Lagunitas Is Going Global in New Deal With Heineken

by Emily Lee on Sep 10, 2015 in Beer

On Tuesday, Lagunitas Brewing Co. and Heineken International announced a partnership to take the Petaluma-based company’s hoppy craft beers and iconoclastic image across the globe. Some believe this could be the most significant deal yet in the American craft brewing industry.

The size of the deal, along with its international ambitions and the reaction it has generated on social media, eclipses any of the recent mergers and acquisitions transforming the U.S. craft beer industry.

Though best known for its flagship IPA, Lagunitas sells two-dozen different beers with snarky labels as Sucks, Hop Stoopid, and Undercover Investigation Shut-Down Ale, named after a 2005 marijuana bust at the main plant.

Founder and owner Tony Magee described the agreement with Heineken as a 50-50 partnership. Under the deal, Lagunitas will be able to utilize the Dutch company’s global production and distribution network while retaining control over its business operations. Magee will remain chairman, and the marketing, sales, and production teams — as well as its suppliers and distributors — will stay the same.

Still, news of the deal has irritated longstanding Lagunitas fans – a population made up of craft beer loyalists who, by and large, detest the growing corporatization of the industry. Ultimately, the appeal of going global trumped the demands of the craft beer community — which should come as little surprise. In its twenty plus years of operation, the California-based brewery has been expanding constantly.

“There is the whole world to think about,” said Magee, who started running Lagunitas from his own kitchen in 1993. As of 2014, the company is the fifth top-selling craft brewery in the US. “We can partner with one of the world’s greatest family-owned, really beer-centric companies to find our way into all of these markets globally.”

Indeed, it seems as though the global market is ripe and ready for a craft beer expansion. In 2014, craft beer sales jumped 17.6% in the U.S., while the overall beer market grew just 0.5%. As of right now, Lagunitas is already available in the United Kingdom, Sweden, and Japan. Their next international target will be Mexico.

According to Magee, Heineken also stands to gain a lot from the deal. “It would give them a platform for them to tap into some of that excitement around (craft beer). For a long time, they have been one of the world’s great specialty brewers,” said the veteran brewer. “As I learned about their culture, (we) saw ourselves in it. We weren’t very different people at all.”

It’s true. Though Heineken was founded in 1864, the company is still family-owned — controlled by Charlene de Carvalho-Heineken (one of the world’s richest women with an estimated worth of $11 billion).

The deal is expected to close in the fourth quarter. Financial terms were not disclosed though it’s estimated that Lagunitas was valued at roughly $1 billion. 

Photo via Lagunitas Brewing Co.


Tags: Beer
Recent Articles
spacer

Feedback

How are we doing? Tell us what you like or don't like and how we can improve. We would love to hear your thoughts!

*Name:
*E-mail:
*Suggestions:
 
Behind the Bar: Liana Oster of Dante

Behind the Bar: Liana Oster of Dante

For this exciting installment of Behind the Bar, we had the incredible opportunity to sit down with Liana Oster, the head bartender at Dante in New Yo...read more ›

by The Drink Nation Jan 7, 2020
Pabst Blue Ribbon Launches Blue Ribbon Whiskey in Select US Markets

Pabst Blue Ribbon Launches Blue Ribbon Whiskey in Select US Markets

PBR has launched their own whiskey. Let's keep an open mind and see what is inside this bottle....read more ›

by Carrie Dow Sep 24, 2019
The Master Sommelier Scandal is Now the Subject of a New Investigative Series

The Master Sommelier Scandal is Now the Subject of a New Investigative Series

There's a new investigative series about one of the biggest scandals to ever hit the wine world....read more ›

by The Drink Nation Sep 13, 2019
SPONSORED
Drink Nation Store Rectangle
Try These Summer Cocktails This Season in D.C.

Try These Summer Cocktails This Season in D.C.

It's officially summertime in the city, and we can't think of a better way to cool off from DC's heat and humidity than with a cold, boozy cocktail in...read more ›

by Lanna Nguyen Jul 31, 2019
Using Peas to Make Gin Might Lead to More Environmentally Friendly Spirits, Studies Show

Using Peas to Make Gin Might Lead to More Environmentally Friendly Spirits, Studies Show

Scientists may have discovered a more environmentally friendly way to make one of the world's most popular spi...read more ›

by The Drink Nation Jul 23, 2019
Drink a Classic Cocktail for a Good Cause During Negroni Week, June 24-30

Drink a Classic Cocktail for a Good Cause During Negroni Week, June 24-30

Negroni Week 2019 is June 24-30, so drink this classic cocktail for a good cause....read more ›

by The Drink Nation Jun 19, 2019
What to Do if Your Uber, Lyft, or Cab Driver Ever Strays From Your Destination or Makes You Feel in Danger

What to Do if Your Uber, Lyft, or Cab Driver Ever Strays From Your Destination or Makes You Feel in Danger

If you're taking an Uber, Lyft, or cab and feel unsafe, there are steps you can take to protect yourself....read more ›

by Nina Starner Jun 19, 2019
D.C.'s Best Wine Bars

D.C.'s Best Wine Bars

Whether you're a wino or a wine novice, DC is home to a number of wine bars perfect for casual sipping or for expanding your palate. ...read more ›

by Lanna Nguyen May 29, 2019
Behind the Bar: Kat Corbo of The Study & Winner of Speed Rack 2019

Behind the Bar: Kat Corbo of The Study & Winner of Speed Rack 2019

This time on Behind the Bar, we spoke to Kat Corbo of The Study, who recently won Speed Rack 2019....read more ›

by The Drink Nation May 15, 2019
Where to Drink Outside in D.C. During Summer 2019

Where to Drink Outside in D.C. During Summer 2019

Patio weather has arrived! Grab your friends, stake a spot at the bar and take advantage of these outdoor spots for drinking and dining. ...read more ›

by Lanna Nguyen May 14, 2019
SPONSORED
Drink Nation Home Bar Project Bottom Rectangle 2
View all Articles

Sign up to get weekly drinking news, bar reviews, events and more sent directly to your inbox!

Close