America's oldest craft brewery, Anchor Brewing, shuts down after 127 years

Anchor Brewing, America's oldest craft brewery, announced that it will be shutting down after 127 years in operation. 

The San Francisco-based beer-maker, known as the "godfather" of the craft beer movement, cited declining sales as the primary reason for its closure. Despite efforts by Japanese brewing company Sapporo, which purchased Anchor Brewing in 2017, the brand could not be revived. The closure of Anchor Brewing reflects the challenges faced by craft beer distributors in the wake of the pandemic, as consumer habits have shifted and smaller breweries have been acquired or forced to cease operations. 

In a statement, Anchor Brewing spokesperson Sam Singer acknowledged the historic significance of Anchor to San Francisco and the craft brewing industry. Singer attributed the closure to the impacts of the pandemic, inflation, and intense competition in the market. The company's sales heavily relied on bars and restaurants, which suffered greatly during the pandemic. This, combined with changing consumer preferences, led to a significant decrease in sales.

Garrett Oliver, brewmaster of Brooklyn Brewery, mourned the loss of Anchor Brewing and highlighted its pivotal role in the American craft brewing scene. He described Anchor Brewing as the "grandfather" of all American craft brewing, inspiring countless brewers and revolutionizing the industry.

Anchor Brewing had a long and storied history, surviving the 1906 San Francisco earthquake and the prohibition era. Under the ownership of Fritz Maytag in 1965, the brewery gained popularity with its pale ale and Christmas ale, contributing to the rise of specialty beers. Despite its resilience, the company struggled financially in the 1960s and faced a similar fate before Maytag's intervention.

Craft beer sales accounted for just over 13% of the beer market in the US last year, but the industry as a whole has faced challenges due to the rise of pre-packaged cocktails. Anchor Brewing's closure highlights the financial pressures faced by small independent breweries in the changing market landscape.

Anchor Brewing's closure comes as a blow to the craft beer industry and leaves a void in the American brewing landscape. While the company has ceased beer production, it will continue packaging and distributing its remaining inventory until the end of July. The hope remains that a buyer may step forward during the liquidation process, allowing Anchor Brewing's legacy to continue.