Recognition of a Gain on Asset Transfer and Impairment Losses in Connection with the Transfer of Assets and Review of the Production Structure in the U.S. Business
Stone Brewing Co., LLC (the Company's consolidated subsidiary) and the Company's U.S. business
Trademarks, know-how and other rights relating to the Stone brand; hospitality business assets, including the Bistro and Tap Room; the Escondido plant (ESCO plant); the Richmond plant (RVA plant); and beer under the Sapporo and Stone brands
The business environment in the U.S. market has become challenging due to inflation-driven price increases, diversifying consumer preferences, declining overall demand across the beer market, intensifying competition and rising costs. The Sapporo brand, however, continues to achieve steady sales growth in the U.S. market.
Approximately US$23 million (approximately ¥3.6 billion) as a gain on transfer and approximately US$80 million (approximately ¥12.6 billion) in impairment losses and other charges. These amounts are scheduled to be recognized as a gain on transfer and impairment losses and other charges.
Second quarter of the fiscal year ending December 2026
The impact on the consolidated earnings forecast for the fiscal year ending December 2026 is expected to be immaterial, as a certain level of restructuring costs has already been incorporated into the forecast.
Company response
Beer production under the Sapporo and Stone brands at the Escondido plant (ESCO plant) is scheduled to cease during 2026.
The asset transfer is scheduled to be completed in May 2026. Production at the ESCO plant will cease, while the production and sales structure at the RVA plant will be maintained. The Company will optimize its production structure across North America, including Canada, and expects profit improvement of at least US$10 million in fiscal 2027.
If any matter requiring disclosure arises in the future, it will be disclosed promptly.
| Item | Details |
|---|---|
| Event name | Recognition of a Gain on Asset Transfer and Impairment Losses in Connection with the Transfer of Assets and Review of the Production Structure in the U.S. Business |
| Date of occurrence | 21 April 2026 (date of Board of Directors resolution and contract execution) |
| Subject Entity | Stone Brewing Co., LLC (the Company's consolidated subsidiary) and the Company's U.S. business |
| Target Locations / Products | Trademarks, know-how and other rights relating to the Stone brand; hospitality business assets, including the Bistro and Tap Room; the Escondido plant (ESCO plant); the Richmond plant (RVA plant); and beer under the Sapporo and Stone brands |
| Cause | The business environment in the U.S. market has become challenging due to inflation-driven price increases, diversifying consumer preferences, declining overall demand across the beer market, intensifying competition and rising costs. The Sapporo brand, however, continues to achieve steady sales growth in the U.S. market. |
| Amount of Impact on Business Performance | Approximately US$23 million (approximately ¥3.6 billion) as a gain on transfer and approximately US$80 million (approximately ¥12.6 billion) in impairment losses and other charges. These amounts are scheduled to be recognized as a gain on transfer and impairment losses and other charges. |
| Accounting period in which recognized | Second quarter of the fiscal year ending December 2026 |
| Impact on Earnings Forecast | The impact on the consolidated earnings forecast for the fiscal year ending December 2026 is expected to be immaterial, as a certain level of restructuring costs has already been incorporated into the forecast. |
| Suspended operations | Beer production under the Sapporo and Stone brands at the Escondido plant (ESCO plant) is scheduled to cease during 2026. |
| Outlook | The asset transfer is scheduled to be completed in May 2026. Production at the ESCO plant will cease, while the production and sales structure at the RVA plant will be maintained. The Company will optimize its production structure across North America, including Canada, and expects profit improvement of at least US$10 million in fiscal 2027. |
| Planned follow-up disclosure | If any matter requiring disclosure arises in the future, it will be disclosed promptly. |
Items this document does not state (14)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Although the business environment in the U.S. market has become challenging due to inflation-driven price increases, diversifying consumer preferences, declining overall demand, intensifying competition and rising costs, the Sapporo brand has continued to achieve steady sales growth. The Company will therefore concentrate management resources on that brand to drive growth and improve the profitability of its U.S. business.