Stone Brewing Gives Up on International Exports Despite ‘Strong Efforts’ Abroad

Stone Brewing is discontinuing exports and shifting its business strategy back to the United States. (Photo: Stone Brewing/Facebook)

The Drinks Business reported on Wednesday that Stone Brewing, the popular San Diego-based beer brand owned by the Japanese brewing giant Sapporo, is pulling out of the international market entirely to focus exclusively on sales in the U.S. starting January 2025.

“This decision was not made lightly,” Sapporo-Stone CEO Zach Keeling said, according to The Drinks Business. “Stone’s international export business makes up about 1% of our total sales. Despite our team’s strong efforts, the current environment has challenged our growth.”

Keeling went on to elaborate that Stone has a “clear and very promising plan for future growth,” and that plan involves Stone’s focus to shift back to America.

The Drinks Business reported that in May, Sapporo-Stone invested $20 million in the brewery’s Escondido facilities in California. The brewery additionally spent $40 million on its Richmond facilities in Virginia. Yet despite a focus on growing its production capacities, the outlet reported that in October, Stone discontinued several specialty releases and large format bottles, signifying a shift in strategy.

Stone has seen several changes since it was acquired by Sapporo in September 2022. Brewbound reported Stone was purchased by the massive beer brand for a whopping $165 million.

Craft Beer Braces for an Uncertain Future

Axios reported in April that craft beer faced one of the worst years ever in 2023, continuing a downward trajectory for breweries, both large and small.

Though admittedly, the impact was more acutely felt by smaller breweries, the outlet shared that the beer industry experienced a holistic decline of 5.1% in production volume. The outlet reported that the rate of closures for craft breweries increased by 418 breweries, and openings continued to experience a downward trend.

This might explain Stone’s decision to scale back exports due to a softening market.

Other breweries have cited concerns regarding the existential threat of looming tariffs from the newly elected President Trump. Forbes reported on Nov. 8 that brewers across America are still reeling from the 2018 tariffs on imported goods, like hops and brewing equipment. The tariffs led to price increases for American consumers, and Forbes reported a loss of 40,000 jobs in the brewing sector during the Trump administration, according to a study done in 2018.

The outlet additionally reported tariffs could result in significant price increases for aluminum cans and brewing equipment. Many brewers rely on countries like China to manufacture brewing equipment, and President Trump’s suggestions of re-implementing tariffs as high as 60% during his second term has many brewing businesses on edge. If the future is anything like President Trump’s previous term, other countries are highly likely to retaliate by imposing tariffs on American goods, which could explain Stone’s decision to bow out of the international marketplace altogether.

Needless to say, craft beer is bracing for a bumpy ride.