Stone to layoff employees

[ImNoExpert]

http://www.nbcsandiego.com/news/local/Stone-Brewing-Announces-Layoffs-397019651.html

Not sure what the deal is here since they keep building breweries and expanding. Maybe the beginning of the end? A major craft brewing shake up that leads to the closing of thousands of breweries nation-wide?

 

[GilaMinumBeer]

Or, maybe, just maybe, there are better beers out there than what Stone is offering?

Can't make money off of what people aren't buying.

 

[beernbourbon]

View attachment ImageUploadedByHome Brew1476462932.940572.jpg

 

[Sparge]

The market does seem to be saturated with craft breweries right now.

 

[wyowolf]

I DO like their stuff, but it IS pricey so I dont always buy it...

 

[GilaMinumBeer]

Maybe they are shaking loose some capital for a MoreBeer buyout?

 

[ktblunden]

Sounds like they overextended themselves with capital expenditures. New breweries in VA and Berlin, a hotel in Escondido, and expanded distribution. Seems like too many big expenditures at the same time.

 

[Barley_Bob]

Is Stone publicly traded?

 

[helg56]

For the price Stone wants for their beer, most of the time it's not worth it for me. I can get the same or better at the same price and support a local brewery in process over their beer.

 

[bruteforce]

I'm surprised to see how many people think stone is expensive. Sure, they have some bombers in the $17 range, but hell, goose island Halia goes for $25+. My latest Hanssens artisanaal purchase was more than that for a smallish bottle.

 

[ktblunden]

I'm surprised to see how many people think stone is expensive. Sure, they have some bombers in the $17 range, but hell, goose island Halia goes for $25+. My latest Hanssens artisanaal purchase was more than that for a smallish bottle.

I don't find Stone overpriced, but it might be a regional thing. I buy Stone stuff directly from their company store in Pasadena.

 

[schematix]

Stone is very expensive here in Missouri. That and it's usually very old so when you add old + expensive, i just buy something else.

 

[Barley_Bob]

It looks they are not publicly traded.

However, they did bring in a new CEO, Dominic Engels, in September of this year.

Mr. Dominic Engels has been Chief Executive Officer of Stone Brewing Co. since September 6, 2016. Mr. Engels has been President of POM Wonderful since June 2015. He served as Vice President of Global Marketing at Wonderful Pistachios & Almonds LLC. From 2011 to 2015, he oversaw sales, marketing and operations for Wonderful pistachios and almonds, plus POM Wonderful's pomegranate juice business in Europe, the Middle East and Africa. He also led the European division of another Wonderful product, Fiji Water. He is a graduate of Dartmouth College and Northwestern University's Kellogg School of Management.

Knowing this, I view these layoffs as a good thing. Engels is clearly an experienced executive. The original owners remain in leadership positions, but they've handed the reins to a guy with an elite business education and experience growing market share and capitalizing on it both within the US and internationally. True, the owners built this from the ground up, but they are not playing the same game they were when they started out selling beer out of the trunk of a car.

At the end of the day, the brewery is a business and their goal is to monetize the product and generate a profit. When you bring a guy in to shake things up and lead your company forward, he shakes things up. And that's what's happening here.

Watch for Stone to take some big steps forward - Wonderful Pistachios was one company in a group of pistachio growers a few years ago. Now they own a substantial share of the market and have excellent brand recognition. All of the icon pistachio ads we've become accustomed to came out while Engels was with that company. Similar things have happened with Pom Wonderful. I would anticipate a streamlined product line and excellent advertising to be arranged in short order.

I agree with posters above; Stone just isn't my favorite product. But it is very good. Their task is not in improving the product, but in convincing consumers it is worth the purchase. Because let's face it, the actual variance in quality between all craft breweries is very low. Stone needs us to believe it is, and they need to be cool again. They've established facilities across the country and in Germany, and now they're poised to start gobbling up the market. Engels is their man to lead the strike.

 

[ImNoExpert]

I think they are priced too high here in WI. I can get world quality IPAs from all over. What makes Stone's IPA worth $10 for a six pack?

I'm no economist (nor an expert), but I would think when the craft beer market contracts, those who expanded too quickly will be the first to feel it. I'm wondering if this is a leading indicator of what's to come.

Not that I'm worried about it. I think the market will sort itself out and weed out the bad and strengthen the good. That is unless AB Inbev comes in and muscles out all the shelf space with their brands in the interim. Then we're in trouble.

 

[beernbourbon]

I think they are priced too high here in WI. I can get world quality IPAs from all over. What makes Stone's IPA worth $10 for a six pack?

That's expensive? Most IPA six packs from New Belgium, Brew Kettle, etc., are at least that, usually in the $12+ range, here in Cincy. Prices vary all over, you buy what you like, pay what it is, or don't. Just like taste, it's all personal preference.

 

[Konadog]

.... What makes Stone's IPA worth $10 for a six pack?

The same people that make a six pack of Ballast Point Sculpin, DogFish Head Blood Orange, and a few other beers $12.

There is a reason we all make beer

 

[Barley_Bob]

I think they are priced too high here in WI. I can get world quality IPAs from all over. What makes Stone's IPA worth $10 for a six pack?

What craft beer are you buying that costs less than $10 for a six pack?

