According to WARN notices filed with the state of California, layoffs will begin October 19, when 58 employees are set to lose their jobs, with cuts affecting roles across brewing, packaging, warehousing, logistics and quality assurance. All non-hospitality operations at the site are expected to be wound down by mid-November.
Stone Brewing was founded by Greg Koch and Steve Wagner in San Marcos, California, in 1996, starting with just three employees and producing 400 barrels in its first year. The brewery built a global reputation on its IPAs and self-described "confrontational attitude." By 2005, annual production had grown to more than 36,000 barrels, prompting a move to the larger Escondido facility, built around a 120-barrel brewhouse that supported the company's continued expansion.
In 2022, Stone Brewing was sold to Japanese brewing giant Sapporo for approximately $165 million, ending 26 years as an independent brewery.
Earlier this year, the Stone Brewing brand was sold again — this time to Firestone Walker Brewing Company and Duvel Moortgat's US arm, in a deal that closed May 15. That transaction included the Stone brand name and several hospitality operations but did not include the Escondido production brewery, which remained under Sapporo USA ownership and is now facing closure.
Under the new ownership structure, production of the Stone beer portfolio is being shifted to Firestone Walker's brewery in Paso Robles, California, and to Duvel USA's Boulevard Brewing operation in Kansas City, Missouri.
Sapporo USA CEO Zach Keeling sought to clarify that the closure is unrelated to Stone Brewing's ongoing operations under its new owners. "This week's WARN notice filings relate solely to the Escondido, California brewery and bistro operations, which are being wound down by Sapporo USA. The affected team members are Sapporo USA employees and have no connection to Stone Brewing's ongoing business under Firestone Walker or Duvel USA's ownership," Keeling said.
He added that confusion had arisen because the WARN filing references "Stone Brewing," which he said reflects "a historic legal entity name that the company operates under publicly as Sapporo USA."
