San Diego’s biggest craft brewery bought by Belgian beer company

Stone Brewing Undergoes Corporate Changes Again

Stone Brewing is undergoing yet another transformation, this time with a new buyer in sight.

The California-based craft beer company is being sold for the second time in just four years, and it appears that beer production in San Diego will wrap up soon.

Duvel Moortgat USA and Firestone Walker Brewing Company have reached an agreement to acquire Stone from Sapporo Holdings, which had purchased the brand in 2022 for around $168 million.

This deal includes Stone’s three taprooms in Southern California and the brewery and restaurant at Liberty Station in San Diego. Reports suggest that the Liberty Station location will still function as a brewery and hospitality spot, maintaining Stone’s presence in the area.

A statement from Sapporo noted that, despite the recent acquisition, the overall demand for beer in the U.S. is declining, citing inflation and changing consumer preferences as key factors.

The situation has been made worse by intense competition and rising operational costs, leading Sapporo to focus on expanding its own brand while consolidating beer production within its Richmond, Virginia facility. Consequently, the San Diego brewery will stop producing beer tied to the Sapporo and Stone brands by the end of 2026.

Zachary Keeling, CEO of Sapporo Stone Brewing USA, mentioned that discussions are ongoing regarding the timing of the San Diego plant’s shutdown and its impact on approximately 300 jobs.

He stated, “We’re trying to figure this out, and we’re looking for someone to take over the Escondido operations.”

In a joint press release, Stone, Duvel, and Firestone conveyed that the arrangement integrates one of America’s founding craft breweries into a collective of similar breweries. Production of Stone beers will be moved from San Diego to Firestone Walker Brewery in Paso Robles and Duvel Brewery located in Kansas City.

The companies indicated that there will be opportunities to hire many of Stone’s employees in new hospitality, sales, and production roles as the operations transition.

Nick Firestone, CEO of Firestone Walker Brewing Company, praised Stone as an iconic brand in American craft beer, particularly known for pioneering West Coast IPAs. He emphasized the commitment to maintaining Stone’s reputation and legacy.

Stone had previously achieved production levels of about 400,000 barrels annually but has since decreased to 250,000. In contrast, Firestone Walker has also seen a drop, producing around 450,000 barrels recently.