Stone to layoff employees

[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.

 

[hooper]

Screw Stone...I am actually drinking a Stone IPA right now...Last one I had and I will not buy from them again...BS talking numbers and laying off a % of workers...That's not what they preach...preached...

 

[govner1]

That's certainly a well reasoned argument. Especially since you don't indicate any information based on the business challenges and planning of the company.
Perhaps, cutting 5% will help insure the jobs of the other 95% and the long term survival of the brewery!

 

[hooper]

Just like laying off 5% is not a reasoned argument...It's pure BS and they don't need to do it to survive...

 

[beernbourbon]

Just like laying off 5% is not a reasoned argument...It's pure BS and they don't need to do it to survive...

Care to enlighten us on how you are so sure they 'don't need it to survive'? Or maybe your MBA, your business ownership, business management, or your $50,000 a year spent on marketing/trends in craft beer industry as a whole is what tells you that [emoji57]

 

[akthor]

I've seen pics of their brewpub alone out there on the west coast and i was like "wow" it was really amazing but I was also thinking you'd have to sell an awful lot of pints just to pay for all that let alone make money.

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.

 

[hooper]

Look...Stone management got them in this situation...but it is the workers at the bottom who have to suffer for it...it's that way with most companies...management refuses to take the hit for their miscalculations...Have you tasted that spin off AB brewery AB...

 

[fun4stuff]

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.

Overpriced here in MI.

There have been an explosion of local microbrews here in SE over the last 5-10 years. Everyone and their brother are making beer. Can get similar or better beer that's not as old and cheaper.

 

[dallasdb]

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

From what I understand most alcohol in Canada is more expensive but that's partially due to higher taxes. Is the $18.90 in Canadian dollars? If so it'd be around $15 in USD. Still more expensive but just saying.

Alcohol in Colorado is quite a bit more expensive than in California. I think that is due to liquor laws in Colorado. They can generally only sell 3.2% in grocery stores due to liquor licensing. Colorado doesn't allow chains to sell liquor in all stores so there is only one or two locations of a certain chain that is allowed to sell liquor and beer that isn't 3.2%.

 

[dallasdb]

And laying off employees is just the eb and flow of business. Happens in all industries.

Behavioral economics has shown that it's better for moral to layoff 5% of employees than to reduce overall salaries by 5% and keep all staff.

If you reduce salaries it leads to an overall decline in moral and unhappy staff as a whole versus the layoff.

 

[day_trippr]

And laying off employees is just the eb and flow of business. Happens in all industries. [...]

"We're cutting our way to growth".

Right. Because that happens all the time...

 

[beernbourbon]

Look...Stone management got them in this situation...but it is the workers at the bottom who have to suffer for it...it's that way with most companies...management refuses to take the hit for their miscalculations...Have you tasted that spin off AB brewery AB...

That's your defense? Management sucks and every armchair manager and worker bee out there knows their company better than they do? You mean the same management that built that company from nothing to worldwide distribution? The same management that has kept thousands of people employed for years? The same management that knew what it was like to struggle before they became big? The same management that brought in an extremely intelligent individual with a track record of success that most people could only dream of to run the day to day operations exactly because they were smart enough to know when they had reached their knowledge and experience threshold??? Is that the management to which you refer?
Then again don't know why I bother, these kinds of discussions are never ones of equal intellect.

 

[Brewenstein]

That's your defense? Management sucks and every armchair manager and worker bee out there knows their company better than they do? You mean the same management that built that company from nothing to worldwide distribution? The same management that has kept thousands of people employed for years? The same management that knew what it was like to struggle before they became big? The same management that brought in an extremely intelligent individual with a track record of success that most people could only dream of to run the day to day operations exactly because they were smart enough to know when they had reached their knowledge and experience threshold??? Is that the management to which you refer?
Then again don't know why I bother, these kinds of discussions are never ones of equal intellect.

QFT since I can't "like" a post more than once. Best post I read today.

 

[WaltStarr]

I find that typically, layoffs are a sort of last resort for companies that find they've over reached in expansion efforts and must dial back for a time in order to ensure future success. Layoffs always come at a high cost beyond dollars and cents, affecting morale and perception of a company. Management knows this and only lays off when it has become absolutely necessary for the future of a company.

 

[JDWebb]

One thing to remember, companies don't do business because they're bored, of they have the prettiest product, or the tastiest one, they do business to make money. THAT is the bottom line. Consumers will always think they come first, they don't. The profit line does. If you don't believe that, don't ever start a business or you will fail.

 

[hooper]

That's your defense? Management sucks and every armchair manager and worker bee out there knows their company better than they do? You mean the same management that built that company from nothing to worldwide distribution? The same management that has kept thousands of people employed for years? The same management that knew what it was like to struggle before they became big? The same management that brought in an extremely intelligent individual with a track record of success that most people could only dream of to run the day to day operations exactly because they were smart enough to know when they had reached their knowledge and experience threshold??? Is that the management to which you refer?
Then again don't know why I bother, these kinds of discussions are never ones of equal intellect.

Well...Us working folks from the holler could never hope to be on equal inteelect with you gentle folk from up Chicago way...And yes that is the management team, I'm calling out for their miscalculations...and I'm entitled to my opinion that most people who throw the inteellect card shouldn't...

 

[jwelch1103]

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

Please tell me where in the Newark area beer is $0.35 per glass.

35 cents!?

I'll be there. Tomorrow!

 

[kmjloki]

From i gathered from the article i read this morning it sounded like stone may have been constantly bulking up on employees year after year cause they were constantly having large growth every year and they probably are just starting get to the point where they need to normalize.

 

[beernbourbon]

Well...Us working folks from the holler could never hope to be on equal inteelect with you gentle folk from up Chicago way...And yes that is the management team, I'm calling out for their miscalculations...and I'm entitled to my opinion that most people who throw the inteellect card shouldn't...

Lol kinda made my point for me..... I'm not now or ever have been from anywhere near Chicago.

 

[murphyslaw]

The part about Koch's investment in true craft is pretty interesting. $100m investment firm to buy small stakes in craft breweries so they can get cash and grow without "selling out"

 

[hooper]

Lol kinda made my point for me..... I'm not now or ever have been from anywhere near Chicago.

Well..I apologize to the people of Chicago...and especially Cincinnati...