(Escondido, CA) – Stone Brewing CEO, Greg Koch, does his best Twisted Sister impression.
Stone beers are being shipped to countries where Stone doesn’t officially distribute and Koch is not gonna take it. Australian Brews News reports that Stone beers are illegally (may just be breach of contract) being imported to Australia along with beers from Sierra Nevada Brewing and Flagstaff Brewing. Quite different from trading with an overseas buddy, these beers are actually available for sale on shelves without an importer’s stamp on them. A U.S. distributor (or multiple distributors) is likely either a) disposing of old product the easy way to a region starved for American-made craft beers that, otherwise, can’t get them or b) are making a quick profit by charging importers in other countries a premium for them….or some combination of both.
Some in Australia are applauding those distributors and retailers partaking in this “grey market” as Robin Hood-like saviors but the breweries aren’t happy about it. Koch is stern about the damage this causes for his brand in the video above and Sierra Nevada stands issues a decisive statement on the matter in that post on ABN. Where possible, small brewers are increasingly moving toward all-refrigerated distribution as a way of upholding the quality of their beer during long periods of travel to the point of sale. It would seem that Stone and Sierra Nevada aren’t big on the idea of legal exporting either. Stone is even going to the lengths of looking into opening a European brewery rather than ship beer there.
On the other hand, there are many small brewers who view *legal* exporting as perfectly fine. In fact, the Brewers Association has been heavily pushing its export development program and has another shipment going to the UK through Vertical Drinks sometime this winter. One of the leaders in the craft beer export program, Rogue Ales is even available legally in Australia and as far as Asia. But it makes one wonder…how do the quality of these exported beers compare to the same brews available on shelves here?
The shady practice of distributors sending around bootleg brews isn’t exactly a new one. A New York City bar was caught with 50 cases of New Glarus Spotted Cow at this time last year. This past summer, New Belgium Fat Tire meandered into another New York City bar somehow…despite not being distributed in New York.
Then there are the stories about people hand-bottling beers from bars for their friends. A Google search for “hand bottle” on the two largest beer sites on the internet, Beer Advocate and RateBeer, yields around 4,000 results. Most brewers would probably contend that they don’t want their beer reviewed at all if not served directly on tap or from one of their own bottles.
The issue came to somewhat of a head in 2008 when a 3L bottle of one of the top-rated beers in the world at the time, Struise Black Albert, was shared at a tasting party. The bottle did not travel well and some of those who tasted the beer posted poor ratings online. The issue caused much strife as it affected Struise’s reputation as a beermaker.
No matter where you stand on these issues, it serves as a reminder of just how much selection many of us craft beer drinkers have here in the U.S. in 2010. In the spirit of Thanksgiving, that is something for which to be very thankful.
I definitely see where Greg (and anyone else in his position) is coming from. But one cannot take too seriously a beer “review” from your average, everyday contributor to those forums. Much of it is subjective. However, anyone attempting a “review” on a beer – with knowledge that the beer was “bootlegged” is idiot. The review becomes comical.
Beer always comes first. Try it fresh yourself and you be the judge.
Despite the report you linked to on Eater, the bar in question in NYC was never selling Fat Tire or any other New Belgium product. It was erroneously reported, likely to generate buzz for the restaurant’s opening.
I would like to correct you on the use of the term ‘illegal’ in this story. There is no mention in the Australian Brews News article of the practice being illegal.
Although the ethics of what is happening can be debated there is nothing illegal happening. The products are purchased legitimately in the US and then shipped to Australia where the correct taxes are paid.
Just because Stone does not condone the practice does not make it illegal.
He comes off like an arrogant douche. I’ve drink fresh stone beer and I still think its one of the more over rated breweries. They are like the BMC of craft beer.
Wow, looks like you are correct. http://3.ly/rSzR
Illegal? Guess not. Breach of contract? Perhaps, maybe even likely.
I’m not a lawyer but I would expect that it’s only a contract issue in the US and only if Stone get their distributors to sign an agreement stating that they won’t allow export of the product.
It would be great to get a proper legal opinion on that.
As Stone don’t have a distribution deal with anybody on this side of the Pacific I can’t see any legal issues here as long as the product has a sticker placed on it outlining the required information such as ABV.
Let me first say that I’m a huge Stone fan and I buy their beers on a weekly basis. I live in Riverside, CA, which is only an hour from Escondido and something that Greg mentioned about shipping their supply in refrigerated units struck me as odd.
There are two very large chains that I can buy Stone bottles from and they both offer them on a shelf and not in a refrigerated unit. Is there a difference between those bottles sitting on a shelf in California for a few weeks or sitting in a shipping container for a few weeks? Will the bottle of 10.10.10 Vertical Epic that I have sitting in a closet until 2012 taste any different once it’s shipped down under?
I could be gravely naive, these are just the questions that popped into my head while watching the video.
To me Greg doesn’t come across as arrogant, he is a person who produces a product and is responsible for it. He wants to be able to control the reputation of his beer. There are Brew pubs that won’t bottle or even fill growlers because of the perceived degradation of the beer.
It is frustrating that this philosophy can get in the way of getting the product but I completely understand his point. A while back I was in Maryland and was able to find Stone Ruination, it was very good but in comparison to the getting on draft at Stone it’s self it doesn’t compare. I can’t imagine what would happen in the time it takes to get across the globe. the first time I tried Dogfish Head’s 90 min IPA I thought is was swill but it was on tap at Stone Brew’s restaurant so I figured I should give it another try and it was great. If I did not trust the people that run the bar at the Stone Restaurant to know a good beer I would still think that Dogfish Head brewed mediocre beer.
Pingback: GTWF Ep 25: Silver Cans for Breakfast | Getting Tanked With Frank
I understand Greg’s concern for fresh beer and what old beer does not only to Stone’s name but craft beer in general but as a spokesperson for craft beer and his brewery he needs to be a bit more professional. I do agree with the comments that he does come off as a bit of a douche. Quick witted responses and facial gestures were just embarrassing. I do enjoy Stone’s beers (or did since I live in WI). His blanket statement of WI not having a large enough craft beer market for Stone is completely false. Let’s look at New Glarus Brewery…where do they distribute? Only WI…are they able to run and sustain a craft brewery? This year’s sales volumes show Stone at #15 and New Glarus at #22. Producing over 100,000 barrels of craft beer for just the state of WI seems like a pretty large craft beer crowd to me. How many states does Stone distribute too? Looking at your distribution map on your website, it looks like you have quite a few states covered. How many barrels did you sell last year? 98,000?
Very interesting interview. Greg didn’t come across as arrogant to me – the interviewer refused to grasp the concept that Stone won’t willfully sell an inferior product and ruin its reputation.
I do have 2 points of contention re: things discussed in the interview. One, I have purchased warm (or “dry” as he put it) Stone at BevMo in AZ on several occasions. Large bottles of Arrogant Bastard and Ruination were positioned at the end of the aisle on sale. Two, he mentioned that Stone pulled out of Wisconsin because there was not enough interest in craft beer there. With outstanding craft breweries such as New Glarus (who by the way does not ship outside of Wisc.) and many other small breweries, there is a great deal of competition. Perhaps this is why Stone did not do as well as they had anticipated.