Stone Brewing, San Diego’s largest craft brewer, is changing hands again – San Diego Union-Tribune

In yet another milestone moment for San Diego’s largest craft brewer, Stone Brewing, a subsidiary of Sapporo USA, has reached an agreement to be acquired by Firestone Walker Brewing Company and Duvel Moortgat USA, a move that will mean the eventual end of widespread production in San Diego County.

The parties did not disclose the sale price.

The deal, announced Tuesday and expected to close this summer, will bring Stone’s beers, Liberty Station beer garden and several taprooms under the Firestone Walker Brewing Company umbrella while maintaining Stone’s brand and ethos. Not included are the Escondido brewing facility and bistro.

The deal aligns two established California craft brewers, both founded in 1996 and onetime rivals, within a challenging brewing environment that has been defined by declining volumes across the U.S. beer industry, including in the craft segment, along with a sustained trend of brewery closures.

Nick Firestone, CEO of Firestone Walker Brewing Company and the next head of Stone, acknowledged that his company and Stone have both experienced similar trends, most notably some decreases in production.

“I think if you talk to any brewer in the state, they would basically say the same thing,” he said. “So given the long litany of challenges, you’re seeing a lot of small brewers kind of team up, form joint ventures or consolidate production under a single brewery. I’m still a fundamental believer in beer, it’s been around for, for thousands of years and it’s going to stay. It’s also a core part of cultural dynamic and our fabric and we believe in California and investing here.”

As a plus, he noted that Stone IPA “is the first IPA I ever had, so I’ve known about Stone for a long time.”

“They’ve got an amazing reputation. I think we also have a great reputation for quality and freshness and consistency,” he said.

The deal advances a somewhat different trajectory for Sapporo, allowing the Japanese beermaker, which acquired Stone in 2022 for around $165 million, to match the San Diego company with another California brewery and prioritize its own namesake brand. That sale had come as a big surprise to the craft beer world given that Stone co-founder Greg Koch had vowed he would “never sell out.” But he also acknowledged at the time that a $464 million debt was coming due.

“The Sapporo brand has achieved over 30% growth in the U.S. over the last four years, reflecting growing momentum in one of the world’s most important beer markets,” Rieko Shofu, the executive vice president of Sapporo Holdings Limited, said in the news release. “We remain committed to continued investment in the U.S. as a cornerstone of our long-term global growth.”

Offloading Stone is a way to do that, while ensuring its future success, said Zachary Keeling, the CEO of Sapporo-Stone Brewing USA.

At the same time, though, Sapporo-Stone’s production now stands at about 250,000 barrels a year, Firestone noted, down from its peak of 400,000. (Firestone Walker’s annual beer volume is roughly 450,000 barrels, down from a few years ago.)

Nonetheless, Keeling believes the transaction makes perfect sense for Stone’s future.

“We think we found a great alternative with what Firestone and Duvel are going to do with the brand,” Keeling said. “I’m very confident in Stone’s future underneath their ownership. I think that there’s a lot of similarities into how they go to market, into their histories of craft, and plus, the big overarching Duvel global business is a great opportunity for Stone, as well,” he said.

Venues changing hands

Four Sapporo-Stone Brewing venues will go to Firestone as part of the transaction: its brewery and restaurant in Liberty Station and three taprooms: Little Italy, Oceanside and Pasadena. As well as the San Diego International Airport and Petco Park pubs.

“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.”

Stone’s Escondido brewing facility, which employs around 160 people, and the Escondido bistro, with around 140 workers, are not included.

Through the end of 2026 — the anticipated transition period after the deal closes — Sapporo USA will keep making Stone Brewing beers at both its Escondido and Virginia facilities and keep operating the Escondido bistro.

After that, Sapporo will keep using its Virginia brewery. What’s next for the Escondido brewery and restaurant is less clear.

“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 said. “I can’t go into the specifics there. But we’re working on that, and that’s the next step in this overall transaction.” One aim is to preserve those roughly 300 jobs, he added.

The companies shared several other details about how the acquisition will impact operations at Stone.

Duvel Moortgat, a Belgian brewer with a global portfolio of more than 20 brands, will distribute Stone beers east of the Rocky Mountains. Firestone Walker will cover distribution in the western U.S., including Texas, and for national accounts. Firestone Walker partnered with Duvel Moortgat in 2015.

Stone’s production will shift to Firestone Walker’s facility in Paso Robles — where Firestone is based — and Duvel USA’s brewery in Missouri.

“We’re not looking to, you know, just stamp my name on top of all their beers,” Firestone said. “What they’ve got is a really rich brand identity. It’s gargoyle, it’s bold. It’s got its own attitude. We’re looking to preserve that. And their location and Liberty Station is an homage to craft brewing. …  It’s just an amazing, amazing venue. We’re not looking to change it. We’re looking to step in and preserve it.”

Firestone Walker and Duvel USA plan 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,” the news release said.

While all parties to the sale were insistent on keeping the purchase price confidential, Firestone’s acknowledgment of Stone’s declining production since Sapporo acquired it suggests that the acquisition cost may have been less than $165 million.

The change in ownership comes at a time when the craft brewing industry is still regaining its financial footing following past years of meteoric growth. A recent annual report released by the Brewers Association concluded that the industry still faces some challenges, having experienced a 5.1% decline in production in 2025 amid broader softness in beer sales.

Stone’s production now stands at about 250,000 barrels a year, Firestone said, down from its peak of 400,000. Firestone Walker’s annual beer volume is roughly 450,000 barrels, down from a few years ago.

However, the report said, craft brewers slightly increased their market share and outperformed beer overall. Still, 60% of craft breweries reported production declines.

Stone wasn’t the first craft brewery in San Diego by any means, nor was it the first to brew strong, hoppy India Pale Ales that the region is known for.

But it was an early leader in brewing and bottling a high-powered West Coast-style IPA year-round. That move helped cultivate San Diego’s cachet as a hotspot for interesting craft beers, particularly IPAs.