Brewmaster Mitch Steele Is Leaving Stone Brewing Company

Discussion in 'Beer News' started by jbakajust1, Jun 14, 2016.

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  1. TriggerFingers

    TriggerFingers Initiate (0) Apr 29, 2012 California

    Since Stone is opening a location on the east coast and AB is is production in Germany, Stone is a national/international corporation. Non competition clauses can get caught up in the legal world for many years in piles of paperwork. If they solely operated in California I would be inclined to agree with you. No competition clauses are enforceable in Virginia. Since he is the head brewmaster, they could have said to Mitch, we are transferring you to Virginia to oversee operations for the next few years.
     
    #41 TriggerFingers, Jun 15, 2016
    Last edited: Jun 15, 2016
  2. gopens44

    gopens44 Grand Pooh-Bah (3,436) Aug 9, 2010 Virginia
    Pooh-Bah Society Trader

    Probably not an apt comparison for me since I never was a huge Lagunitas fanboy, so I never kept up with all the hubbub over their partial sale or whatever. Don't get me wrong, I have enjoyed some of their stuff, but if they pulled out of VA tomorrow, I wouldn't miss them. Last one I had from them (Citresensinusisieses or whatever...) wasn't great but honestly, their ownership situation didn't cross my mind even a little bit before trying it. For better or worse, I have more respect for Greg than Tony. Just an overall vibe I have always had for the company. As for the financial / ownership situation, I wasn't really "let down" by Lagunitas because I honestly never gave a shit. Stone - that's different to me altogether. Aside from the fact that they are the one company I have ever personally identified with (I consider myself one hell of an Arrogant Bastard), I feel like since they've effectively doubled down on their stance at every opportunity, than selling out would be all the more gut wrenching. I know it kinda stinks that I would have a harsher opinion on Stone selling out but that's only because I think more highly of them and allowed myself to truly take them at their word.
     
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  3. Sparta

    Sparta Initiate (0) Nov 5, 2013 Oregon

    And yet you one upped him... Just look at what several breweries that sold out said before they did. Elysian even put "corporate beer still sucks" on packaging and then sold to AB
     
    BBThunderbolt likes this.
  4. MileHighShooter

    MileHighShooter Initiate (0) Nov 23, 2010 Colorado

    Usry from Breckenridge, just months before selling to ABI, put up a video talking about how selling to big beer was going to destroy the community, and how he would always remain independent....that didn't last long
     
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  5. AlcahueteJ

    AlcahueteJ Grand Pooh-Bah (3,088) Dec 4, 2004 Massachusetts
    Pooh-Bah Society

    That Sucks. :wink:
     
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  6. jageraholic

    jageraholic Maven (1,378) Sep 16, 2009 Massachusetts
    Trader

    Yes, many companies have been very outspoken about how bad corporate beer is and selling out as a independent brewer to the point that it is a trend. But I agree with others that have stated above, with Stone setting up True Craft,

    "True Craft, a company established to invest in craft breweries which are dedicated to remaining true to the definition of craft beer. Representing camaraderie in the industry, True Craft will make minority investments in craft brewers while allowing those breweries to retain their independent soul and control."

    I don't see them selling out.
     
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  7. kaz4121

    kaz4121 Initiate (0) Jan 19, 2011 Massachusetts

    Do you realize Mitch used to work at AB?
     
    #47 kaz4121, Jun 15, 2016
    Last edited: Jun 15, 2016
  8. Alexmc2

    Alexmc2 Pundit (784) Jul 29, 2006 New Hampshire

    Totally agree. Especially not to AB, full disclosure, I'm an AB employee with zero insider knowledge on these deals. I find out when the general public does. But why would AB, after buying another Southern California Brewery (Golden Road), buy Stone? A brewery that is (nearly?) nationally distributed in a variety of wholesaler alignments. It would be a logistical nightmare. I could perhaps see a PE stake, but I just feel like people are way off the mark with this sort of speculation.
     
  9. EnronCFO

    EnronCFO Pooh-Bah (1,969) Mar 29, 2007 Massachusetts
    Pooh-Bah Society

    I suppose, but even then my understanding is that a non compete is tough to enforce on a national basis as I think they generally have to apply to a specific region. Also, if he didn't already have a non-compete and was transferred to VA and made to sign, he'd have to get something in return for signing it (I think). Promotion, equity, etc. and he's already head brewmaster for the firm. But this all seems like a moot point anyway.
     
