Hundreds of workers are set to lose their jobs after one of the largest breweries in Southern California announced its production facilities will be leaving the region.
Stone Brewing will be exiting its three locations in Escondido as the company moves production to Paso Robles in San Luis Obispo County and to Kansas City.
The craft beer pioneer will first lay off 58 workers in late October before eventually axing a total of 220 employees, according to a notification letter filed with the state.
Stone Brewing was acquired by Japanese beer giant Sapporo in 2022 to take on production of Sapporo beers in California for distribution across North America.
The CEO of Sapporo USA, Zach Keeling, said the Escondido locations had to be closed because it has “not yet found a viable long-term solution” for the site.
“This is an understandably difficult time for our Escondido employees and community, and we’re committed to supporting them through this transition,” Keeling said.
Stone Brewery was sold in May by Sapporo to Firestone Walker Brewing Company and Duvel Moortgat USA. In that deal, the buyers acquired the brand and some hospitality locations, but the announcement did not mention the Escondido sites.
“Stone Brewing will retain its distinct voice, joining a family of breweries that share a deep respect for beer tradition and culture,” the buyers said.
According to the announcement, one location in San Diego will still operate as both a hospitality destination and an active brewing facility, leaving at least some of Stone’s physical presence in the area.
Stone Brewing launched in 1996 in San Marcos and relocated to Escondido in 2006. The company, which was buoyed by the West Coast craft brewing boom in the 2000s, was at one point the ninth largest craft brewery in the U.S.
The dying hype around craft beer and the COVID-19 pandemic has since been a hit to the industry, which is facing a national trend of declining alcohol consumption.