▼

Stone Brewing's $165 Million Sellout Comes Full Circle As Greg Koch Unveils Quarry Escondido In San Diego's North County

After selling Stone Brewing for $165 million, co-founder Greg Koch unveils Quarry Escondido Restaurant & Gardens as the former brewery empire faces layoffs, restructuring and health inspection fallout.

The man who spent decades preaching the virtues of independent craft beer before selling Stone Brewing to a multinational corporation for approximately $165 million has finally revealed the name of his latest venture. Greg Koch, alongside fellow Stone co-founder Steve Wagner, is bringing back the company's legendary Escondido restaurant and gardens as Quarry Escondido, a nostalgic resurrection unfolding amid brewery shutdowns, corporate upheaval, mass layoffs and even a recent health department closure at another Stone-branded restaurant.

The announcement marks another remarkable twist in the increasingly complicated legacy of Stone Brewing, once the rebellious symbol of San Diego's independent beer movement and now a brand that has passed through multiple corporate owners while its original founders attempt to reclaim a piece of the empire they sold.

Koch announced the new name on Instagram on October 20, following two rounds of public voting, hundreds of comments and considerable debate over what to call the sprawling restaurant and gardens at 1999 Citracado Parkway. The former Stone Brewing World Bistro & Gardens, which opened in 2006, is scheduled to serve its final dinner under the Stone name on November 13 before closing temporarily and eventually reopening under the founders' new independent operation.

The winning name, Quarry Escondido, is an unmistakable nod to the property's dramatic landscaping, towering boulders, winding pathways and elaborate gardens. It also allows Koch and Wagner to capitalize on two decades of familiarity with the former Stone destination without actually owning the Stone Brewing name anymore.

Koch initially teased followers with a joke announcement that the restaurant would be called "t'Quesco," complete with an AI-generated image of an elaborate sign above the building's entrance. After several paragraphs describing the supposedly sophisticated new name, he revealed the prank and confirmed that the actual restaurant would be called Quarry Escondido.
The founders also intend to restore the property's relatively understated exterior presentation rather than install a prominent new sign, according to Koch. The restaurant's official branding remains a work in progress, with Koch clarifying that the logo accompanying his announcement is only a placeholder.

Meanwhile, the new venture already has a functioning promotional presence. Its website, QuarryEscondido.com, features the name, a description of the property as a garden destination restaurant, and an email registration form for prospective customers. An Instagram account, @quarryescondido, has also launched, promoting a late-2026 opening and identifying the property at 1999 Citracado Parkway.

The website's invitation, "You already know the way," neatly captures the strategy. This may technically be a new restaurant, but its greatest selling point is that customers already know exactly what it used to be. And that is where the story becomes considerably more complicated than a feel-good restaurant rescue.

Stone Brewing was founded in 1996 by Koch and Wagner, becoming one of the most influential companies in the American craft beer revolution. Its aggressive West Coast IPAs, confrontational marketing and famous gargoyle helped transform San Diego into an internationally recognized craft beer destination.

For years, Koch was among the industry's loudest advocates for independence, regularly criticizing the consolidation of craft breweries under multinational beverage companies. Stone cultivated an identity built around resisting corporate influence, presenting itself as a fiercely independent alternative to the industry's largest players.

Then, in 2022, Stone did exactly what its marketing had spent years criticizing. The company was sold to Japanese brewing giant Sapporo in a transaction valued at approximately $165 million, stunning craft beer enthusiasts who had embraced Stone's anti-corporate philosophy. Although the financial circumstances surrounding the sale reflected substantial industry pressures, the contradiction between Stone's longstanding messaging and its eventual corporate acquisition was difficult to overlook.

The selloffs did not end there. Stone Distributing Company, the separate Southern California distribution business retained by the founders following the Sapporo transaction, was subsequently acquired in 2025 by Sunset Distributing, part of Tennessee-based Hand Family Companies, a major beverage distributor with substantial ties to the Anheuser-Busch distribution network.

Financial terms of that transaction were not publicly disclosed, nor have the founders' individual proceeds from either sale been established. Nevertheless, within roughly three years, both the brewery and the distribution operation that had helped define Stone's independent identity had passed into larger corporate hands.

The results of Stone's corporate era have hardly resembled the triumphant expansion once envisioned for the brand. In April 2026, Sapporo announced plans to sell Stone's brewing brand, intellectual property and certain hospitality operations to Firestone Walker Brewing Company and its parent, Duvel USA. The transaction followed mounting financial challenges, changing consumer demand and broader difficulties in the American craft beer market.

The deal excluded Stone's massive Escondido production facility and its original restaurant and gardens. With beer production shifting elsewhere, the Escondido brewery faced a wind-down and approximately 220 jobs were expected to be eliminated.

