The San Diego brewing industry was rocked by Tuesday’s news that Stone Brewing is being sold for the second time in four years, with Sapporo USA agreeing to deal the brand to Firestone Walker Brewing and its parent company, Duvel Moortgat USA. While Sapporo will maintain ownership of Stone’s manufacturing facilities in Escondido and Richmond, Virginia (as well as the Stone Brewing World Bistro & Gardens bar-and-restaurant at the former, the fate of which is in limbo as Sapporo searches for an entity to take it over), Firestone Walker will acquire Stone’s taprooms in downtown San Diego, Oceanside and Pasadena, as well as its 10-barrel brewpub in Point Loma’s Liberty Station development. And while the latter site will still be utilized for small-batch and R&D brewing, large-scale manufacturing of Stone beers will take place at Firestone Walker’s production brewery in Paso Robles as well as Boulevard Brewing (another company under Duvel Moortgat’s umbrella) in Kansas City, Missouri. With more questions than answers following the announcement of this blockbuster acquisition, we reached out to Firestone Walker to find out more. The following is information straight from company CEO Nick Firestone and Brewmaster Matt Brynildson on why this was a deal they felt was right for them, why they are enthused and encouraged about what’s to come, and how they plan to go about staying true to the Stone brand and the trailblazers who helped make it – and Southern California’s craft-beer scene – all it has become.
Firestone (Photo: Firestone Walker)
What made the prospect of acquiring Stone attractive?
Nick Firestone: Stone’s been in biz for 30 years. We have the same birthday, as we’re also celebrating our 30th anniversary. We understand what Stone does. We’ve admired many things about their business as another powerhouse SoCal craft brewery for a long time. It made sense.
Matt Brynildson: I’ve known these guys since the beginning of my career when I moved to California in 2000. They were part of the reason I moved here. The craft-beer wave hadn’t grown to the point we know it today, but they were pioneers in my perspective. It wasn’t long after I landed in California that I went to visit some of those breweries. As years progressed, I got to know [Stone’s co-founders] Steve Wagner and Greg Koch very well. [Former brewmaster] Mitch Steele joined shortly thereafter, and I’ve had a strong relationship with him even after he left the company. Over the years, I’ve been able to pick up the phone and talk to Mitch and other members of Stone’s brewing team on a regular basis. I’ve sat on the Brewers Association’s Hop Quality Group for over 10 years. Firestone and Stone were founding members and (Stone’s Senior Manager – Innovation Program & Supply Chain) Jeremy Moynier is chair of that group. He’s a 20-year vet and a true friend. I have a lot of respect for him and his colleagues, present and past. Also, Stone has always had two feet firmly planted in the West Coast IPA and been leaders in that. When this opportunity came up, it took two seconds to say “yes.” This is a great fit.
What makes this acquisition different from others in the craft-beer space?
NF: Anytime a reader sees acquisition in the beer space, the hairs on the back of their head stand up a bit. They think of private equity guys coming in, scavenging assets and cutting things, and wonder what is going to happen to quality. Duvel is a fourth-generation independent brewer, and they have bought a handful of breweries around the globe – Brewery Ommegang, Boulevard Brewing and Firestone Walker in the U.S. If you go to those breweries, the consistent thing you’ll find is incredible beer and a real commitment to the brewing tradition as well as investment in quality and brewing technology. They’ve been incredible partners for us that have made us tremendously better. Times have been tough in the years since COVID. When we talk about that with Duvel, they acknowledge that, but say, “yeah, but we’ve been through World Wars.” It’s a helpful perspective.
MB: I’ve toured almost every one of Duvel Moortgat’s breweries and was struck by (CEO) Michel Moortgat and the Duvel crew. They don’t get involved with a brewery unless they’re in it for the long haul. They’re beer people with passion for really good beers and make investments in the projects they take on every time.
Why is the Stone brand perhaps better set up for success now than under Sapporo?
NF: What Sapporo’s been public about is that acquiring Stone was about entering the U.S. market in a meaningful way and establishing production in the States. What they found is that the Sapporo brand has grown tremendously in recent years. The future for them is doubling down on Sapporo’s growth. Perhaps Stone was a little out of position for them in that objective. We understand Stone and the craft-beer playbook as well as the California market and distributors. We speak the same language as Stone. It was a win-win. The worst thing is when a brand shuts down. With (recent Firestone Walker acquisition) Trumer Pils and now Stone, it’s important to us that we pay it forward, honoring everyone’s life work over the years to build these brands into household names.
