Sapporo USA to Lay Off 220 Workers as It Winds Down Operations at Iconic Stone Brewing Facility

Sapporo USA has announced plans to lay off 220 employees at three of its Stone Brewing locations in Escondido, California, marking a significant consolidation of operations as the company pivots its production strategy. The workforce reductions are set to begin on October 19, with an initial group of 58 employees slated for separation, according to filings submitted to the state under the Worker Adjustment and Retraining Notification (WARN) Act.

The staff cuts arrive in the wake of a major strategic shift for the storied craft beer brand. In April, Sapporo announced the sale of the Stone Brewing brand and several of its hospitality assets to a partnership between Firestone Walker Brewing Company and Duvel Moortgat USA. That transaction was finalized on May 15.

A Changing Landscape for West Coast Craft Beer

Under the terms of the acquisition, the production of Stone’s signature beers is currently shifting away from the Escondido facility. Operations are being migrated to Firestone Walker’s brewery in Paso Robles, California, and Duvel USA’s Boulevard brewery located in Kansas City, Missouri.

While the sale included several high-profile hospitality venues—such as the Stone Brewing World Bistro & Gardens at Liberty Station in San Diego and taprooms in Little Italy, Oceanside, and Pasadena—the Escondido brewery and its associated bistro were notably excluded from the deal. Sapporo initially intended to keep these sites running during a transition period while exploring long-term options for the property.

However, after failing to secure a viable future for the Escondido site, the company has opted to shutter the facility. “This is an understandably difficult time for our Escondido employees and community, and we’re committed to supporting them through this transition,” said Zach Keeling, CEO of Sapporo USA, in a statement provided to the Los Angeles Times.

The End of an Era in Escondido

Founded in Southern California in 1996, Stone Brewing grew to become a central pillar of the West Coast craft beer movement. Sapporo acquired the brewer in 2022, but the company has since decided to divest from the brand to focus its U.S. resources on its namesake Sapporo beer products.

As the brewing industry grapples with shifting consumer habits—including a notable trend of younger demographics moving away from alcohol—the closure highlights the ongoing challenges facing large-scale craft facilities.

When the acquisition was announced earlier this year, both Firestone Walker and Duvel expressed an intention to absorb a significant portion of Stone’s hospitality, sales, and marketing staff. While the corporate future of the Stone brand continues under new ownership, the closure of the Escondido hub remains a somber milestone for the local workforce. As these [Stone Brewing Escondido layoffs] (https://www.foxbusiness.com/lifestyle/stone-brewing-escondido-layoffs-production-shift) move forward, the Liberty Station location is expected to remain operational as both a hospitality venue and an active brewery under the new brand management.