Sapporo-Stone Brewing marks significant expansion in US with $60m investment

Sapporo-Stone Brewing, a San Diego-based brewery under Sapporo U.S.A., has announced nearing completion of phase one of its ambitious expansion project at its Escondido brewery. This phase is part of a broader $60 million investment aimed at significantly enhancing the brewery’s production capabilities across its U.S. operations.

Strategic Expansion to Boost Production

The $20 million investment in the Escondido facility, coupled with an additional $40 million allocated to the company’s Richmond, VA operation, is set to double Sapporo-Stone’s brewing capacity to approximately 700,000 barrels annually across its bi-coastal sites. This expansion not only increases production but also marks the shift of all Sapporo beer production from Canada and Asia to the U.S., aligning with the company’s strategy to localize brewing operations.

Job Creation and Economic Impact

The expansion has already made a significant impact on local employment, with Sapporo-Stone adding 125 jobs in the San Diego area and another 75 in other locations. The company now boasts a combined workforce of nearly 850 employees, highlighting its role as a major employer in the region. Moreover, the integration of operations post-acquisition has led to over 150 internal promotions and role expansions, underscoring the company’s commitment to workforce development and employee retention.

Sapporo-Stone Brewing has announced nearing completion of phase one of its ambitious expansion project at its Escondido brewery. Photo courtesy of PRNewswire/Stone Brewing Co., LLC dba Sapporo-Stone Brewing Co.

Maintaining Brand Identity While Growing

“Operationally, this acquisition looks a lot like a merger,” stated Zach Keeling, Interim CEO of Sapporo-Stone Brewing. “While the Sapporo and Stone Brewing brands will maintain their unique identities, we operate as a single, cohesive entity under the Sapporo-Stone name, sharing operations, cultures, and business strategies.”

Enhancing Facilities and Infrastructure

The expansion project includes the installation of additional tanks and new packaging lines designed to boost both capacity and operational efficiency. Sapporo-Stone operates two brewing and packaging facilities, and a distribution warehouse in Escondido, along with additional storage spaces in San Marcos and Downey, CA. On the East Coast, its operations include a brewery, an off-site warehouse, and a taproom in Richmond, VA.

Future Aspirations and Market Growth

Sapporo-Stone is now positioned as the nation’s 12th largest brewery by volume and is eyeing a spot in the top 10. The company’s unique portfolio that blends craft and import characteristics has seen significant growth, with the Sapporo brand growing 13.1% year over year—nearly double the growth rate of the import beer category. Similarly, Stone Brewing’s core brands have also seen a growth of 13.2%.

Community Engagement and Legacy

“Sapporo-Stone Brewing is committed not only to growth but to continuing the legacy of Stone Brewing as a pivotal figure in San Diego’s craft beer scene,” said Hiro Kitaoka, Chairman of Sapporo-Stone Brewing, at the Escondido Open House event. The company remains dedicated to promoting craft beer culture through local events, festivals, and innovative brews.