Lion to permanently close Stone & Wood brewpub

Stone & Wood will permanently close its Brisbane brewpub, owner Lion has announced, in the latest blow to the local beer sector following the collapse of a series of independent brewers.

“Due to rising operational costs and the broader challenges currently facing the hospitality industry, we have made the difficult decision to close this venue,” a Lion spokesperson said in a statement supplied to this masthead.

The brewpub’s final day of operation will be November 21.

Lion took control of the Stone & Wood Brisbane brewpub as part of its 2021 acquisition of Fermentum, the independent craft beer group founded by Brad Rogers, Ross Jurisich and Jamie Cook.

The decision to close the brewpub comes as tough headwinds continue to batter hospitality venues, and the craft brewing segment of the beer industry in particular.

The Australian economy’s run of high inflation in 2022 and 2023 was reflected in more expensive ingredients, with the cost of high-quality hops, malt and barley rising by about a third, and the price of carbon dioxide rising by about 50 per cent in one year alone.

Energy costs also soared, with one brewer in South Australia telling Good Weekend that his power bill had more than doubled from $237,000 to almost $600,000 in the 2023-24 financial year.

Independent brewers have borne the brunt of the onslaught, with more than a dozen operators across Australia being pushed to the brink of insolvency in the 12 months leading up to March 2024.

In Brisbane, Salisbury-based Ballistic Beer Co went into voluntary administration in early 2023 before being saved from liquidation by a consortium of new investors. In March this year, local craft beer pioneer Newstead Brewing Co closed permanently.

Major-owned craft operations are insulated but not immune from these pressures. In 2023, Lion chose to shutter Victorian craft operation Two Birds, which it had picked up as part of the Fermentum acquisition.

The Kirin-owned Lion insists, though, that the Brisbane Stone & Wood closure doesn’t reflect the overall health of the popular brand.

“We remain committed to investing in the long-term success of the Stone & Wood brand and while we have made the difficult decision to close the microbrewery, our home in Byron Bay remains open and welcomes visitors,” the spokesperson said.

“This decision does not reflect the strength of Stone & Wood, which continues to be one of our most recognised and valued brands.”

The 150-seat, eight-hectolitre Brisbane Stone & Wood brewpub opened in November 2019 inside the heritage-listed Trails Ltd Ice & Cold Stores on Bridge Street in Fortitude Valley. It pours Stone & Wood’s regular line-up alongside limited-edition beers brewed in-house.