San Francisco-based craft brewery, Anchor Brewing Co., announced that it will be shutting down operations after an impressive 127 years in the industry. The company, known for its popular beer brands such as Anchor Steam, Old Foghorn, and West Coast IPA, has made the decision to initiate the assignment for the benefit of creditors (ABC) process, a form of bankruptcy. Japanese brewer, Sapporo Holdings Ltd., which acquired Anchor in 2017, has given its approval for the ABC.
The COVID-19 pandemic has had a significant impact on Anchor’s business, particularly in the San Francisco area, resulting in a substantial decline in sales. Despite implementing various strategies such as releasing new products, product renewals, and making brand investments in recent years, Anchor’s business performance continued to be sluggish.
“We have made every effort to improve our profitability, but it has become clear that long-term success is unlikely. Therefore, we have made the difficult decision to proceed with the ABC process,” stated Anchor Brewing Co.
Anchor Brewing Co. is scheduled to file its certificate of cancellation in July 2024. In terms of financials, the company recorded losses of $9 million on sales of $10 million in 2022, following losses of $9 million on sales of $12 million in 2021 and losses of $12 million on sales of $12 million in 2020. Net assets have dropped significantly to $3 million in 2022 from $13 million in 2021 and $35 million in 2020.
Sapporo Holdings Ltd. has expressed its intention to swiftly dispose of the assets categorized as part of the business to be disposed of. The Japanese brewer also anticipates recording losses of 6 billion yen (approximately $42.9 million) in 2023 as a result of Anchor’s ABC.
Looking to the future, Sapporo will shift its focus in the U.S., considered a growth driver, toward its collaboration with Stone Brewing Co. on Sapporo Premium Beer. The acquisition of Stone Brewing Co. took place in August 2022, marking Sapporo’s commitment to expanding its presence in the American market.