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  10. Domingo

    Domingo Grand Pooh-Bah (4,206) Apr 23, 2005 Colorado
    Pooh-Bah Society

    Loads of respect for Mitch. Not only for what he has done at Stone, but for his knowledge and studies about brewing history.
     
  11. TriggerFingers

    TriggerFingers Initiate (0) Apr 29, 2012 California

    Perhaps. It could be worded as: "Since you are the head brewer for our company, you aren't allowed to work for any other beer related companies for X number of months, years, etc. or face a fine." If it is AB-inBev the lawyers would be on their game and paperwork would be a mile deep.

    Its all speculation at this point, but it could have all come down to: "these are the terms" of the AB-InBev, Constellation, etc. offer. If there was some type of vote, maybe it didn't go his way? Or he was unhappy with the terms or future direction?

    Either way....

    I wish him well.

    Only time will tell with the direction of Stone.
     
  12. shyblee

    shyblee Initiate (0) Nov 1, 2015 Iowa

    I always assumed that they set-up Arrogant Bastard Brewing Co. to exclude it from the portfolio of Stone's beers that would be sold.
     
  13. BottleCaps80

    BottleCaps80 Initiate (0) Jan 12, 2013 Iowa

    Honestly, that's more of a marketing move than anything. Same way they set up "Stochasticity Project" as a subsidiary of Stone, so they could almost market it separate. I don't think Arrogant Bastard Brewing has anything to do with a sell out. Companies set up subsidiaries all the time, mainly to market them differently than their other products.
     
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  14. Domingo

    Domingo Grand Pooh-Bah (4,206) Apr 23, 2005 Colorado
    Pooh-Bah Society

    While I have absolutely no issue with anyone "selling out," Stone always struck me as one of the least likely to do so.
    At least as long as Greg is involved.
     
  15. hopfenunmaltz

    hopfenunmaltz Pooh-Bah (2,611) Jun 8, 2005 Michigan
    Pooh-Bah Society

    When Dick Cantwell left Elysian he was reported to have a 3 year non compete in the PNW only.

    You can't keep someone from making their living indefinitely.
     
    DovGibor likes this.
  16. Giantspace

    Giantspace Pooh-Bah (2,879) Dec 22, 2011 Pennsylvania
    Pooh-Bah Society


    Until the PE firm wants their money back and sells to another group or AB. Victory just build a new facility and now has new beers almost monthly it feels like. Most are forgettable. Feels like the PE firm saying we need more new beers on the market. From what I remember reading the original Victory owners now own about 10% of the brewery. Does not feel like the same brewery I have supported from day 1. I had a keg of hop devil at my wedding just a couple months after victory opened. I am all good with them selling. Everyone has a right to do what they feel is right for their business. I am not upset. I just keep on drinking what I like regardless of who brews it for the most part.

    Enjoy
     
    FatBoyGotSwagger likes this.
  17. zid

    zid Grand Pooh-Bah (3,058) Feb 15, 2010 New York
    Pooh-Bah Society Trader

    This thread is a little gross. What started out as a "thanks and good luck Mitch" thread quickly turned into a "will Stone sell the company and is their shtick just posturing" thread all because someone not here "hinted that a major brewery in California will be selling part of their company."
     
  18. spacecake9

    spacecake9 Pooh-Bah (2,178) Apr 26, 2014 Illinois
    Pooh-Bah Society

    Good luck Mitch!
     
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  19. Scott17Taylor

    Scott17Taylor Initiate (0) Oct 28, 2013 Iowa
    Trader

    Honestly this could be a good thing, the more awesome breweries the better. Stone will be fine and now Mitch might be able to even more great beer someplace else.
     
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  20. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,181) Dec 15, 2005 Pennsylvania
    Pooh-Bah Society

    Jeff,

    BIG DISCLAIMER: I am not an attorney.

    From my perspective it comes down to the terms of the deal. Both parties have to come to a sales agreement. Maybe AB would start off with a nationwide non-compete in the initial proposed sales agreement but that would only 'work' if the selling parties would agree. Maybe the agreement arrived at the PNW restriction after some level of negotiation?

    Cheers!

    Jack
     
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