Anheuser-Busch to Close Fairfield Brewery in February, Citing National Production Realignment

Fairfield, California — February 5, 2026 — Anheuser-Busch, the nation's largest beer producer, is set to permanently close its longstanding brewery in Fairfield later this month, marking the end of nearly 50 years of operations at the site and affecting approximately 238 local employees.

The facility at 3101 Busch Drive, which opened in 1976, will cease production between February 9 and February 22, 2026, according to a Worker Adjustment and Retraining Notification (WARN) filing and statements from the company and city officials. The closure is part of a broader restructuring of Anheuser-Busch's U.S. manufacturing network. The company is also closing a brewery in Merrimack, New Hampshire, and selling its facility in Newark, New Jersey, with production from all three sites shifting to other existing U.S. plants, including the remaining California brewery in Los Angeles.

In a statement provided last December, Anheuser-Busch described the changes as enabling further investment in its remaining operations and growing brands following a multi-year modernization effort that included nearly $2 billion invested across its U.S. facilities. The company has offered affected employees—totaling about 475 across the three sites—opportunities for transfers to other locations or severance packages.

Fairfield officials expressed disappointment over the announcement, which came without significant prior notice. Mayor Catherine Moy described it as a "massive layoff" with economic ripple effects, including an estimated loss of around $1.2 million in annual water revenue (as the plant is the city's largest water user) and up to $559,000 in property tax revenue, depending on future site use. The city has mobilized support through the Solano County Workforce Development Board for job search assistance, retraining, and evaluation of redevelopment options for the property.

The Fairfield closure occurs amid ongoing discussions about California's business climate. While some observers link departures and closures to high taxes, regulations, and operational costs, Anheuser-Busch has framed its decision as part of a national optimization strategy rather than state-specific factors. The company noted its long history in California, including more than $2.6 billion in capital investments over seven decades.

Broader data from the Public Policy Institute of California indicates that headquarters relocations represent a small fraction of overall business activity in the state—about 3% of firms relocated out in 2025, with net headquarters losses historically around 1.9% over a decade (2011–2021). However, high-profile moves in recent years, including Chevron's headquarters shift from San Ramon to Houston in 2024–2025, Playboy's relocation from Los Angeles to Miami Beach in 2025, and announcements involving companies like Realtor.com and John Paul Mitchell Systems, have fueled debate over the state's economic environment.

California continues to lead the nation in net out-migration of residents, according to sources like U-Haul tracking data, primarily driven by housing costs and living expenses rather than solely business factors. State leaders and analysts emphasize that California retains major innovation hubs in tech and other sectors despite these trends.

No immediate plans for the Fairfield site's future use have been announced, though city officials are actively exploring redevelopment opportunities.

California has experienced a notable business exodus in recent years, including into 2025 and early 2026, characterized by high-profile company headquarters relocations, facility closures, and production consolidations. This trend is often attributed to factors like high taxes, strict regulations, elevated operational and living costs, housing affordability issues, and a perceived unfavorable business climate (e.g., California ranks near the bottom in business tax climate indexes).While critics highlight dramatic departures and link them to state policies, data from sources like the Public Policy Institute of California (PPIC) indicate that the overall scale of headquarters relocations remains relatively small in percentage terms compared to total business activity—though larger firms are more prone to leave, and the trend has accelerated in recent years.Key Statistics and TrendsAccording to a 2025 PPIC report, about 3% of California businesses relocated out of state in 2025.

Historically (2011–2021), net headquarters losses were around 1.9% (789 out of over 47,000 headquarters), resulting in a loss of roughly 77,600 headquarters-related jobs. Annual outflows trended upward, with 147–213 headquarters leaving per year in that period.

Broader economic impacts include job losses, reduced tax revenue, and concerns over innovation and payroll shifts, particularly as companies move to states like Texas, Florida, Arizona, Nevada, and Tennessee.

Population and migration data (e.g., U-Haul reports) show California leading the U.S. in net out-migration for six straight years through 2025, with hundreds of thousands leaving annually—driven primarily by cost of living rather than just business factors.

Notable Companies and Moves (Focusing on 2025–2026)High-profile examples often fuel public discourse:Chevron — Relocated corporate headquarters from San Ramon, CA, to Houston, Texas (announced in 2025).

In-N-Out Burger — Announced plans to relocate operations or key aspects to Tennessee (2025), citing family and business challenges in California.

Playboy — Moved from Los Angeles to Miami, Florida (2025).

Realtor.com — Shifted headquarters from Santa Clara to Austin, Texas (2025).

John Paul Mitchell Systems (haircare) — Relocated to Wilmer, Texas (2025).

Anheuser-Busch — Closed its Fairfield, CA, Budweiser brewery in early 2026 (last operations around February 22, 2026), affecting ~200–238 employees (part of a national modernization; production shifted elsewhere, with offers for transfers or severance). This was one of three U.S. facility changes (others in NH and NJ).

Other mentions include consolidations or closures like Blue Diamond Growers (Sacramento plant closure by 2026–2027, shifting to other CA sites) and various retail/insurance exits.

Earlier but influential departures (often referenced in ongoing discussions) include Tesla, Oracle, Hewlett Packard Enterprise, Charles Schwab, SpaceX, and X (formerly Twitter)—many to Texas.Broader Context and DebatesCauses — Commonly cited: High state taxes (California ranks 49th in business tax climate), regulations, labor costs, housing, and public safety/homelessness concerns. Proposed policies like a "billionaire wealth tax" (discussed for 2026) drew warnings of accelerated exits from some investors and executives.

Counterpoints — Some analyses (e.g., PPIC, CalMatters) argue the "exodus" narrative is overstated—headquarters losses are a small fraction of overall business dynamics (more openings/closures occur internally), and California retains strong tech/innovation hubs. Population outflows affect middle-class taxpayers more than just billionaires.

Economic ripple effects — Losses in tax revenue, jobs, and local economic activity (e.g., Anheuser-Busch closure projected ~$1.2M water revenue and up to $559K property tax hit for Fairfield). Some predict 2026 could worsen amid budget deficits and policy debates.

This pattern reflects a mix of corporate cost-cutting, modernization, and state-specific challenges, with Texas emerging as a top destination for relocations.