Overview: Stone Brewing has announced plans to exit its three production facilities in Escondido, marking a significant shift for the craft beer pioneer. The company is moving operations to Paso Robles and Kansas City following a series of acquisitions and industry challenges. This transition involves substantial workforce reductions, with hundreds of employees set to lose their jobs.
The Full Story
Stone Brewing will be exiting its three locations in Escondido as the company moves production to Paso Robles in San Luis Obispo County and to Kansas City. The craft beer pioneer launched in 1996 in San Marcos and relocated to Escondido in 2006. According to a notification letter filed with the state, the company will first lay off 58 workers in late October before eventually axing a total of 220 employees.
Stone Brewing was acquired by Japanese beer giant Sapporo in 2022 to take on production of Sapporo beers in California for distribution across North America. The CEO of Sapporo USA, Zach Keeling, said the Escondido locations had to be closed because it has “not yet found a viable long-term solution” for the site. Stone Brewery was sold in May by Sapporo to Firestone Walker Brewing Company and Duvel Moortgat USA. In that deal, the buyers acquired the brand and some hospitality locations, but the announcement did not mention the Escondido sites.
Brand & Industry History
The company, which was buoyed by the West Coast craft brewing boom in the 2000s, was at one point the ninth largest craft brewery in the U.S. Stone Brewing launched in 1996 in San Marcos and relocated to Escondido in 2006.
What This Means
The dying hype around craft beer and the COVID-19 pandemic has since been a hit to the industry, which is facing a national trend of declining alcohol consumption. Stone Brewing will retain its distinct voice, joining a family of breweries that share a deep respect for beer tradition and culture.
Consumer Takeaway
One location in San Diego will still operate as both a hospitality destination and an active brewing facility, leaving at least some of Stone’s physical presence in the area.
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