One of California’s best-known craft breweries is cutting jobs as it prepares for a major shift in where its beer is produced. The move marks another significant change for a company that helped put San Diego’s craft beer scene on the national map.
220 workers affected
Stone Brewing is set to close three facilities in Escondido, California, resulting in 220 job cuts, according to the Los Angeles Times. Brewing operations are expected to transition to facilities in Paso Robles, California, and Kansas City, Missouri.
The layoffs represent a significant reduction in Stone’s Southern California manufacturing footprint and will affect workers who have been part of the company’s longtime Escondido operations.
Production moves out of Escondido
The production changes follow Sapporo’s sale of the Stone brand to Firestone Walker Brewing Company and Duvel Moortgat USA earlier this year.
The deal included Stone’s California hospitality locations, while the Escondido production operation was not included in the sale. The shift means beer production that has long been associated with Stone’s San Diego-area headquarters will increasingly take place elsewhere.
What’s behind the restructuring
The changes come as the craft beer industry continues to deal with declining beer consumption, rising operating costs, and a wave of brewery closures and consolidations.
Sapporo previously said consolidating production would improve efficiency and reduce fixed manufacturing costs. Moving production to other breweries allows the company to maintain Stone’s brands without continuing to operate the same level of manufacturing infrastructure in Escondido.
Stone Brewing’s California roots
Stone Brewing was founded in San Marcos in 1996 and became one of the most recognizable names in American craft beer. Its Stone IPA and Arrogant Bastard Ale helped establish the brewery as a major player during the craft beer boom.
The Escondido brewery later became a destination for beer enthusiasts, making the production cuts particularly significant for the local community.
What happens next
Although manufacturing is moving out of Escondido, Stone’s brand and California hospitality operations are expected to continue under the new ownership structure.
The layoffs nevertheless represent another major contraction for Southern California’s craft beer industry, which has seen numerous breweries struggle with changing consumer demand and higher costs.
Links on this page may be affiliate links, for which the site earns a small commission, but the price for you is the same
Leave a Comment