Heinekenitas
Heingunitas? Laneken?
- Thread starter afro_lou
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1977Brewer
Free Dan Hess.
Grannyknot
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Except, this is nothing like a joint venture.
Decent biz insider article on the sale and why it was done. Sounds like maybe the original investors started clamoring for a hefty buyout.
http://www.businessinsider.com/the-...al&utm_source=twitter.com&utm_campaign=buffer
normonster
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Yep, that article is what I am expecting. It happens, that is what corporations do. They can't help it.
Helloworld
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[ame]https://www.youtube.com/watch?v=snhiofL2Rh4[/ame]
slym2none
"Lazy extract brewer."
Founders already acquired foreign distribution with their deal last year. It was a smart move, and I think this is a smart move for Lagunitas.
Let's face it, we all thought craft beer should be expanding. We all wanted to see craft beer in every store in all flavors. This simply cannot happen unless some of them focus outside the country. It's getting to the point where there is a saturation of craft beer in retail stores. The craft beer expansion has started to require small, local breweries. For the bigger craft beer companies, global expansion is the nearly the only option left, and it makes dollars and cents to get global distribution from a company who already has it.
Heineken obviously sees growth in the global craft beer market, as many in the industry do. They make money by distributing a well known and admired beer company and increasing sales. Lagunitas also likes the deal because it saves them from the expense of building their global distribution the old fashioned way. Ideally their beers will become a well-liked gloabl phenomenon and everyone wins.
If people dont' like it, there is always another small craft brewer waiting for people to start buying their beers.
Let's face it, we all thought craft beer should be expanding. We all wanted to see craft beer in every store in all flavors. This simply cannot happen unless some of them focus outside the country. It's getting to the point where there is a saturation of craft beer in retail stores. The craft beer expansion has started to require small, local breweries. For the bigger craft beer companies, global expansion is the nearly the only option left, and it makes dollars and cents to get global distribution from a company who already has it.
Heineken obviously sees growth in the global craft beer market, as many in the industry do. They make money by distributing a well known and admired beer company and increasing sales. Lagunitas also likes the deal because it saves them from the expense of building their global distribution the old fashioned way. Ideally their beers will become a well-liked gloabl phenomenon and everyone wins.
If people dont' like it, there is always another small craft brewer waiting for people to start buying their beers.
johngaltsmotor
Well-Known Member
I guess it is about the same as going for a full on IPO (I by habit typed IPA there) and then having Heineken or someone else buy up enough shares to make it a hostile takeover and lose control (although 50/50 in a business deal never works out well).
Why when they're looking to spread American craft beer to the rest of the world does it have to be a foreign company though? Wouldn't it be better for the craft brewing association to work on the marketing without screwing with each brewers corporate structure?
Why when they're looking to spread American craft beer to the rest of the world does it have to be a foreign company though? Wouldn't it be better for the craft brewing association to work on the marketing without screwing with each brewers corporate structure?
Grannyknot
Well-Known Member
It sounds to me like they really had no other option. The business insider article hints that investors who had helped start the business in 99/00 were probably tired of getting meager returns each year and thought the company had grown big enough to be bought out of their shares. I guess you can never truly enjoy a successful investment until you cash it in.
The above is just speculation of course, but if true, I'd have to fault Lagunitas for not having a business plan to one day buy out their investors, either through employee ownership, or just outright ownership from working capital.
The above is just speculation of course, but if true, I'd have to fault Lagunitas for not having a business plan to one day buy out their investors, either through employee ownership, or just outright ownership from working capital.
arturo7
Well-Known Member
So you can either be a debt-ridden regional brewer or well-financed world player. Hmmm... I think they made the right choice.
Congratulations to Lagunitas
While I AM slowly coming around to the idea, I still don't like that it's Heineken. Also, I can't imagine that they were "debt-ridden" at all. They were extremely successful not only regionally, but nationally. I know that there is quite a lot more going on than what is being written and talked about, but I'm sure that given a few more years, they could have easily done what Stone did with their international business. This is certainly a quick shortcut though.
arturo7
Well-Known Member
The debt would have come from raising the cash to pay off the owners who wanted out.
Grannyknot
Well-Known Member
if you "raise" cash, you don't have debt.
this is why I mentioned the business plan. where there would be a practice of putting some cash reserves into an investment each year, with the intent of using it along with the returns after it matures to purchase your company outright from investors.
this is why I mentioned the business plan. where there would be a practice of putting some cash reserves into an investment each year, with the intent of using it along with the returns after it matures to purchase your company outright from investors.
Ill never understand getting mad at a brewery for being able to have someone buy their brand. Dont get all butthurt because they didnt consult you before they cashed out. Theres alot of little guys, me, that would love to have someone bigger swoop in with some cash. So if it really peeves you get out there and find the newest small guy and pump the money you are withholding from Lagunitas and give it to them.
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Been thinking about this as the thread continued. I am not mad at any of the recent brewers who have found a way to keep their beer alive and growing business wise. Our local place had no family to take over, there was no other way than to be bought out. I get it. Also there are many reasons that someone would want to try to find a partner to grow the business...and that is what these people are doing....business.
But, long experience has taught me, the bigger partner will always try to 'help' the other, to tighten things up to make things smoother, to fine tune...
....and not once so far has it helped the beer. I am sad for the beer, no angst toward Tony, good for him.
worlddivides
Well-Known Member
Lagunitas is among my top 10 favorite craft breweries, and I have never really liked Heineken, but I personally can't fault them for doing this. If this were a complete buy-out, then I would have been very disappointed and sad, but I don't really see their recipes changing or their beer going down in quality or them suddenly becoming a lot more expensive or anything like that. If anything, this is a good thing for Lagunitas and I probably would have done the same thing if I were in Tony's shoes. :shrug:
N4teTheGreat
Well-Known Member
It is what it is I guess. I dig their beers though I've gotten bored with their IPA since it is on tap seemingly EVERYWHERE in the bay area. Their cappuccino stout is one of my favorites along with gnarly wine and hop stoopid. Even more awesome when I can get their bombers for 5.99 when most everything else is coming in at 8 or higher. As long as they don't change that or their beers, I'll keep drinking them.
Come to think of it, the imperial pils is pretty sweet on a hot afternoon.
-- Nathan
Come to think of it, the imperial pils is pretty sweet on a hot afternoon.
-- Nathan
