Sapporo U.S.A. and Stone Brewing have reached an agreement for Sapporo U.S.A. to acquire Stone Brewing for around $165 million. The transaction is expected to close in August. This east-meets-west acquisition brings together a fusion of cultures creating growth potential for both brands.
Sapporo gains significant, high-quality brewing capacity on both U.S. coasts, enabling it to significantly increase production to meet the strong consumer demand for its Sapporo-branded beers for the domestic market.
Stone Brewing gains the resources of the largest Asian beer brand in America and its commitment to preserving Stone’s legacy, culture, and innovative approach to craft brewing.
Sapporo intends to produce its Sapporo-branded beers for U.S. distribution in Stone’s two state-of-the-art breweries, in Escondido and Richmond, Va. Building on existing capabilities, supported by planned capital investments, Sapporo intends to brew 360,000 barrels in the U.S. by the end of 2024. This will essentially double Stone Brewing’s current production.
Under the agreement, Stone Brewing will continue to brew its celebrated craft beers at the two breweries, as well as operate its seven Tap Rooms and World Bistro & Gardens destinations with existing branding, management, and workforce under the Sapporo umbrella. Best known for its award-winning beers like Stone IPA, Stone Delicious IPA, and Stone Buenaveza Salt & Lime Lager, Stone will continue to brew with the same recipes and passionate team as before.
“This is the right next chapter for Stone Brewing,” said Greg Koch, co-founder and executive chairman of Stone Brewing. “For 26 years, our amazing team has worked tirelessly to brew beers that have set trends and redefined expectations. To have the interest of a company like Sapporo in continuing the Stone story is a testament to the great beers we’ve created and will continue to create for our fans across the globe.”
“I am thrilled that we have the opportunity to join forces with Sapporo,” said Maria Stipp, CEO of Stone Brewing. “This unique partnership allows us to preserve the Stone legacy that our fans know and love and will add exponential opportunities for growth, from production to more investment in people, equipment, sales, and marketing.”
Stone is the second acquisition in the growing craft brew segment of Sapporo U.S.A.’s business. Alongside Anchor Brewing Co., which was acquired in 2017, the acquisition continues the legacy of great brands coming together under the Sapporo banner. Anchor Brewing operations will remain unchanged.
“We approached Stone Brewing seeking a partner for our growth plans in the U.S, and we quickly recognized they were an ideal partner with bi-coastal brewing capacity, loyal fans, superb management, shared cultural values, and commitment to the highest quality standards,” said Kenny Sadai, chairman, Sapporo U.S.A. “This acquisition puts the resources and legacy of the largest Asian beer brand in America together with one of the most innovative and recognized craft beer brands in the world. It’s a perfect fusion of east meets west that is an ideal marriage for Sapporo’s long-term growth strategy in the U.S.”
Stone Distributing Co., Stone Brewing’s distribution business, is not part of the sale and will become an independent company under current ownership, maintaining its current leadership of day-to-day operations. Stone Distributing is a leading distributor in the nation’s largest craft market and will continue to service Southern California with a portfolio of 42 distinctive craft brands, including Stone Brewing. As a separate entity from Stone Brewing, it will operate as it does today and with increased investment in its brands, people, and future.
