San Diego's Stone Brewing sold, beer production moving out
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Sapporo USA is selling San Diego's Stone Brewing. Photo: Kevin Carter/Getty Images
San Diego's largest craft brewer, Stone Brewing, and its local taprooms are being sold again.
Why it matters: The sale of the iconic brand means most production of the locally beloved beers will move outside of San Diego County — another sign of the once-booming craft beer industry shifting under financial strains.
State of play: Japanese beer brand Sapporo, which acquired Stone in 2022, is selling it to Firestone Walker Brewing Company and Duvel Moortgat USA for an undisclosed amount, the companies announced Tuesday.
- Stone's World Bistro & Gardens at Liberty Station, and tap rooms in Little Italy, Oceanside and Pasadena, plus pubs at the airport and Petco Park are included in the sale. The Liberty Station location will also continue brewing beer.
- Other production of Stone beers will shift to Firestone Walker's brewery in Paso Robles, and Duvel USA's Boulevard brewery in Kansas City, Missouri.
- Sapporo expects to save around $23 million by selling off Stone and its California taprooms.
"It's a win-win," Sapporo-Stone Brewing CEO Zachary Keeling told Axios. "Stone is going to find a home with Firestone Walker and Duvel that really aligns with the brand and this great steward for their future."
Stone's Escondido brewing facility and bistro, which employ about 300 people, are not part of this sale.
- Sapporo will keep brewing Stone beers in Escondido through the end of this year, per the Union-Tribune, but the company is "evaluating long‑term strategic options" for the local brewery and restaurant.
- Sapporo recently invested $20 million upgrading the Escondido facility to help double its production capacity.
- But now, Sapporo is looking at options for someone else to take over operations in Escondido, and is expecting job losses there, Keeling told Axios.
The big picture: The craft beer market is on a historic decline, with production down 5% year-over-year and brewery closings outpacing openings across the U.S., according to the Brewers Association.
- San Diego County's craft brewery industry has been shrinking for years, as beer sales drop and less Americans are drinking alcohol.
- Firestone Walker Brewing Company is one of California's largest craft breweries, but has also seen a recent drop in sales and production.
What we're watching: Firestone Walker and Duvel USA plan to offer positions to Stone employees in hospitality, sales, and marketing, and will assess production jobs as brewing operations transition to new facilities, per the companies.
What's next: The deal is expected to close at the end of May, Keeling said.