Anchor Brewing Company

Anchor Brewing Company
Company type	Private
Industry	Brewing
Founded	1896; 130 years ago
Founder	Ernst F. Baruth, Otto Schinkel, Jr.
Defunct	2023 (ceased operations)
Fate	Acquired by Hamdi Ulukaya in 2024 after closure and liquidation
Headquarters	San Francisco, California, United States
Area served	United States
Key people	Frederick Louis "Fritz" Maytag III (former owner), Hamdi Ulukaya (owner as of 2024)
Products	Beer, spirits (including steam beer, porters, barley wines, India pale ales, single malt rye whiskey, craft gins)
Parent	Sapporo Breweries (2017–2023)

Anchor Brewing Company was a brewery based in the Potrero Hill neighborhood of San Francisco, California. Established in 1896 by Ernst F. Baruth along with his son-in-law Otto Schinkel, Jr., the company underwent several ownership transitions before being acquired by Frederick Louis “Fritz” Maytag III in 1965. At that time, the brewery was on the verge of shutting down due to falling sales amid competition from larger beer producers. Since 1979, Anchor operated out of its Potrero Hill location and was recognized as one of the few remaining breweries producing steam beer, a style exclusively associated with the brand.

In 2010, The Griffin Group, an investment firm focused on alcoholic beverage brands, took ownership of Anchor Brewing, incorporating it into Anchor Brewers & Distillers, LLC. Seven years later, the company was sold to Sapporo Breweries for $85 million. While under Sapporo’s management, Anchor experienced marked declines in revenue and ultimately ceased operations in 2023, with plans to liquidate its assets.

After the closure announcement, employees sought to form a cooperative to purchase the brewery. Eventually, on May 31, 2024, Hamdi Ulukaya, CEO of Chobani, declared his acquisition of Anchor Brewing and its related assets, pledging to restore the brand and continue its production within San Francisco.

Origins

The origins of Anchor trace back to the California Gold Rush era when Gottlieb Brekle brewed steam beer in San Francisco. In 1896, Ernst F. Baruth and Otto Schinkel, Jr., his son-in-law, took over this brewery and established what became Anchor Brewing. The original plant was destroyed during the fires following the 1906 San Francisco earthquake but was rebuilt in 1907. Following the deaths of Baruth and Schinkel, Joseph Kraus and August Meyer managed operations until Prohibition forced a temporary shutdown. After Prohibition ended in 1933, Anchor restarted brewing at a new location; however, this facility was lost to fire in 1944. Kraus then reopened the brewery at another site that same year.

Although Anchor continued brewing through the 1950s, it faced challenges as consumer preferences shifted toward mass-produced beers. The U.S. brewing industry consolidated dramatically—from over 4,000 breweries at the beginning of the 20th century down to just 70 by the 1960s—leading to declining sales for smaller breweries like Anchor. This decline resulted in Anchor’s closure in 1959; however, Lawrence Steese purchased and reopened it at a different site in 1960.

Acquisition by Maytag

By 1965, under Steese’s ownership, Anchor Brewing suffered from deteriorating beer quality caused by insufficient brewing knowledge, outdated equipment, and poor sanitation practices. These issues harmed both its market reputation and distributor relations.

In that year, Frederick Louis "Fritz" Maytag III bought a majority stake—51%—in Anchor for a modest sum and completed full ownership by 1969. Through Maytag’s guidance and investment, the brewery began bottling steam beer along with other offerings such as Christmas ale by 1971. In 1979, he moved operations to a former coffee roasting facility located on Potrero Hill, which remains its base.

Maytag’s revival efforts required substantial capital beyond his inheritance from the Maytag Corporation. He taught himself brewing techniques from the ground up while upgrading equipment and improving cleanliness standards to consistently produce beer representative of California common beer, building upon Anchor’s historic steam beer tradition.

Prior to introducing bottled products, sales were confined primarily to draft beer served at roughly thirty local establishments. Production increased from approximately 800 barrels in 1969 to over 2,100 barrels by 1971. Initially, bottled beer was marketed in four-packs as a competitive alternative to standard six-packs available from mainstream brewers.

Expansion and advancement

Under Maytag's leadership, Anchor's steam beer secured a solid reputation within the San Francisco market, gradually broadening its reach. By the 1980s, the brewery experienced nationwide demand growth, establishing itself as a pioneer among microbreweries through consistent production of styles such as porters, barley wines, and India pale ales. This early success served as an inspiration for newer breweries like New Albion.

In 1989, Anchor crafted Ninkasi, a special edition beer inspired by a 4,000-year-old Sumerian formula, distinguished by its uncommon ingredients and sweeter profile compared to contemporary brews. That same year, after the Loma Prieta earthquake disrupted production of a batch, the resulting beer was released under the name "Earthquake Beer," further diversifying the company’s unique offerings.

