Stone Brewing Co. owner said he considered other areas but chose North County roots

By: ELENA CRISTIANO - For the North County Times | Saturday, June 26, 2004 10:28 PM PDT ∞

Stone Brewing Co.'s recently announced move from San Marcos to Escondido is bad news for San Marcos and good news for Escondido, but perhaps even better news for the North County region as a whole.

Charlie Schaffer, San Marcos' director of developmental services who oversees economic development for the city, minimized the immediate revenue loss from Stone's impending move to Escondido in late summer or early fall. Schaffer said the brewery's current role is primarily one of wholesale manufacturer and only property taxes are at issue.

However, he said that future revenue losses could be significant as Stone plans a $10 million expansion to include room for an increase in production, plus a tasting room and possibly a restaurant.

Schaffer said San Marcos worked hard to try to accommodate the needs of Stone and regrets being unable to help find a larger location in the city for the expanding brewery. But city officials are pleased the brewery found a suitable spot in the region.

"It is important to North County to keep growing businesses here," said Schaffer.

Since opening in 1996, Stone has become the largest independent specialty beer wholesaler in Southern California and is one of the fastest growing companies in the nation.

Schaffer said that it is not uncommon for business to relocate from one city to another within the area and is proud of the high level of cooperation between the different communities.

Steve Wagner, Stone's president, co-founder and brew master, agrees.

"San Marcos was great throughout this process and was always our first choice," said Wagner. "Unfortunately, their hands were tied."

Expanding its current location would have meant a significant interruption in production, an unacceptable option for a company that is working around the clock to try to keep up with demand. The new facility's brewing capacity will increase from 34,000 barrels to 200,000 barrels per year.

Wagner said they would have ultimately considered places like Temecula or Chula Vista, but limited their search to the North County because Stone's roots are here.

"Our staff has gotten us where we are, this is where they live, and we wanted to do all we could to keep them," said Wagner. "Also, this is our strongest sales area ---- we are the local beer."

Meanwhile, the founders of Stone have put the word out to other microbrewers that the 26,500-square-foot space off of Rancheros Drive, along with all the equipment, will soon be up for grabs.

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