Sapporo Breweries has taken the decision to reduce its production footprint in the US, despite claiming that the sales of its namesake beer brand in the country “have continued to grow robustly”.
The Japanese group, which started off with one brewery in the US nine years ago before buying two more in 2022, is reducing its presence in the country to one production facility again. Having found a buyer for its Anchor Brewing business in 2024, Sapporo has agreed the divestment of one of the two facilities inherited through 2022’s purchase of Stone Brewing (indicated in yellow on the map, below).
Belgian brewer Duvel Moortgat will pay an undisclosed sum for Stone’s brewery in California, which will be overseen by Duvel’s Firestone Walker unit in the state as well as another of its subsidiaries in the country, which was not named.
Once completed, the transaction will reduce Sapporo’s domestic production presence to Stone’s other brewery, in Richmond, Virginia. Sapporo’s four Sleeman Breweries facilities in Canada will provide supplementary service for the US, while the “production structure … will be reconsidered and changed as necessary to ensure optimal development”.
The focus will remain on the Sapporo brand, which has been brewed domestically in the US since mid-2024. At the time, the brand owner spent around US$20m on Stone’s California site and $40m on the Richmond facility.
“[Since buying Stone Brewing] total demand across the entire US beer market trended downward, reflecting developments such as higher prices due to inflation and diversification of consumer preferences,” the group said today (21 April). “This declining demand was compounded by factors including increasing competition and higher costs, making the operating environment increasingly challenging. Despite these conditions, however, the Sapporo brand’s sales have continued to grow robustly in the US market.
“By undertaking this consolidation, the company seeks to enhance production efficiency and reduce fixed manufacturing costs, thereby improving profitability in its US business.”
A gain of around $23m is expected from the sale, although an impairment charge of about $80m will be booked by Sapporo in the second quarter.
