San Diego’s largest craft brewer acquired by Belgian beer giant as industry future uncertain

Stone Brewing is on tap for yet another corporate shakeup — and this round comes with a chaser.

The California craft beer company is being sold for the second time in just four years and production in San Diego of the tasty hops which will eventually come to an end.

Belgian brewing heavyweight Duvel Moortgat USA and Firestone Walker Brewing Company have struck a deal to snag Stone from Sapporo Holdings, which only picked up the brand in 2022 for an estimated $168 million. 

The deal includes Stone’s three Southern California taprooms, brewery and restaurant in Liberty station in San Diego, the San Diego Tribune reported.

“The Liberty Station location will continue to operate as both a hospitality destination and an active brewing facility, maintaining Stone’s physical presence in San Diego,” the companies said in a news release. They also promised that “Stone Brewing will retain its distinct voice.”

A statement, from the Japanese beermaker said that, despite just acquiring the brand a few years ago, “total demand across the entire U.S. beer market trended downward, reflecting developments such as higher prices due to inflation and diversification of consumer preferences.”

“This declining demand was compounded by factors including increasing competition and higher costs, making the operating environment increasingly challenging.”

The company said that it will focus entirely on expanding the Sapporo brand itself, with it focusing on consolidating all its US beer production in its Richmond plant in Virginia, rather than the Escondido plant in San Diego County.

Production in San Diego will “cease manufacturing beer relating to the Sapporo and Stone brand” with an estimation of that happening “by the end of 2026,” per the announcement.

As far as when the San Diego plant will completely stop operating and what it will mean for those nearly 300 jobs, Zachary Keeling, the CEO of Sapporo-Stone Brewing USA, said they were currently trying to figure that all out.

“We’re in talks right now, continuing talks, trying to find an alternative of somebody to come in and take over the operations in Escondido,” Keeling told the Tribune.

“I can’t go into the specifics there. But we’re working on that, and that’s the next step in this overall transaction.”

In a joint new release, Stone, Duvel and Firestone said the agreement brings “one of America’s foundational craft breweries into a family of like-minded brewers,” according to the San Luis Obispo Tribune. 

Production of Stone Beer will be moved out of San Diego to the Firestone Walker Brewery in Paso Robles and Duvel’s brewery in Kansas City.

The company said it plans to hire “a significant number of Stone Brewing employees across hospitality, sales, and marketing, with production positions to be assessed as brewing operations transition to new facilities.”

Nick Firestone, CEO of Firestone Walker Brewing Company, told the outlet  “Stone is one of the most iconic brands in American craft beer and a pioneer of the West Coast IPA.”

Download The California Post App, follow us on social, and subscribe to our newsletters

“For 30 years, they’ve built something legendary, a brand known for its commitment to quality, drive for innovation, and a true fighting spirit.”

He added, “we will honor what’s been built and carry it forward with the same authenticity and conviction that we love them for. The Stone heart keeps beating.”

At the company’s peak, Stone’s production was at 400,000 barrels a year, but it now stands at 250,000, Firestone said.

In comparison, Firestone Walker’s production, which is also down from previous years, sits at around 450,000 barrels, the Tribune noted.

The Post reached out to Firestone Walker for further comment.