Stone Brewing reduces workforce by 5% amid slowdown, impact to Richmond brewery uncertain

Escondido, California–based Stone Brewing Company reduced its workforce by about 5% on Thursday, laying off somewhere between 50 and 75 employees, several craft beer industry publications are reporting. Stone, the ninth largest brewery in the U.S., opened its major East Coast distribution center in Richmond in March of this year along with another facility in Berlin, Germany in September.

Officials with the company insist it is still growing, but cite softer than normal sales and increasing competition as two factors in the decision to terminate employees. At press time, we could not confirm whether any Richmond area employees were affected as part of the restructuring of staff.

“Due to an unforeseen slowdown in our consistent growth and changes in the craft beer landscape, we have had to make the difficult decision to restructure our staff,” Stone said in a statement Thursday evening. “Unfortunately, this comes despite a year that includes the incredible accomplishments of opening two new breweries, which are ultimately expanding the availability of Stone beers and boosting the reputation of American craft beer in Europe.”

“More recently however, the larger independent craft segment has developed tremendous pressures. Specifically, the onset of greater pressures from Big Beer as a result of their acquisition strategies, and the further proliferation of small, hyper-local breweries has slowed growth. With business and the market now less predictable, we must restructure to preserve a healthy future for our company. Even given this unfortunate circumstance, we will continue to be fiercely independent and, importantly, Stone remains one of the largest – if not the largest – employers in the craft brewing segment.”

The “Big Beer” Stone references in their statement–large companies like AB InBev and MillerCoors–have ramped up acquisitions of craft breweries across the country and revamped their distribution strategies to remain competitive. Both practices are putting a squeeze on independent breweries.

The news comes just months after the City of Richmond approved over $30 million in bonds to finance Stone’s facility in Fulton Bottom–$23 million for the brewery itself, $8 million for a planned “destination restaurant,” and another $2 million reinvestment of taxes generated by the brewery–which is to be paid back over the course of a 25-year lease. It remains unclear whether the slowdown will affect any of the brewery’s plans going forward in Richmond.

Stone said affected employees were given a “substantial notice period and career transition services.”

The statement went on to say, “The team members no longer with our company are talented, committed individuals who have held important roles in our organization, and we expect that their talents will be in high demand.”