Sapporo USA has notified California regulators that it will lay off 220 workers at Stone Brewing’s Escondido brewery, with the first 58 cuts scheduled for October 19, according to Worker Adjustment and Retraining Notification (WARN) letters filed with the state. The job losses mark the final phase of Sapporo’s exit from the craft beer brand it acquired in 2022, following the sale of Stone Brewing to Firestone Walker Brewing Company and Duvel Moortgat USA.
The transaction, announced in April and closed on May 15, transferred the Stone brand and select hospitality venues to the two buyers, but the Escondido brewery and its adjoining bistro were excluded. Sapporo had initially said it would continue brewing Stone beer at Escondido and its Richmond, Virginia, facility during a transition period while evaluating options for the property. That evaluation has now concluded, with Sapporo USA CEO Zach Keeling telling the Los Angeles Times that the company is winding down the Escondido brewery in phases after failing to find a “viable long-term solution” for the site.
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Production shifts to Paso Robles and Kansas City
Under the terms of the deal, Stone beer production is relocating to Firestone Walker’s brewery in Paso Robles, California, and Duvel USA’s Boulevard brewery in Kansas City, Missouri. The acquisition also included Stone Brewing World Bistro & Gardens at Liberty Station in San Diego, along with taprooms in Little Italy, Oceanside, and Pasadena. Firestone Walker and Duvel have said they expect to offer jobs to a significant number of Stone employees in hospitality, sales, and marketing, though production roles will be evaluated as brewing moves to the companies’ other facilities.
Keeling acknowledged the difficulty of the transition for employees and the Escondido community. “This is an understandably difficult time for our Escondido employees and community, and we’re committed to supporting them through this transition,” he said in a statement reported by the Los Angeles Times. FOX Business has reached out to Sapporo USA for comment on the total number of employees affected and any severance or support plans.
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End of an era for a craft beer pioneer
Stone Brewing was founded in Southern California in 1996 and became one of the most recognizable names in the West Coast craft beer movement, known for its aggressive IPA styles and its sprawling Escondido brewery and gardens. Sapporo acquired the company in 2022, but the Japanese beer giant has since refocused its U.S. strategy on its namesake lager, leading to the sale of the Stone brand this year.
The layoffs at Escondido reflect broader pressures in the craft beer industry, which has seen slowing growth and consolidation as consumer preferences shift. The closure of the Escondido production facility also marks a significant change for the local economy, where the brewery has been a major employer and tourist attraction since its opening in 2007.
Stone beer will continue to be sold under its new owners, with the Liberty Station location remaining both a hospitality venue and an active brewery, according to the acquisition announcement. The Escondido bistro will remain open for now, but Sapporo has not disclosed its long-term plans for the site.
For workers facing layoffs, the transition may offer some relief through potential hiring by Firestone Walker and Duvel, though production roles are less certain. The companies have said they will evaluate staffing needs as brewing ramps up at their existing facilities.
This story is developing, and FOX Business will update as more information becomes available.