What steps will you take to ensure quality as you take over production of Stone beers?
MB: It’s early, but in the process of getting to this point I’ve had the opportunity to look under the hood on Stone’s recipes and processes. After 30 years of brewing, I understand the best way to differentiate is to adopt a company’s yeast strains. We’re not going to bypass the basics there. The same goes for raw materials, including hops. From selection to kettle-hopping to dry-hopping, we do things very differently. We’ll start by assuming their hop contracts and inventories to be same-same wherever we can. There’s some process stuff as well, and while I haven’t had boots on the ground or discussions with staff yet, I know there are some cool points of differentiation. We’ve traded pro tips over the years, but our beers are very different process-wise. We’ll draw distinctive lines and keep things separate, paying attention to all the nuances differentiating our beers. And we’ll have to flavor-match to Stone, not only in Paso Robles, but in Kansas City. All that said, West Coast IPAs are right in our wheelhouse. We love them and will give them great love and care.
What will your approach be regarding Stone’s public venues?
NF: We are approaching this entire thing with humility. Stone is really good at a lot of stuff, including hospitality. Liberty Station is an incredible location. We intend to learn a lot from them. Fans won’t come here and see it all of a sudden branded as an 805 Taproom or Firestone Walker. We want to make sure we don’t break anything. We’ll take a bit of time to understand how they operate and what makes each place so awesome. Over time you will start to see some of our own fingerprints show up.
MB: On the brewing side, we want to keep as much of Liberty Station’s DNA as possible in place. Our intention is to keep making beers on that kit, hopefully with the same personnel. We want it to continue to be an innovation center like the small brewery at our Venice Beach location. We’ve been brewing there for 10 years. Now I look back and wonder how we ever did things before we had that kit.
Do you have plans to alter or add to Stone’s portfolio?
MB: We want to flavor-match beers as close as we possibly can with what’s coming out of those breweries now. We’ll be starting with their highest-volume beers, such as Stone IPA and Stone Delicious IPA. From there we’ll keep working our way down. I would love to look back at brands that hold a special place for me, like Stone Pale Ale, Smoked Porter and Stone Ruination IPA variants. There’s a deep trove of cool beers, and for sure we can do some of those in small batches at Liberty Station.
NF: On the commercial side, we’re stepping into a car that’s halfway to its destination. They have things like chain distribution and their brand plan that’s typically 6 to 8 weeks out. You won’t see any big changes at retail right away.
What are you most excited about regarding this acquisition?
MB: I’m a longtime fan of Stone beers, so it’s a bit of a pinch-me moment to get to brew iconic beers. It’s a cool challenge and my team is pumped. When we made the announcement this week, our brewers got really excited. We have a huge amount of respect for Stone, and as Escondido winds down that hits hard for a lot of folks, but we are looking forward to interfacing with them, and are excited to get involved and hope to carry the torch.
NF: There’s a ton of excitement for me on a personal level. I remember my first Ruination, which I believe was my first IPA in college. It awoke something in my palate. Our entire brewery feels a nervous sort of excitement. What we’re inheriting is 30 years of lots of talented peoples’ hard work. Beer is very personal for people and Stone connects with people in a special way. It’s bold and has its own attitude. We feel a responsibility to live up to the hype and we’re gonna do it.
How will you strive to maintain Stone’s ties to the San Diego region?
MB: It’s important that the Stone brand stays in California, first and foremost. We’re not in the county, but we’re not that far away. We have practiced cold-chain from day one, so that will ensure fresh beer is getting to the places it needs to, including San Diego, which is less than a day’s drive. We’ll treat Stone beers every bit as precious as our own in terms of how we produce and deliver them.
NF: I think San Diego is a next-level beer community. You come down here and people understand it in a way that most people in other cities don’t. Freshness, quality, hoppy beer styles – those are in the public lexicon and things people care about in part because of Stone Brewing, the legacy they forged and the noise they made. We’re excited to carry this brand forward and maintain what it’s been advocating for 30 years. Speaking of that anniversary, stay tuned, because we’re going to have a party at some point.