The brewery expanded its operations in 1993 by opening Anchor Distillery on site, introducing single malt rye whiskey branded as Old Potrero. Subsequently, in 1997, it added craft gins including Junípero and Genevieve to its portfolio, marking a strategic move into the spirits market.

In 2010, ownership transitioned from Maytag to Keith Greggor and Tony Foglio, former executives from Skyy vodka, who intended to scale the business while maintaining its artisanal heritage. Three years later, in 2013, Anchor launched California Lager—a revival of an 1870s recipe—and announced significant expansion plans at Pier 48 to boost annual production capacity from 180,000 barrels to 680,000 barrels.

The brewery debuted its inaugural IPA in 2014, entering a new product segment. That year also witnessed the retirement of its winter seasonal Bock beer, which was succeeded in 2015 by Anchor Winter Wheat, reflecting ongoing innovation aligned with evolving consumer preferences.

Acquisition by Sapporo and union formation

Anchor Brewing’s acquisition by Sapporo Holdings in 2017 for $85 million marked a pivotal change in ownership and strategic direction. Despite Sapporo’s extensive global footprint, employee conditions and compensation at Anchor deteriorated, fostering dissatisfaction among staff. In response, workers including Brace Belden established an organizing committee in 2018 with support from the Democratic Socialists of America and pursued unionization through the International Longshore and Warehouse Union. Local establishments serving Anchor Steam Beer strongly backed this initiative.

By 2019, employees voted nearly two-to-one in favor of unionizing, making Anchor the first craft brewery in the United States to unionize—including its on-site brewpub Anchor Public Taps. The union agreement ratified in 2020 guaranteed improved wages, health coverage, and additional worker benefits.

On the threshold of its 125th anniversary in 2021, Anchor Brewing unveiled a comprehensive rebranding effort featuring updated logos and two-tone label designs—most of which had remained largely unchanged for decades. While intended to modernize the brand image, this redesign received mixed feedback from consumers.

Closure announcement

In 2023, negotiations for renewing the union contract stalled due to delays from Sapporo. Shortly thereafter, Anchor Brewing halted national distribution and discontinued its hallmark Christmas Ale.

On July 12, 2023, Sapporo declared it would shut down Anchor’s operations and liquidate the company. The decision was attributed to declining sales at restaurants and bars amid the COVID-19 pandemic’s impact, intensifying competition from local breweries, and shifting consumer tastes away from beer. Employees were issued a 60-day WARN notification. This closure prompted strong opposition from brewery workers, bartenders, and community members.

Sapporo indicated it had sought potential buyers before opting for closure and initiated an alternative liquidation process known as "Assignments for the Benefit of Creditors," which permits an assignee to oversee Anchor’s assets while exploring opportunities for new ownership.

Following the shutdown announcement, Anchor employees proposed purchasing the company as a worker-owned cooperative. However, in 2024, Anchor Brewing was acquired by Chobani’s founder and CEO who intends to restore its operations.

Acquisition by Chobani's Founder

On May 31, 2024, the brewery was purchased by the entrepreneur behind Chobani, who announced intentions to revive and reopen the establishment.

Discontinued Products

Anchor maintained a consistent lineup of seven beers available throughout the year, complemented by a variety of seasonal brews. In 2012, the brewery introduced the Zymaster series, which emphasized classic brewing techniques through limited-edition offerings.

Primary Beers

Name	Alcohol by volume	Style	First brewed
Anchor Steam	4.8%	Steam beer	1896
Anchor Small	3.3%	Small beer	1997 (Discontinued)
Liberty Ale	5.9%	American pale ale	1975
Anchor Porter	5.6%	Porter	1972
Old Foghorn	8–10%	Barley wine	1975
Brekle's Brown	6.0%	Brown ale	2010 (Discontinued)
Anchor California Lager	4.9%	American lager	2012
Humming Ale	5.9%	Export ale	2009 (Discontinued)
Anchor IPA	6.5%	India pale ale	2013
Our Barrel Ale	6.5%	Barrel-aged beer	2009

Seasonal Offerings

Name	Alcohol by volume	Style	Availability period	First brewed
Winter Wheat	7%	Wheat beer	Nov–Jan (Discontinued)	2015
Saison	7.2%	Saison	Feb–Apr (Discontinued)	2014
Summer Wheat	4.5%	Wheat beer	May–Jul (Discontinued)	1984
'BigLeaf Maple Autumn Red'	'6%'	'Red ale'	'Aug–Oct (Discontinued)'	'2013'	-	'Christmas Ale (Our Special Ale)'	'5–7%'	'Christmas beer'	'Nov–Feb (Discontinued)'	'1975'

Zymaster Collection

No. 1: California Lager
No. 2: Mark's Mild
No. 3: Flying Cloud San Francisco Stout
No. 4: Fort Ross Farmhouse Ale
No. 5: Harvest One American Pale Ale
No. 6: Saaremaa Ale
No. 7: Potrero Hill Sour Mash IPA
No. 8: Luxardo Cherry Ale

External links