Anchor Brewing out of business: US’ oldest brewery unable to meet rising costs
14 Jul 2023 --- Anchor Brewing shut down its business after 127 years. The San Francisco-based brewer is exiting the market due to inflation, the effects of the pandemic and declining sales since 2016. The company is selling off its inventory and has given its employees a 60-day notice.
“Unfortunately, today’s economic pressures have made the business no longer sustainable, and we had to make the heartbreaking decision to cease operations. A buyer may step forward for the brewery as part of the liquidation process,” the company says.
“We recognize the importance and historical significance of Anchor to San Francisco and 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,” says Sam Singer, a spokesperson from Anchor Brewing.
The brewery was founded in 1896 and refers to itself as “the oldest brewery in the US.”
Progressive decline
There has been speculation about Anchor exiting in the last couple of years due to its decreased production levels on a year-by-year basis. In 2022, production declined to 65,000 barrels compared to the previous year’s 72,500.
The company remains optimistic about finding a buyer during the liquidation process, starting in July, even though it has previously been unsuccessful.
It was acquired by Japanese Sapporo in 2017 for US$85 million, and CNN reports that the company’s sales have declined since then.
Last year ahead of the soccer World Cup, there was a “major problem in brewing” as production costs increased right when demand was set to spike.
“During the COVID-19 crisis, supply bottlenecks and cost increases hit the brewing industry hard. But what is currently happening is beyond all dimensions. The cost increases for breweries have reached a level that threatens their existence. We are seeing unprecedented price increases for raw materials, packaging, energy and logistics,” Nina Göllinger, a spokesperson for German Brewers’ Association, previously told Food Ingredients First.
Additionally, as inflation and energy costs continued to rise, so did the production costs. The high prices carried on to 2023 for many manufacturers.
Edited by Beatrice Wihlander
