Stone Brewing will close its Escondido production facilities and lay off a significant portion of its workforce as it moves operations to Paso Robles, California, and Kansas City. The company plans to lay off 58 workers in late October, with a total of 220 employees eventually losing their jobs.
The Escondido locations have been a fixture in Southern California since Stone Brewing relocated there in 2006, having originally launched in San Marcos in 1996. The move comes after the Japanese beer giant Sapporo acquired Stone Brewing in 2022, intending to utilize its facilities for Sapporo beer production in North America. Zach Keeling, CEO of Sapporo USA, cited a lack of a "viable long-term solution" for the Escondido sites as the reason for their closure.
"This is an understandably difficult time for our Escondido employees and community, and we’re committed to supporting them through this transition," Keeling stated.
In a subsequent development, Sapporo sold Stone Brewing in May to Firestone Walker Brewing Company and Duvel Moortgat USA. While the acquisition included the Stone Brewing brand and some hospitality locations, the announcement did not explicitly mention the fate of the Escondido sites at that time. The new ownership expressed a commitment to preserving the brand's distinct identity within their portfolio of breweries.
Despite the production closures, at least one Stone Brewing hospitality and brewing facility will remain operational in San Diego. The craft beer industry, which experienced a boom in the 2000s, has faced challenges including declining alcohol consumption trends and the impact of the COVID-19 pandemic. Stone Brewing was once recognized as the ninth-largest craft brewery in the United States.