Stone Brewing Sells Distribution Rights in Northern California to Matagrano

Stone Brewing Company has sold its distribution rights in Santa Clara County to Matagrano, which will begin distribution of the San Diego-based craft brewery’s portfolio beginning March 1.

“Matagrano has been an incredible partner for Stone, distributing our beers throughout much of Northern California,” Stone CEO Maria Stipp said in a press release. “Together we will leverage Matagrano’s large and reputable distribution capabilities to continue to grow Stone’s brand and we’re hopeful that our SDC supplier partners will join us in this transition.”

Stone’s Stone Distributing is the largest independent wholesaler of craft-only beverages in the U.S., operating across much of the Golden State. Stone had operated a small warehouse in Northern California, where it distributed craft brands Modern Times, Oskar Blues, Pizza Port, JuneShine, Victory, AleSmith, Cigar City and Duvel.

Asked if the other brands would follow Stone to Matagrano, a Stone spokesperson said she could “only speak to Stone’s brand transitioning.”

“We hope others will follow suit,” Stone director of public relations and communications Lizzie Younkin wrote in an email.

Family-owned Matagrano distributes domestic, craft and import beers in San Francisco, San Mateo and Northern Santa Clara counties. The wholesaler sells offerings from Anheuser-Busch, as well as products from Heineken, Sierra Nevada and Lagunitas, among others.

The 16 members of Stone’s distribution team in Northern California will be offered jobs in Southern California or have an opportunity to interview with Matagrano.

“We extend our deepest gratitude to our team members, who did so much for Stone, our supplier partners, and the craft beer market in NorCal,” Stipp added.

The sale of Stone’s rights in NorCal will allow the company to “double down focus” on its distribution business in Southern California, where it holds a 30% share of San Diego’s craft beer market and a 15% share in Los Angeles County, the company said. As part of that commitment, the company said it plans to move into a new, larger distribution facility in Southern California.

Citing Nielsen data, Stone reported that its distribution business increased sales 32% in San Diego and 34% in Los Angeles for the 52 weeks ending December 12, 2020.

As Brewbound previously reported, Stone Brewing added fast-growing San Diego craft brewery Societe Brewing Company and hard kombucha maker Jiant to its roster earlier this month.