New transaction between HEINEKEN and Lagunitas Brewing Co. will help both brands to expand their presence in and outside of the U.S.
HEINEKEN has acquired a 50% shareholding in the fifth largest craft brewer in the U.S. by volume, Lagunitas Brewing Co. This transaction holds great benefits for both of the involved companies.
The transaction will provide HEINEKEN with the opportunity to build a strong foothold in the craft brewing category on a global scale, whilst it provides Lagunitas with a global opportunity to present its beers to new consumers in a category that is showing exciting international growth opportunities.
Founded in California in 1993, Lagunitas is expected to sell approximately 1 million hectolitres of beer in 2015 from its two world-class breweries in Petaluma, Calif. and Chicago. A third brewery is currently under construction in Azusa, Calif. The brewer has a strong track record of growth, with 2012 – 2014 revenue compound annual growth rate at 58%. The company’s brands include, Lagunitas IPA, A Little Sumpin’ Sumpin’, Daytime, Pils, Sucks, Hop Stoopid and Maximus. Lagunitas has a nationwide presence in the U.S. and the brewer has expanded into a number of other markets including the UK, Canada, Sweden and Japan, offering strong potential for continued growth outside the U.S.
In the U.S., craft beer continues to outperform the overall beer market, and now represents 11% of total volumes. Within the craft segment, IPA is the fastest growing category.
Lagunitas will continue to be led by Tony Magee, its founder and executive chairman, alongside the existing management team and the company will continue to operate as an independent entity.
The transaction is subject to customary closing conditions and is expected to complete in the fourth quarter of 2015. Financial terms have not been disclosed.
“We are very excited to partner with Lagunitas. We recognize and respect the tremendous success of Tony and his team in building one of the great U.S. craft beer brands. We look forward to that same team partnering with us to expand Lagunitas globally, so it can reach parts of the world that other craft beer brands have not,” said Jean-François van Boxmeer, chairman of the executive board and CEO of HEINEKEN.
“This venture will create a way for Lagunitas to let HEINEKEN participate in the growing craft beer category across its global distribution network in places from Tierra Del Fuego and Mongolia to the far-flung Isle of Langerhans. Lagunitas will share in the best quality processes in the world and enjoy access to opportunities that took lifetimes to build. This alliance with the world’s most international brewer represents a profound victory for U.S. craft. It will open doors that had previously been shut and bring the U.S. craft beer vibe to communities all over the world,” added Tony Magee, founder and Executive Chairman of Lagunitas.