 

[Johow]

We now have 4 fully operating breweries here in my little town of Auburn Ca, and many more
In the general area. I'm wondering when that saturation point will be hit. They all make great beer and are fun places to hang but it just seems like a lot.
Stone is usually out of my price range for what I have tasted from them...

 

[drksky]

I don't think they're any more expensive than any other craft beer. They just don't make anything that I much care for.

 

[beernbourbon]

I don't think they're any more expensive than any other craft beer. They just don't make anything that I much care for.

This. Bottom line.

 

[jensek]

I think the market will sort itself out and weed out the bad and strengthen the good. That is unless AB Inbev comes in and muscles out all the shelf space with their brands in the interim. Then we're in trouble.

Not really. Consumers are demanding a lot of variety in their beer. If a retailer limits choice then consumers will just go some place that provides variety. The only way the genie goes back into the bottle is if consumer preferences change.

 

[Scturo]

I blame all of you home brewers for the inevitable collapse of the craft beer industry.

 

[nDub]

We now have 4 fully operating breweries here in my little town of Auburn Ca, and many more
In the general area. I'm wondering when that saturation point will be hit. They all make great beer and are fun places to hang but it just seems like a lot.
Stone is usually out of my price range for what I have tasted from them...

We'll take one here in Sonora...

The one small brewery we had (in Murphy's) closed down recently.

 

[Nummey]

Overly saturated market, way more choices available and it's overpriced! Twelve packs of Stone IPA are $23 where I live..

 

[Barley_Bob]

Clones on HBT:
Stone Ruination - 660 replies; 226,389 views
Enjoy By IPA - 232; 65,575

Sorting replies, that's two beers in the top 80 on our own webpage.

Again, they're not my favorite, and I'm not going to try to speak for anyone else's preferences. But clearly, they do make good beer.

 

[GilaMinumBeer]

Engels is their man to lead the strike.

Stone Pistachio Porter.

Stone Pomegranate Pale Ale.

 

[bob1852]

What craft beer are you buying that costs less than $10 for a six pack?

Stone

 

[Zekk]

I'm curious if this is because with their new places opening they don't need the employees in the San Diego area anymore. Most are probably unskilled and not worth offering to relocate them.

 

[shellsbells]

Overly saturated market, way more choices available and it's overpriced! Twelve packs of Stone IPA are $23 where I live..

You think $23 for a 12 is bad? A six of Stone Delicious IPA goes for $18.90 here (in Toronto)!

 

[oli-aus]

In my opinion stone are superb value for money and I love what the companies about.
Also nice to hear Greg cook talk about the big processed food/beer companies without ***** footing about.

 

[Sparge]

Stone makes great beer. The problem is the craft beer market is saturated. There are only so many people willing to spend the extra money for craft beer. Then you put that up against home brewers who can clone their beer, the market shrinks again.

 

[divrguy]

The same people that make a six pack of Ballast Point Sculpin, DogFish Head Blood Orange, and a few other beers $12.



There is a reason we all make beer

And I've noticed Sierra Nevada pale ale at $9 now

 

[thunderwagn]

I blame all of you home brewers for the inevitable collapse of the craft beer industry.

Man, I feel like I buy more beer the more I brew! Always looking for style comparisons.

I like Stone when it's fresh and handled properly. Unfortunately, that's not always the case when I do purchase it.

 

[FirstAidBrewing]

Stone has also been, at least in my area, markedly more expensive and rarely worth the markups

 

[ImNoExpert]

What craft beer are you buying that costs less than $10 for a six pack?

New Glarus, Sierra Nevada, Great Lakes, Bells, Founders, New Belgium to name a few. A lot of our local stuff goes for less than $10 a sixer. There are some that go for more, but they are usually specialties, not flagship IPAs.

Today I bought a Marzen from a Colorado brewery for 8.49 and Sam Adams Oktoberfest for 7.49.

 

[ImNoExpert]

Not really. Consumers are demanding a lot of variety in their beer. If a retailer limits choice then consumers will just go some place that provides variety. The only way the genie goes back into the bottle is if consumer preferences change.

I agree with you, but when consumer preferences change, it'll be those who are stretched too far who will suffer first.

I think we might be getting to point where there are too many choices. It's tough to stand out unless you're flawless.

 

[Scturo]

The only craft beer I can find at under $10 a sixer is Goose Island IPA. At $5.99 a sixer.

 

[mesooohoppy]

All the regular stone brews in my area are 9.99 a sixer for their regularly brewed beers. The seasonal stuff is ridiculous at 16-17 a sixer though. I bought a bottle of xocovesa charred at 19 for a bottle and I'm not sure why as I don't even like xocovesa? Not like ballast point bad, sort of a moot point for me though as I dont drink sell out beer (and neither should you)

I don't own a business, nor will I pretend to understand what the hell I'm talking about; but, I think it's sorta lame that they're laying off people but continuing to expand on the other side of the country/world. IMO, doesn't look good.

 

[kh54s10]

It is a minor restructuring and a small layoff. It neither spells doom for Stone or the craft beer industry. There is a lot of competition so they are adjusting. That and the fact that Stone's beers are just not that great. I buy them but they don't really stand out, even among little known breweries.

 

[MidAtlanticBrew]

Me too, the local brewery I support is as good and it's very local and $0.35 a glass

For the price Stone wants for their beer, most of the time it's not worth it for me. I can get the same or better at the same price and support a local brewery in process over their beer.