Stone Brewing parent to cut over 200 jobs as Escondido headquarters closes
Sapporo USA will lay off 220 workers at three Stone Brewing locations in Escondido, California, as the company permanently shuts down the craft brewer's headquarters. The first wave of 58 layoffs is scheduled for Oct. 19, according to Worker Adjustment and Retraining Notification letters filed with the state.
News of the job cuts was confirmed in WARN notices obtained by SFGATE, which described the layoffs as expected to grow to more than 200 affected employees. The notices follow Sapporo's sale of the Stone Brewing brand and select hospitality locations to Firestone Walker Brewing Company and Duvel Moortgat USA, a transaction announced in April and closed May 15.
Stone beer production is transitioning from Escondido to Firestone Walker's brewery in Paso Robles, California, and Duvel USA's Boulevard brewery in Kansas City, Missouri.
A changing craft beer landscape
Stone Brewing, founded in 1996, grew to become one of the West Coast's most visible craft beer brands. At its Escondido headquarters, the company operated two 120-barrel brewing systems, a packaging hall, and a two-story restaurant with a 1-acre outdoor beer garden.
The shutdown reflects broader headwinds facing the craft beer industry. SFGATE noted that as enthusiasm for craft beer has waned and alcohol consumption has declined nationwide, the COVID-19 pandemic dealt another blow to Southern California's brewing community.
SFGATE described the sale as marking "the beginning of the end of what was one of craft brewing's greatest local success stories," while Stone Brewing grew into an "iconic fixture" of the West Coast industry.
What's included in the deal
The acquisition covered Stone Brewing World Bistro & Gardens at Liberty Station in San Diego, along with taprooms in Little Italy, Oceanside, and Pasadena. The Escondido brewery and bistro were not part of the transaction.
When the deal was announced, Sapporo said it would continue producing Stone beer at its Escondido and Richmond, Virginia, breweries during a transition period. The company also said it would continue operating the Escondido bistro while evaluating "long-term strategic options" for the site.
CEO: 'No viable long-term solution'
Sapporo USA CEO Zach Keeling told 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 property.
"This is an understandably difficult time for our Escondido employees and community, and we're committed to supporting them through this transition," Keeling said in a statement reported by the newspaper.
Job impact and transition plans
Firestone Walker and Duvel Moortgat USA said in April they expect to offer jobs to a significant number of Stone employees in hospitality, sales, and marketing roles. Production positions will be evaluated as brewing shifts to the companies' other facilities.
The first phase of layoffs affects warehouse, logistics, packaging, and quality assurance workers, as well as 11 brewers.
The job cuts come just over a year after Sapporo acquired Stone Brewing in 2022. The company has not announced plans for the Escondido site beyond winding down operations.
FOX Business reached out to Sapporo for additional comment on the total number of affected employees but had not received a response. SFGATE's request for comment from Stone Brewing had not been answered at the time of publication.