Last Wednesday was a sad day for the 61 members of staff who called Anchor Brewing their workplace, and for craft beer geeks who've enjoyed Anchor Brewing's Steam Beer over the years.

The San Francisco heavyweight that's been around since 1896 has just called last orders. For good. Talk about the end of an era! The iconic Californian brewery had been operating for 152 years, surviving two world wars, the Great Depression and the Great Recession. Unfortunately, the management claims, it would be competition from similar beverages and losses from COVID-19 that would sound the death knells for the brewer.

Anchor Brewing was the original rebel, the maverick that made craft beer cool way before American hipsters picked up their first IPA. It's the brand that gave us the Anchor Steam Beer and inspired a nation of beer lovers to demand something more from their pint glass. The Anchor Steam Beer is the company's flagship product, considered a historic American beer and has played a crucial role in the American craft beer revolution. The term "steam" is a nickname for beer brewed on the West Coast of America under primitive conditions and without ice. This style of beer has even been officially recognised, with the name "steam beer" becoming the trademark of Anchor Brewing.

In 2017, Anchor Brewery was acquired by Tokyo-based Sapporo Holdings. Certain things began to change, and not everyone was happy about them. Case in point: the rebrand in 2021 that saw Anchor's old-school, beloved label get the boot for something that resembled IKEA's logo. This classic label had been largely unchanged since the 1970s. Unfortunately, many craft beer enthusiasts felt that the new one didn't really hit the mark. 

Fast forward to now, 2023. Anchor Brewing's saying goodbye. Last year, they sold $10 million in beer but had a whopping $9 million in operational losses. They had only churned out 35,000 barrels of beer which pales in comparison to their sister company, Stone Brewing, which was filling up 376,000 barrels.

Last Wednesday, Anchor Brewing ceased all brewing operations at their Potrero Hill plant. It would be selling off its remaining stocks over the next months. 

Anchor's spokesperson, Sam Singer admitted that the thriving local craft scene in San Francisco didn't do them any favours. Competition also came from the surge in popularity of hard seltzers and liquor, plus the COVID-19 pandemic that decimated sales in bars and restaurants where Anchor sold 70% of their beers.

Fingers were pointed at Sapporo USA

What was left unsaid was that Anchor's journey since being acquired by Sapporo in 2017 had been fraught with challenges. The top management and unionised workers constantly locked horns, and also fought over employee contract terms for most of 2019.

Many workers of Anchor Brewing also attribute the demise of the historic brewer to strategic missteps by its parent company, Sapporo USA. The most visible example of a misstep was the radical rebranding that replaced Anchor's old-school, beloved label for a minimalist one that drew wide ridicule and disappointment from customers on social media.

The parent company's lack of understanding of Anchor Brewing's products and processes was also revealed when Sapporo tried in vain to brew Sapporo's rice lager out of Anchor Brewing's incompatible facilities. They were focused on open ale fermentation.  

Workers also criticise the management's delay of necessary plant maintenance, and the irregular production schedules which resulted in inefficiencies.

While it's a sad week for fans and workers of Anchor Brewing, beers produced by its sister company Stone Brewing, would not be going anywhere. Sapporo USA and Stone Brewing expressed that they will will continue to forge ahead with their expansion and growth plans.

The loss of Anchor Brewing is a poignant reminder of the changing dynamics of the craft beer industry and the challenges it faces. The wider beer community will undoubtedly pause to acknowledge the remarkable journey of a brewery that defined craft beer in America. So, here's to Anchor Brewing - you will be missed. Now, let's all raise a glass to the good times.

Kanpai!

88 Bamboo Editorial Team