The oldest craft brewery in the United States is shutting down after 127 years

Pour one out for Anchor Brewing: America's oldest craft brewer is shutting down after 127 years in business.

The San Francisco-based company announced Wednesday it's ceasing operations and liquidating the beloved business "following a combination of challenging economic factors and declining sales since 2016," a press release said. Craft brewers, in particular, have been struggling for a variety of reasons including changing consumer habits, rising costs and lingering supply-chain challenges.

Another problem has been Sapporo, the Japanese beer company that bought the brand in 2017. Employees complained to VinePair last month about Sapporo's alleged mismanagement and lack of understanding of craft beer in the US. In addition, a 2021 rebrand of Anchor was also criticized for pivoting too far away from the brand's classic look.

"This was an extremely difficult decision that Anchor reached only after many months of careful evaluation," said Anchor Brewing spokesperson Sam Singer. He added that 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."

Workers at Anchor, which employs 61 people, were given a legally mandated 60-day notice Wednesday and will receive "transition support and separation packages." Brewing has stopped immediately and beer on hand will still be sold through the end of July.

Last month, Anchor cut national distribution, limiting its sales to just California, and announced it was ending production of its fan-favorite Christmas Ale after nearly 50 years in production. (A "small volume" of its Christmas Ale is now being sold at its tap houses until it runs out.)

Anchor said that those decisions were made to "reduce costs while final attempts were made to evaluate all possible outcomes," however, "in the end, expenses simply continued to outstrip revenues, leaving the company with no other viable choice."