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· Posted on
February 21, 2024

Beer giant Lion swallows up craft brewer Stone & Wood for ~$300m

Iconic Aussie brewer Stone & Wood has been bought by Lion, in a deal worth over $300 million.

What's the key learning?

  • Stone & Wood brewery has been bought for $300 million by Lion, who also own Tooheys and XXXX
  • Until now, Stone & Wood have had an independent brand story that's separated them from the big breweries
  • This unique brand story is what made Stone & Wood so attractive to Lion.

Background: Lion is the big alcoholic beverage company that operates across Australia and New Zealand. It owns some classic bev brands like Tooheys and XXXX, but it's also got a big portfolio of craft brewers.

What happened: It's now bought Byron Bay-founded craft brewer Stone & Wood in a deal reportedly worth more than $300 million. 

What else: Until now, Stone & Wood have run with the approachable and independent brewery brand story. In fact, their website even says: "The difference between us and the big breweries is that we’re not owned by a multinational corporation." Not for long though.

So what's the key learning?

💡 An important part of a brand's worth is its brand story. They have an origin...and a history. And we see this big time with food. Carmen's bars were made out of the kitchen of the owner...Nando's peri peri chicken owes its roots to historic Portuguese chicken. 

💡These stories add value to companies. But when you become a big multi-national, and your food and drink becomes mass-produced, you lose your unique appeal. Ya never hear people talking about Carlton Draught's origins...just that big ad.

💡This "story" is why smaller, premium products are so attractive to multi-nationals. And why they often end up snapping them up, even when they promise they'll remain independent.

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