The Battle to Save the Oldest Craft Brewer in the U.S.

Workers at Anchor Brewing Company, the oldest craft brewer in the U.S., hope to prevent the company from shutting down by buying it themselves, a union official said. 

The San Francisco-based brewer, founded in 1896, said last week it will close its doors after 127 years in business, citing economic pressures. Some of its unionized workers, however, want to keep the taps open by buying the company and making it an employee-owned business.

Pedro de Sá, business agent at International Longshore and Warehouse Union Local 6, which represents some of Anchor’s employees, sent a letter Wednesday outlining the proposal to the president of Sapporo USA, the brewery owner. 

“We are not asking for a handout or charity. All we want is a fair shot at being able to continue to do our jobs, make the beer we love, and keep this historic institution open,” said the letter, which was viewed by The Wall Street Journal. 

Local 6 didn’t specify how it would fund its proposed bid or how many of the brewery’s workers might participate. 

“The actual number is still in flux, as we are also hoping to reach out to the nonunion employees also. We have the vast majority of the union employees in the deal,” said de Sá.

Some craft brewers have struggled in recent years to stand out in an increasingly crowded market. Anchor stayed open while breweries opened across the country to capitalize on growing interest in craft beer. The company said its sales have declined since 2016.

Sapporo USA didn’t respond to requests for comment. Sapporo Holdings Ltd , a Japanese beer company, acquired Anchor in 2017 for around $85 million. 

Sam Singer, a spokesman for Anchor, said roughly two dozen investors and individuals have expressed interest in buying all or some of the assets of the craft brewery, which traces its roots to the California Gold Rush. 

The company is negotiating to have its assets assigned to a liquidator to pay off creditors, he said. The liquidation process is due to start Aug. 2, the union said. 

“We remain hopeful that Anchor will be purchased and continue into the future,” said Singer. The final decision will be made by the liquidator, he said.

The timeline means the union is under pressure to get a strategy and financing lined up, said Trevor Gilmore, chief operating officer of the Menke Group, a financial firm that specializes in employee ownership transitions.

Outright ownership isn’t the only option for Local 6 members, he said. The workers could potentially bid on key assets in liquidation—such as the physical Anchor building, as well as its brand—and then relaunch from there, he said.

Anchor is set to sell its last beer on July 31, according to its website.

Local 6’s purchase offer was earlier reported by VinePair, an outlet that covers wine, spirits and beer industries.

Unionized workers at Anchor shared the story on social media and added their own message. “Time to put everyone’s love of this brand to the test. Let’s work this out together and bring back what we’ve almost lost,” they wrote. 

Anchor said in its closure announcement last week that employees were given 60 days notice and will receive severance packages “in line with company practices.”

Many craft breweries that have transitioned to employee ownership in recent years have found success, said Corey Rosen, founder of the National Center for Employee Ownership, a nonprofit research organization.

Of the top 25 craft brewers by volume in the U.S., six are employee-owned, he said, including Harpoon, Great Lakes Brewing and Rhinegeist.

Most, if not all, local breweries that have been sold to workers have been privately owned, he said. Those owners wanted to keep their businesses in employee hands, and transitioning to employee stock ownership plans, or ESOPs, gives both sides significant tax breaks, he said.

Sapporo, a publicly traded company, wouldn’t get those same tax benefits. Under American law, a public company also has an obligation to get the best deal possible for shareholders, he said.

Anchor workers need to consider the company’s viability and the long-term costs of acquiring and running it, as well, Rosen said.

“They need to be very businesslike about it,” he said. “They need to really ask themselves, ‘Can we make money on it?’ If the answer is no, then it’s probably not a good idea.”

Local 6 said in its letter that it hoped Sapporo USA would let workers know by Friday if the bid would be considered. The union said it would need time to create an employee-owned framework and raise necessary funds, as well as access to internal company information. 

“We do not want the brewery and brand we love to be sold off before we even had a chance,” the union wrote.

—Alyssa Lukpat contributed to this article.

Write to Talal Ansari at [email protected] and Ginger Adams Otis at [email protected]