I was already in a pretty crappy mood this morning. Probably not alone. And then this? It’s about priorities. It’s about perspective, I suppose. I am having trouble getting outraged or even a bit upset about this morninng’s news that international beer behemoth Sapporo is going to acquire Stone Brewing for a reported $165 million. It fills me with an overwhelming sense of apathy, to be honest. An increasingly irrelevant brewery just became less relevant. Who cares. Yeah, a pretty crappy mood this morning.
Earlier this year, It was widely reported that Stone Brewing owed investors more than $460 million and was considering ways to raise those funds. Also reported earlier this year, the company’s lawsuit against Molson Coors, though successful, did not result in the big payday Stone anticipated. So I guess this Stoneporo deal is no surprise. Sounds like Sapporo just bought itself a lot of debt. Sounds like Stone just crawled its way out from underneath a big rock, so to speak.
For more information about the whole deal, pay attention to the San Diego Beer News. My man Brandon Hernandez is on top of the situation. Otherwise, see the press release below, which is filled with all the usual blah blah blah.
Sapporo U.S.A. to Acquire Stone Brewing
East Meets West – U.S. market production of #1 Asian beer brand will shift to breweries at one of largest craft beer brands in U.S.; Stone retains existing brands, management and workforce; deal advances Sapporo’s strategic growth plans
SAN FRANCISCO–(BUSINESS WIRE)–Sapporo U.S.A., maker of the number one selling Asian beer brand in the United States, and Stone Brewing, one of America’s largest and most innovative craft beer brands, have reached an agreement for Sapporo U.S.A. to acquire Stone Brewing. Supporting both business’ long-term growth strategies in the U.S. market, the transaction is expected to close in August 2022.
This east-meets-west acquisition brings together the complementary strengths of Japanese artistry and innovation with the American craft brewing tradition in a fusion of cultures creating strength and growth potential for both brands. Sapporo gains major, high-quality brewing capacity on both U.S. coasts that will enable it to significantly increase production to meet the strong consumer demand of 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 preserve 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, California and Richmond, Virginia. Building on existing capabilities, and 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 and provide ample opportunities for growth for both brands.
“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.”
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 & 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.
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.