Historic craft brewery plans reopening after bankruptcy filing

Iconic craft brewer gets new life as a billionaire's family office buys the closed brewery vowing to reopen it.

Jun 4, 2024 - 10:30

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Historic craft brewery plans reopening after bankruptcy filing

The U.S. craft brewery industry has been growing at a feverish pace over the last 10 years.

The number of craft brewers in the U.S. has more than doubled from about 4,803 in 2015 to roughly 9,761 in 2023, according to the Brewers Association. With the spike in brewer openings, craft brewer closings have also increased.

The amount of craft brewery closings in the U.S. hovered between 44 and 68 annually from 2008 to 2015, but the industry began seeing sharper increases each year from 2016 through the Covid-19 pandemic of 2020, according to Statista. Data showed a steady increase with 97 craft breweries closed in 2016, 165 in 2017, 219 in 2018, 294 in 2019 and 346 in 2020.

Government stimulus programs eased the rate of closings in 2021 as the amount dropped to 178, before spiking again to 319 in 2022, Statista reported. The industry continued its distress in 2023 with 418 closings, according to the Brewers Association.

The fallout from the Covid-19 pandemic and increased competition from the rise in brewery openings led to distress among craft breweries. Financial hardship caused many breweries to file Chapter 11 bankruptcy reorganization or, in extreme cases, Chapter 7 liquidation.

A string of craft brewery bankruptcies in 2024 began in January as Zydeco Brew Works in Ybor City, Fla., filed Chapter 11 in the U.S. Bankruptcy Court for the Middle District of Florida and closed its main brewery and restaurant location on 7th Avenue in Tampa, Fla.

Another craft brewer, Forgotten Boardwalk Brewing of Cherry Hill, N.J., also filed Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey and shut down in January after losing its lease.

Tampa craft brewery and coffee shop King State in February filed Chapter 11 after suffering financial distress caused by city infrastructure work that disrupted the company's business, and 7 Mile Brewery of Rio Grande, N.J., in late February filed for Chapter 11 protection in February before closing its doors permanently in May.

In March, Roth Brewing Company of Raleigh, N.C., filed for a Subchapter V Chapter 11 bankruptcy to reorganize and in May, Harrisburg, Pa., craft brewer SpringGate Vineyard's owner Schoffstall Farm filed for Chapter 11 protection in U.S. Bankruptcy Court for the Middle District of Pennsylvania to reorganize.

These bankruptcy filings follow another list of craft breweries filing for Chapter 11 or Chapter 7 in 2023, including Denver's Joyride Brewing in November and Pennsylvania brewer Flying Fish Brewing Co. and Colorado's Guanella Pass Brewing, which both filed Chapter 11 in December 2023.

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The grandaddy of all craft brewers, San Francisco's Anchor Brewing, which was established in 1869, was one of the best known and highly regarded independent craft breweries for decades, but things went south after Japan-based brewer Sapporo Holdings Limited purchased the company in August 2017 for $85 million.

America's first craft brewer reportedly had production issues, and a January 2021 rebranding of the company from its classic red banner and blue anchor logo to a new yellow and blue one failed. The company said that it would cease national sales in June 2023, a month before filing Chapter 11 in July 2023 and shutting down operations.

Initially, it looked like Anchor's assets would be liquidated with the company's brewery and equipment sold off and the iconic company fading away into history.

Cans of Anchor Steam beer are displayed on July 12, 2023 in San Anselmo, Calif. (Photo Illustration by Justin Sullivan/Getty Images)
Justin Sullivan/Getty Images

Anchor Brewing will reopen after acquisition

But about 10 months after Anchor filed for bankruptcy, Shepherd Futures, the family office of Hamdi Ulukaya, billionaire founder and CEO of Chobani yogurt, on May 31 revealed in a statement that it was going to purchase all of Anchor Brewing's assets and would relaunch the brand. The sale price has not been disclosed.

"What an exciting time for San Francisco and Anchor Brewing," Ulukaya said in a statement. "Both are experiencing the magic of rebirth. I have fallen in love with this city, its history, grit and charm. I believe brands born in places like this are incredibly special and must be treasured, respected and loved.

“San Francisco is at the heart of Anchor Brewing, and Anchor embodies so much of what makes this city great. I am humbled and excited to be part of this city and its rich community of people, who have a spirit that is special and unique. I have learned so much about Anchor and its role in San Francisco’s journey, and I look forward to doing whatever I can to support this amazing story of revitalization.”

Shepherd Futures did not reveal a time frame for the relaunch of Anchor Brewing.