S.C. learns lessons from Stone Brewing finalists
Ending widespread speculation, Stone Brewing Co. has shared its official list of three finalists for its multimillion-dollar eastward expansion — a list that South Carolina isn't on but one that economic development leaders say they can learn lessons from.
The San Diego-area brewery — the nation's 10th-largest craft beer producer — revealed over the weekend that it has narrowed its final cities to Columbus, Ohio; Richmond, Va.; and Norfolk, Va.
"We do not have a specific date in which we will make a final decision, however, I anticipate an announcement to be made in 30 to 60 days," company spokeswoman Sabrina LoPiccolo said.
The question of why those locations, however, still hasn't been answered publicly by the company.
"Unfortunately I'm unable to share any details beyond the confirmation of cities," she said.
In interviews with GreenvilleOnline, officials who led the recruitment effort said South Carolina, including Greenville, was in the running almost to the end and has learned lessons in the process.
Stone's choice of finalists is due in large part to being centrally located, but the choice also reveals another importance difference, said Brook Bristow, who is general counsel for the S.C. Brewers Association and assisted in recruitment efforts.
Both Ohio and Virginia have vastly lower excise taxes on beer — 18 cents per gallon in Ohio, 26 cents per gallon in Virginia, compared to 77 cent per gallon in South Carolina, he said.
"We can't do anything about where we are, but we can make where we are more attractive for business," Bristow said. "The brewers association's next priority is cutting that tax. Currently, South Carolina has one of the 10 highest excise taxes in the country. That has to change to seriously compete with other states."
The legacy of Stone's flirtation with South Carolina lingers.
This week, Gov. Nikki Haley visited a Columbia brewery for the ceremonial signing of the "Stone Law," which loosened restrictions on beer production and consumption in an effort to make the state more attractive for Stone's $31 million project.
The bill was pushed through the Legislature this spring within a few months after it became clear that Stone was interested in the Palmetto State but needed the ability to produce large amounts of beer while also operating a restaurant, something state law didn't allow.
The quality and abundance of Greenville's water was a main selling point, as was the access to transportation between Charlotte and Atlanta and the gateway to the Atlantic, the Port of Charleston.
Stone indicated in its request for proposals that it wanted to reduce costs of distribution east of the Mississippi. The new facility would be a large-scale production brewery and restaurant expected to draw in $100 million in revenue by year four.
While the effort came up short, they said, the Stone Law has positioned the state for future expansions — such as Oregon's large Deschutes brewery — and have eased the way for breweries already in the state to capitalize on favorable provisions that now allow them to become more of tourist destinations.
"The craft beer industry is booming in neighboring states, and there's no reason we can't have that same economic growth right here," said state Rep. Derham Cole of Spartanburg.
In Ohio, the effort to attract Stone to the CEO and founder's hometown area of Columbus has also resulted in a move to change laws.
Currently, Ohio limits the alcohol-by-volume content of beer to no more than 12 percent, which limits the types of "high-gravity" beers that breweries like Stone produce on a limited basis but to great success.
A bill introduced by an Ohio state representative would raise that limit to 21 percent.
An increase in alcohol content was the first modern victory in South Carolina, when in 2007, the brewing industry successfully lobbied for a cap of 6.5 percent alcohol-by-volume to be raised to 17 percent.