Japan’s Sapporo will acquire California-based Stone Brewing for $168 million.

Stone Brewing, founded in 1996, is the ninth largest craft brewer in the U.S. and the largest in Southern California. Stone claims to have pioneered the West Coast style IPA, and also produces a range of lagers, stouts and sours. Its beer is sold across the United States and in more than 40 different countries.

“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,” Sapporo U.S.A. Chairman Kenny Sadai said in a statement. “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.”

The addition of Stone increases Sapporo’s hold on the US craft beer market, at a time when Japan’s beer sales are dropping.

While U.S. beer volume sales rose only 1% in 2021, craft brewer volume sales jumped 8%, raising small and independent brewers’ volume share of the market to 13.1%, according to the Brewers Association. Craft beer’s retail dollar sales rose 21% to grab nearly 27% of the $100 billion U.S. beer market.

“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,” said Stone Brewing CEO Maria Stipp in a statement.

Sapporo has been looking to increase its US production to further grow the Supporo brand. 

“In terms of product strategy, the Sapporo Group aims to develop products adapted to the local markets by developing brands along both the national and regional axes,” the notice states. “In terms of its supply chain strategy, the Sapporo Group aims to reduce logistics costs and stabilize quality by acquiring production bases in areas close to consumer markets.”