The term “microbrewery” no longer applies to Stone. The company shook off that label when annual production topped 14,999 barrels. Now Stone is what is known in beer circles as a “regional specialty brewery.”
The growth continues. By the end of this year Koch, Wagner and company hope to produce in excess of 25,000 barrels.
Revenues went from $4.0 million in 2001 to $6.0 million in 2002. The company projects $8.3 million in revenues this year.
That record put Stone at No. 21 on the San Diego Business Journal’s list of Fast-Growing Private Companies, which is part of the soon- to-be-published 2004 Book of Lists.
Inc magazine has also taken notice, twice putting Stone on its list of 500 fast-growing private companies.

Beer Talk
Koch says proudly that Stone does no advertising.
That doesn’t surprise Tony Magee, who runs another fast-growing brewery, Lagunitas Brewing Co. of Petaluma, in Northern California.
Magee said few small breweries buy advertising, but that’s not to say small breweries aren’t savvy enough to cultivate relationships with community organizations – including the media.
Reporters, Magee said, can’t seem to pass up a beer story. Special limited-edition products frequently get the media’s attention, he added.
Apparently, a flair for copywriting gets you extra notice.
Earlier this year Stone snagged a mention in The Wall Street Journal with its Arrogant Bastard Ale.
“This is an aggressive beer,” says the label, which was reprinted in the newspaper. “You probably won’t like it. It is quite doubtful that you have the taste or sophistication to be able to appreciate an ale of this quality and depth. We would suggest you stick to safer and more familiar territory.”
A large part of Stone’s marketing is based on attitude. Koch hands out stickers reading “Fizzy yellow beer is for wussies.” Stone’s mascot is a menacing-looking gargoyle.
Eight trucks serve Southern California from Stone’s warehouse. Two more are on order.
To go farther afield, Stone has had to work with regional distributors. It now has 35. Koch said the relationships require giving up some control — which is hard — and replacing that with trust.
Dealing with distributors may get tougher. The distribution industry is consolidating, said Lagunitas’ Magee, and the big distributors that survive may be more inclined to drop small labels.
Frequently brewers don’t compete as much for consumer attention as they do for distributors’ attention, Magee said (adding that Lagunitas products are available in San Diego through Mesa Distributing).
It is also easy to go “a mile wide and an inch deep” in distribution, Magee warned.
For his part, Koch said Stone Brewing’s sales are growing in existing markets.
Stone added New York City, northern Idaho, and Colorado to its distribution network this year.
The company is targeting upstate New York in the year to come.