Stone sets up angel fund for craft brewers willing to sell

In theory this sounds like a good idea. Stone Brewing co-founders Greg Koch and Steve Wagner, on 2 May 2016, announced the formation of True Craft, a USD 100 million company aimed at investing in craft breweries. The new organisation will buy small stakes – no more than 25 percent – of interested craft breweries. That will allow the breweries to expand or fund other improvements without compromising their independence by borrowing from banks, dealing with venture capitalists or selling to the Big Brewers.

Though the goal is clear – offering craft brewers an alternative to selling out to Big Beer – the details are still vague. Like: how much is Stone Brewing or Mr Koch contributing? Who are their partners? Where will True Craft be headquartered? Who will lead it?

Mr Koch assured media that more details will be revealed soon. Both Mr Koch and Mr Wagner have been working on True Craft for more than a year. But it was recent developments which led them to announce this venture before all the nitty gritty was settled. Observers say that Mr Koch was upset by news that an AB-InBev-owned craft brewer, 10 Barrel, was to open a brewpub on Stone’s home turf in San Diego in the fourth quarter this year.

Mr Koch has been a vocal critic of large breweries seeking to acquire smaller craft breweries as a way to crush competition. Together with Mr Wagner, he founded Stone in 1996. It is now the 10th largest craft brewery and the 15th largest brewery overall in the United States.