Question marks over Stone’s Richmond bistro and Deschutes’ Roanoke brewery

USA | Craft brewer Deschutes from Bend, Oregon, has informed officials in Roanoke, Virginia, that it will not break ground for a production brewery anytime soon, while Stone from San Diego, California, has put plans for a bistro in Richmond on ice. 

In a momentous reversal of America’s settlement, several craft brewers from the western US decided to head east in the early 2010s. But as craft beer’s once buoyant sales have slowed and legacy brewers fight to stem output declines, several had to rethink their east coast expansion plans.

In April 2019, the 31-year-old Deschutes informed officials in Roanoke that it will not break ground for a production brewery in the city of 100,000 people anytime soon.

According to the Roanoke Times newspaper, Deschutes’ President and CEO Michael LaLonde wrote that his company will not submit plans by the 31 August 2020 deadline, nor will it meet a deadline to begin construction by 30 June 2021, effectively putting the whole project on hold.

In 2018, Deschutes decided to purchase 49 acres of land for USD 3.2 million in order to free itself from a string of performance-based incentives in its original deal with the city. Theoretically, the city can now buy back the land.

Only two years previously, Deschutes had announced plans for a USD 95 million brewery in Roanoke, entailing the creation of 100 jobs, to shift some of its production to the east coast – a strategic decision also embraced by Colorado’s New Belgium and California’s Sierra Nevada. Both launched satellite breweries in Asheville, North Carolina, in 2016 and 2015 respectively.

However, in 2016, Deschutes’ output peaked at 440,000 hl beer. It has since declined to 370,000 hl, thus wiping out the need for 175,000 hl of brewing capacity in Roanoke. Nevertheless, Deschutes will continue to operate a tap room and restaurant in downtown Roanoke, which was opened in 2017.

Following Deschutes’ announcement, many wonder what will become of Stone’s plans for a destination restaurant in nearby Richmond, Virginia. In 2014, Stone revealed that it would build a brewery and restaurant in the city of 230,000 people, which would cost over USD 70 million and create nearly 300 jobs. Stone has since established the brewery (in 2016), which reportedly produced more than 140,000 hl beer in 2018, making it responsible for one-third of the company’s total output. But no one knows what will become of the restaurant, which was scheduled to open in 2018.

Originally, the 700-seat restaurant was to go into a renovated warehouse overlooking the James River. In view of the high costs, Stone changed course in 2018 and sought approval to demolish the building, saying it was structurally insufficient for the restaurant project. Instead, Stone wanted to build a new structure on the same site, but withdrew its demolition request late last year.

After Stone’s Berlin experience, maybe founder Greg Koch has got cold feet?