Skip to content
MarketScale
‹ Back to IndustriesFood & Beverage

The Last Of The Steam Breweries

The upcoming MarketScale ‘American Craft’ series is showcasing some of the nation’s top craft breweries to discover how they disrupted a market long dominated by international conglomerates. Our first multi-media installment takes a look at Anchor Brewing in San Francisco, Calif. Craft brewing in America is usually associated with the 21st century. New breweries open…

This story was produced through MarketScale. See how Food & Beverage teams put it to work with Customer Stories & Case Studies.

Share

Get featured

Want MarketScale to feature Food & Beverage?

Book a 15-minute demo and we'll map your Food & Beverage expertise to the content buyers are searching for.

Book a demo

The upcoming MarketScale ‘American Craft’ series is showcasing some of the nation’s top craft breweries to discover how they disrupted a market long dominated by international conglomerates. Our first multi-media installment takes a look at Anchor Brewing in San Francisco, Calif.

Craft brewing in America is usually associated with the 21st century. New breweries open every year and have given the industry a feeling of newness. However, the first beer pioneers started in 1896.

At the height of Gold Rush in San Francisco, what would become known as the Big Four Investors, Leland Stanford, Collis P Huntington, Mark Hopkins, and Charles Crocker started to build the market to support the influx of settlers trying to prosper in the American west. The future tycoons built rail roads and beer quickly followed.

“The brewers knew there would be a thirsty city and started brewing beer,” Anchor Brewing Brewmaster Scott Ungermann said.

The immigrants who followed the economic and industrial boom of California were by-and-large Germans that brought lager yeast. With refrigeration technology not yet available, early brewers needed a way to cool their wort rapidly and consistently. One of the ways they improvised was by rethinking the fermentation process. Instead of closed vertical containers, they designed big, shallow open coolships on top of rooftops, which let the ocean breeze do the work of cooling the beer. This process created an immense amount of steam which prompted the nickname, Steam Beer.

https://marketscale.com/wp-content/uploads/2018/07/Achor-2.webp

https://marketscale.com/wp-content/uploads/2018/07/Anchor.webp

https://marketscale.com/wp-content/uploads/2018/07/Anchor-3.webp

https://marketscale.com/wp-content/uploads/2018/07/Anchor-4.webp

https://marketscale.com/wp-content/uploads/2018/07/Anchor-5.webp

https://marketscale.com/wp-content/uploads/2018/07/Anchor-6.webp

https://marketscale.com/wp-content/uploads/2018/07/Anchor-7.webp

https://marketscale.com/wp-content/uploads/2018/07/Anchor-8.webp

https://marketscale.com/wp-content/uploads/2018/07/Anchor-9.webp

https://marketscale.com/wp-content/uploads/2018/07/Anchor-10.webp

https://marketscale.com/wp-content/uploads/2018/07/Anchor-Ferment.webp

At the turn of the 20th century, there were dozens of breweries in the Bay Area using this method to create beer. Prohibition naturally hindered the craft brewing industry even after its repeal. Ungermann says there are no records of Anchor producing any beer during the 14 years in which prohibition was in effect. Only seven local breweries survived the legislation that banned the sale of alcohol in the 1920s and early 1930s.

By 1965, Anchor Brewing was the last Steam Beer brewery on the West Coast, but Anchor was far from thriving. Anchor had briefly closed its doors in 1959 and was looking at another death.

“[The brewery was] down to 3 accounts in the city and only had double digits in the bank account,” Ungermann said.

The brewery had plans to close when across town at the Spaghetti Factory, Fritz Maytag (yes, that Maytag), was told by the bartender that he, “had been served his last Anchor Steam ever.”

Determined to save the brewery, Maytag went to Anchor the very next day to purchase the fledgling beer provider.

Throughout the 1950s and sixties, Anchor Brewing had built up an unfortunate reputation for being an inconsistent beer. Due to the lack of proper ownership, the brewery had fallen into bad habits of not cleaning its equipment thoroughly and not following proper procedure in the brewing process.

In response to this, Maytag put the beer under the microscope, literally.

“He very famously bought a microscope [he needed in order to] figure out what was going on with his beer, how was it fermenting,” Ungermann said.

“He got the beer right, that’s what he focused on first. He figured out the process and how to develop more consistency with the flavor of the beer and then he went out and sold the beer,” Ungermann said.

