CA ABC Assignee.”
Current and former workers told VinePair, an alcohol-focused news outlet, that Sapporo is to blame for the closure, saying the Japanese conglomerate was deferring important brewery maintenance, fighting the union that workers formed in 2019, spending money on expensive automation equipment and investing in a controversial rebrand of the iconic logo in 2021.
“I think Sapporo sunk Anchor,” Nate Dias, a former production worker, told VinePair.
Sapporo did not immediately return requests for comment.