For San Diego, the consequences were substantial. A company that once symbolized the region's independent brewing identity was being dismantled locally, with its famous brand surviving under new ownership while the original production headquarters prepared to shut down.

Then came another embarrassment for the surviving Stone hospitality operation. On October 15, San Diego County health inspectors ordered Stone Brewing World Bistro & Gardens at Liberty Station temporarily closed after identifying a major vermin violation, along with additional deficiencies involving food-holding temperatures and sanitation.

The restaurant, located at 2816 Historic Decatur Road in Point Loma, underwent follow-up inspections on October 16 and received a passing score of 97 and an A grade. A separate reinspection that day documented no violations.

The closure was therefore temporary, and county records do not establish that the problem was longstanding or that customers became ill. Still, an immediate shutdown for a major vermin violation is hardly the publicity one would expect a nationally recognized brewery restaurant to welcome.

There is no evidence connecting the Liberty Station violations to Stone's recent ownership changes, and Koch and Wagner are not responsible for the restaurant's current operations. But the episode adds another uncomfortable chapter to the ongoing deterioration of the once-unified Stone empire.

Against that backdrop, Quarry Escondido offers the founders a chance to write a very different ending. Rather than reacquiring the brewery they sold, Koch and Wagner are returning to the restaurant and gardens that helped make Stone a destination rather than simply a beer brand. The property's distinctive architecture, landscaped grounds, ponds, gathering areas and expansive dining spaces have remained among North County's most recognizable hospitality attractions for nearly two decades.

The emotional attachment is evident in the response to the announcement. Former customers have recalled weddings, rehearsal dinners, celebrations and countless afternoons spent exploring the gardens. Many expressed excitement that the landmark would survive even as the brewery operations surrounding it wind down.

Others were considerably less forgiving. One Instagram commenter questioned how long it would be before the founders sold the new business and employees lost their jobs again. Another suggested the restaurant should have been called "Stoned Again," an irreverent reference that also captures the irony of the founders' return.

Several commenters raised practical questions about whether former employees would be rehired, whether familiar menu items would return, what beers would be available and whether the adjacent brewing facility would continue operating. Those questions are more consequential than the restaurant's name.

Koch and Wagner have not announced a finalized menu, disclosed the financial structure of the new operation or established precisely what will happen to the enormous brewery facility adjoining the gardens. The founders have indicated that the restaurant will reopen after the necessary California liquor licensing approvals, but an exact opening date has not been confirmed.

The new website advertises a late-2026 debut, suggesting an ambitious turnaround following the November 13 closure. Whether that timetable can be met will depend on licensing, operational preparations and the founders' ability to establish a new business within a property that was originally designed around a much larger brewing operation.

Quarry Escondido will also face a challenge that the original Stone restaurant never had to confront: building an identity without the beer brand that made the destination famous. The founders can preserve the gardens, retain the familiar address and recreate elements of the hospitality experience. They can even embrace the property's rugged landscape and use the name Quarry to evoke the original Stone aesthetic. But they cannot simply rewind the corporate transactions that transformed their former company.

The Stone Brewing brand remains under separate ownership, the distribution operation has been sold, and the future of large-scale brewing at the Escondido campus remains uncertain. It is an extraordinary reversal for Koch, who once became synonymous with independent craft beer but is now marketing a return to independence from the aftermath of a corporate sale he helped initiate.

To his credit, the effort may prevent one of San Diego County's most distinctive restaurant properties from disappearing. The founders created a genuinely influential hospitality destination, and preserving it would be a meaningful accomplishment regardless of the circumstances that brought them back. But nostalgia should not erase history.

The $165 million sale, the subsequent distribution business acquisition, the corporate restructuring, the displacement of workers and the loss of Stone's original brewing headquarters are all part of the same story. A revived restaurant does not undo those consequences, nor does a new name automatically restore the independent spirit that once made Stone such a powerful cultural force.

Quarry Escondido may ultimately become a successful new chapter for two of San Diego's best-known brewing entrepreneurs. Its gardens may again fill with customers, its restaurant may recapture the atmosphere that made the original property special, and the venture could help preserve an important local landmark. But the more interesting question is whether Koch and Wagner can build something lasting without the corporate machinery, familiar branding and enormous brewing business that once supported their ambitions.

After helping sell off the Stone empire, its founders are now asking San Diego to celebrate their return to the ruins. Whether Quarry Escondido represents redemption, reinvention or simply a savvy effort to monetize the nostalgia of a brand they no longer own remains to be seen.

Quarry Escondido is planned for 1999 Citracado Parkway in Escondido, with an anticipated opening in late 2026. Additional information and updates are available at QuarryEscondido.com and through Instagram at @quarryescondido.

Originally published on October 20, 2026.