Sapporo USA will close three Stone Brewing facilities in Escondido, Calif., as it retools its U.S. brewing operations after the sale of the Stone brand. The closures are expected to lead to about 220 job losses, with the first layoffs set to start in October.
A WARN notice filed with the state says the first round of layoffs will impact brewers, technicians and warehouse and logistics workers.
Sapporo earlier this year sold Stone Brewing to Firestone Walker, and is shutting down the Escondido facilities. The Japanese brewer bought Stone in 2022 for around $165 million, to help grow the distribution of its Sapporo brand in the U.S. using Stone’s existing brewing infrastructure.
But the market has been changing. Sales of Sapporo have been good, but demand for craft beer has weakened. Last year, production fell 4% in the craft brewing industry and 60% of breweries reported a decline in output.
As part of the restructuring, Sapporo is combining all of its U.S. brewing operations into one facility in Richmond, Virginia. The company said the sale of Stone to Firestone Walker will allow it to accelerate growth of its flagship Sapporo brand across the U.S. Walker is a subsidiary of Duvel Moortgat, the Belgian brewing group that also owns Duvel and Ommegang Brewery and Boulevard Brewing Company in the United States. Firestone Walker did not acquire the Escondido facilities in the Stone Brewing purchase.
Founded in 1996, Stone has emerged as an innovator in the West Coast-style IPA and one of the first to bring craft beer to the greater consumer base. When Sapporo purchased the company in 2022, Stone was the ninth-largest craft brewer in the United States and the largest craft brewer in Southern California.
