SAN DIEGO — Stone Brewing, San Diego’s largest craft brewer headquartered in Escondido, is being sold again to Firestone Walker Brewing Company and Duvel Moortgat USA, according to its subsidiary, Sapporo.
According to an announcement made on Tuesday, Sapporo Holdings Limited said that its Board of Directors has approved a major restructuring of its U.S. operations, including the transfer of intellectual property related to Stone Brewing, the sale of hospitality assets, and a consolidation of its production network. This deal is expected to close this summer.
This move comes as part of a broader strategy to focus its U.S. business on expanding the Sapporo brand and improving long-term profitability. A report released by Sapporo said that the overall demand in the U.S. beer market declined, driven by factors such as inflation-related price increases and shifting consumer preferences.
“This declining demand was compounded by factors including increasing competition and higher costs, making the operating environment increasingly challenging,” the report said. “Despite these conditions, however, the Sapporo brand’s sales have continued to grow robustly in the U.S. market.”
The company ultimately determined that focusing resources on its U.S. beer business centered on the Sapporo brand would support sustained growth and improved profitability. Since then, it has taken steps to reorganize its U.S. business structure and resource allocation.
As part of the restructuring, Sapporo will transfer intellectual property rights for the Stone brand and related hospitality assets, including bistros and tap rooms, to third-party buyers. The company will also consolidate its U.S. brewing operations around a single facility. The company’s plant in Virginia will become the primary production base for Sapporo brand products.
Meanwhile, the Escondido facility in California is expected to cease beer production for both the Sapporo and Stone brands by the end of 2026. Assets at the site, including equipment and building systems, will be reassessed based on future usability, according to the company.
From this transaction, Sapporo expects a gain of approximately $23 million from asset transfers.
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