Maytag did not look to build out an extensive national network but instead wanted to build a larger, more loyal base in San Francisco and his improved product resonated. Anchor Steam started to garner a cult following as something different than what was dominating the market: light, “golden fizzy lagers” from the larger producers.

 “[Anchor Steam was] inherently different, it was still a lager but a more carameled color, a bit hoppier, a little more bitter, a little sweetness, a little bigger, all malt,” Ungermann said.

On MarketScale’s American Craft podcast, take a step into Anchor Brewing’s fermentation room and learn how a company twice on its deathbed has become among the largest and most profitable craft breweries in the world.

For the latest news, videos, and podcasts in the Food & Beverage Industry, be sure to subscribe to our industry publication.

Follow us on social media for the latest updates in B2B!

Twitter – @FoodMKSL

Facebook – facebook.com/marketscale

LinkedIn – linkedin.com/company/marketscale

Your experts belong here

Every story in MarketScale Food & Beverage starts with a company putting its plant managers, quality leads, and R&D teams on the record. Buyers are already reading this topic. The only question is whose experts they find.

Processors and grocery buyers vet suppliers hard, and your operations people are the ones who can satisfy them.

Get your team featuredSee how it works15 minutes, straight to a calendar.

Follow Food & Beverage Insights

Get new expert content in your inbox.

Food & Beverage: are you visible to AI?

Before they reach out, Food & Beverage buyers ask AI engines which vendors to trust. See how AI describes your company today, and where competitors show up instead.

Free workspace

You just read one Food & Beverage expert. Your company is full of them.

This article was produced through MarketScale. The same platform turns your plant managers, quality leads, and R&D teams into the articles, video, and social content Food & Beverage buyers are searching for. Create a free workspace and see it with your own people. No credit card, no demo required.

NPS +73 · 1,000+ creators · 38+ countries

What you get, free

Your own MarketScale Studio workspace
One video edit a month, on us
AI writing, editing, and publishing tools
In-platform coaching to learn the system

More Food & Beverage Insights

Rockstar Energy's Founder Builds a $300M Celsius Stake and Wants the CEO Job

Rockstar Energy's Founder Builds a $300M Celsius Stake and Wants the CEO Job

Russ Savage, founder of Rockstar Energy, has built a $300 million stake in Celsius Holdings and is publicly campaigning to replace CEO John Fieldly. Savage's push follows weak second-quarter results and centers on cutting management layers and preventing retail shelf-space losses in the energy-drink category.

  • 01Russ Savage controls 4.7% of Celsius Holdings (~$300M) and is advocating for CEO removal and his own appointment
  • 02Celsius second-quarter revenue missed expectations at $817.9M, with core brand sales down 12% and gross margin declining from 51.5% to 48.1%
  • 03Savage now contests a company controlling Rockstar (which he founded and sold to PepsiCo in 2020 for $3.85B), while PepsiCo holds 8.5% and distributor rights

Aug 7, 2026

What is a Frozen Carbonated Beverage

What is a Frozen Carbonated Beverage

Frozen carbonated beverages are a popular refreshing drink that combines carbonation with a slushy texture. These beverages are typically made by freezing sweetened flavored liquids like soda while adding carbon dioxide. They are commonly found in convenience stores and fast-food restaurants.

  • 01Frozen carbonated beverages combine carbonation with a slushy texture for a unique drink experience.
  • 02These beverages are made by freezing flavored drinks, typically sodas, while injecting carbon dioxide.
  • 03They are popular in convenience stores and fast-food restaurants.

Aug 6, 2026

Quick Service Restaurants

Quick Service Restaurants

The quick service restaurant (QSR) sector is evolving as it adapts to changing consumer preferences and advances in technology. These restaurants are focusing on speed, efficiency, and convenience to meet the demand for quick dining experiences. Innovations in ordering, payment systems, and delivery services are playing a crucial role in shaping the future of the industry.

  • 01Quick service restaurants are prioritizing speed and convenience to cater to customer demand.
  • 02Technological advancements in ordering and payment systems are transforming the QSR industry.
  • 03Delivery services are increasingly important for quick service restaurants to maintain competitiveness.

Aug 6, 2026

Explore More Food & Beverage Insights

Read more expert perspectives from across Food & Beverage.

Browse Food & Beverage Hub

For B2B teams

Your experts could be publishing here

Stories like this one run on content MarketScale captures from real practitioners. See how your team's expertise becomes coverage in Food & Beverage and beyond.

Book a 15-minute demo

Or call us. No forms required. We pick up. 214-945-2512