America’s first craft brewery is shutting is doors after more than 120 years in business.
Anchor Brewing Company announced Wednesday morning it is ceasing operations and liquidating the business, citing persistent inflation and an overly competitive beer industry.
Spokesman Sam Singer told the San Francisco Chronicle the company was ‘losing millions of dollars a year’ and ‘economic pressures have made the business no longer sustainable.’
But its closure comes as the Bureau of Labor Statistics reports that inflation actually slowed in June, growing by just 0.2 percent.
The brewery is now just the latest retailer to close its doors in the crime-ridden city, where thefts often go unpunished.
Anchor Brewing Company announced on Wednesday it is closing its doors after more than 120 years in business in San Francisco
Company executives cited persistent inflation and an overly competitive beer industry for the historic brewery’s closure
The Anchor Brewing Company was founded during the height of the Gold Rush in California in 1896. Its original building is pictured here
The Anchor Brewing Company was founded during the height of the Gold Rush in California in 1896 and advertises itself as America’s first craft brewery.
But it has struggled for years to make ends meet, and was saved from bankruptcy in 1965 by its longtime owner Fritz Maytag.
By 2017, the brewery was sold to Japanese beer maker Sapporo, but Singer said it was already ‘in the red’ at the time.
He said revenue at the brewery was down by two-thirds since 2016, noting that the pandemic was especially difficult for the company, which sells much of its ales at bars and restaurants.
To cut costs, Anchor announced last month that it would limit its distribution to just California and axed one of its most popular beers.
‘The inflationary impact of product costs in San Francisco is one factor,’ Singer told the San Francisco Gate at the time. ‘Couple that with a highly competitive craft beer market and a historically costly steam brewing process.
‘[They’ve] probably been mulling over this decision for a year,’ he said of the owners. ‘It’s not something they take lightly.’
He reiterated those pressures in a statement announcing the closure of the brewery on Wednesday.
‘This was an extremely difficult decision that Anchor reached only after many months of careful evaluation,’ Singer said.
Anchor Brewing advertised itself as America’s first craft brewery, using a steaming process
The Anchor Public Taps room on De Haro Street (pictured) will remain open temporarily to sell the remaining inventory
Anchor will also continue to package and distribute beer on hand through the end of the month
‘We recognize the importance and historic significance of Anchor to San Francisco and to 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.’
Attempts over the past year to find a new brewer to take over the company have been unsuccessful, he noted, and the company will now provide its 61 employees with transition support and separation packages.
Meanwhile, the Anchor Public Taps room on De Haro Street will remain open temporarily to sell the remaining inventory.
Anchor will also continue to package and distribute beer on hand through the end of the month.
The brewery is now just one of more than a dozen stores in San Francisco to close its doors after Old Navy executives announced in May that it would shutter its flagship store in the downtown area.
A spokesman for parent company Gap Inc., which is headquartered just three miles away from the closing store, told the New York Post: ‘Old Navy is always evaluating its real estate portfolio to ensure a healthy fleet of stores that can provide the best possible experience for our customers.
‘Since our Market Street store opened in the 1990s, the way we leverage flagship locations has changed.’
He added that the firm has ‘deep roots’ in San Francisco and is ‘committed to the city.’
The closure forms part of Gap’s cost-cutting reorganization which will see 1,800 jobs axed in total – saving up to $300 million.
In April, Banana Republic – which is also owned by Gap – announced it was shuttering a location in San Francisco’s Westfield mall.
Just a few doors down in the same center, upscale retailer Nordstrom is also preparing to shut down – causing a total of 379 job losses. Its nearby outlet store Nordstrom Rack will also close.
Announcing the closure, chief stores officer Jamie Nordstrom said: ‘As many of you know, the dynamics of the downtown San Francisco market have changed dramatically over the past several years, impacting customer food traffic to our stores and our ability to operate successfully.’
Meanwhile Westfield Mall bluntly told the Washington Post, rising crime was creating ‘unsafe conditions for customers, retailers, and employees.’
Stores across the county have fallen victim to a so-called ‘retail apocalypse.’ sparked by a perfect storm of high inflation, surging crime rates and low footfall.
But the closures have disproportionately affected San Francisco where crime has spiked in recent months due, in part, to a state-wide shoplifting law that downgraded stealing goods worth less than $950from a felony to a misdemeanor.
DailyMail
