Two years after its acquisition by Sapporo U.S.A., San Diego-based Sapporo-Stone Brewing is nearing the completion of the first phase of its expansion project at the Escondido brewery. The $20 million investment in the Escondido facility is part of a larger $60 million growth strategy, which includes an additional $40 million investment in the company’s Richmond, Virginia operation. These investments will double the company’s capacity to approximately 700,000 barrels per year across its two bi-coastal breweries. The brewing of Sapporo beers has already commenced in both Escondido, California, and Richmond, Virginia.
Sapporo-Stone Brewing, the largest craft brewery in Southern California, was acquired by Sapporo U.S.A. in 2022. This acquisition was aimed at transitioning from an importer to a U.S. brewer, with the goal of brewing, selling, and marketing all of Sapporo’s beers for the U.S. market locally. The expansion in Richmond is scheduled to be unveiled in the fall, and by late summer, all production of Sapporo beers will have been moved from Canada and Asia to the United States.
Sapporo-Stone Brewing now employs nearly 850 people, with around 600 based in San Diego County. As part of the expansion project, the company has created 125 new jobs locally and 75 outside of San Diego County. Since the acquisition, over 150 employees have been promoted or transitioned into new or expanded roles.
Interim CEO Zach Keeling stated that the acquisition has effectively functioned as a merger, with the two companies now fully integrated in terms of innovation, brewing, selling, marketing, and operations. Despite maintaining their individual brand identities, Sapporo and Stone Brewing are now collectively known as Sapporo-Stone in name, operations, and culture.
The expansion project at the Escondido facility includes additional tanks and packaging lines to enhance capacity and efficiency. Sapporo-Stone Brewing operates out of its two brewing and packaging buildings and a distribution warehouse in Escondido, with additional warehouse space in San Marcos and Downey, California. The company also runs two Stone Brewing World Bistro & Gardens locations and five Stone Brewing Tap Rooms. On the East Coast, the company operates another brewery, an off-site warehouse, and a Stone Brewing Tap Room in Richmond, Virginia.
As the nation’s 12th largest brewery by volume, Sapporo-Stone Brewing aims to achieve a top 10 ranking. The company’s growth in the beer market is notable, particularly as the craft beer industry consolidates and consumers explore new innovations. Sapporo-Stone’s portfolio, which combines craft and import offerings, has been gaining market share in both the Import and Craft categories over the past year. Sapporo is the top-selling Asian beer brand in the U.S., with sales up 13.1%, nearly double the growth rate of the Import category. Stone’s popular offerings, including Stone Delicious IPA, Stone IPA, and Stone Buenaveza Salt & Lime Lager, have also seen a 13.2% increase in sales.
At the Escondido Open House event on May 21, 2024, Sapporo-Stone Brewing Chairman Hiro Kitaoka praised Stone Brewing for its innovative spirit, passion, and world-class brewing expertise. He expressed pride in continuing Stone’s legacy and the commitment to the Sapporo brand, highlighting the company’s growth and strength as a San Diego business.
Stone Brewing, a pioneer in San Diego’s craft beer scene, has played a significant role in bringing attention to the city’s thriving craft beer industry. The company has supported collaboration through the formation of Stone Distributing Company and by hosting local craft beer events and festivals. Stone Brewing continues to offer innovative craft beers, including its One Batch Dispatch series, alongside its year-round offerings available nationwide and in over 50 countries. Locally brewed Sapporo beers are available at all Stone Brewing locations.