Layoffs Coming as Stone Brewing Sells to Firestone Walker

Workers brew, bottle and pack craft beer Oct. 13, 2015, at Stone Brewery in Escondido, California. (AP Photo/Gregory Bull)

Stone Brewing is entering a new chapter under new ownership, but the transition is bringing layoffs and the planned closure of the San Diego craft beer icon’s Escondido brewery and bistro.

Sapporo U.S.A., which acquired Stone in 2022, sold the Stone beer brand, wholesale business and four San Diego locations in April to Firestone Walker Brewing Company and Belgian brewing company Duvel Moortgat.

The deal did not include Stone’s Escondido breweries and bistro, where roughly 220 people currently work.

According to WARN notices, 58 Escondido employees are scheduled to be laid off Oct. 19, with additional job cuts expected as Sapporo winds down operations at the property.

Sapporo told CBS 8 that it will begin a phased closure of the Escondido brewery and bistro and has not found a viable long-term solution for the property.

The closure marks a major change for a brewery that has been closely tied to San Diego’s craft beer identity for three decades. Stone was founded in San Diego in 1996 and became one of the region’s most recognizable independent craft breweries.

Before the sale, Stone operated locations in Escondido, Little Italy, Liberty Station, Oceanside and Petco Park, along with a brewing facility in Virginia.

Brandon Hernández, founder of San Diego Beer News, said Sapporo’s decision to sell Stone was not unexpected.

“They were coming here specifically to acquire the assets for product production capabilities,” Hernández told CBS 8. “It wasn’t like we want to keep Stone going forever.”

Firestone Walker Takes Over Stone

The sale gives Stone new owners with their own deep history in California craft beer.

Firestone Walker Brewing Company, a family-owned California brewery, was founded roughly 30 years ago and once competed directly with Stone.

Under the new arrangement, Firestone Walker will oversee Stone’s West Coast business, while Duvel Moortgat will handle the brand’s East Coast operations.

More than 200 existing Stone employees have already joined the new ownership group, according to the companies, which also say they are looking to hire additional workers.

Firestone Walker CEO Nick Firestone told CBS 8 that the company acquired Stone because of its affection for the beer and intends to invest in the brand for the long term.

For longtime Stone fans, the challenge will be maintaining the brewery’s identity as ownership changes and its original Escondido home winds down.

Hernández said Firestone Walker’s familiarity with California craft beer could ultimately work in Stone’s favor.

“What it takes is somebody who understands the history and the heritage behind everything, the voice of Stone, the style of Stone and keeps that intact,” he said.

The transition comes amid a shifting and slowing American craft beer industry. After years of breweries chasing wider distribution and national recognition, Hernández said the industry is increasingly moving toward smaller, more localized operations.

“It’s not about getting your beer across the country,” he said. “It really is about servicing your neighborhood, your regulars, your locals.”

For Stone, that shift could make its remaining San Diego presence particularly important as the brand moves forward under Firestone Walker and Duvel Moortgat.