Why is Lagunitas so cheap?

Discussion in 'Beer Talk' started by Roybert, Jan 5, 2019.

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  1. Roybert

    Roybert Initiate (0) Oct 2, 2014 Texas

    My take is they are going for the walmart strategy. By using their deep pockets to uncut the competition on price, they gain more and more market share.
     
    #41 Roybert, Jan 6, 2019
  2. jesskidden

    jesskidden Grand Pooh-Bah (3,145) Aug 10, 2005 New Jersey
    Society Pooh-Bah Trader

    #42 jesskidden, Jan 6, 2019
  3. omlooper

    omlooper Initiate (0) Apr 25, 2008 Missouri

    As always, I think of a David Letterman quote.

    “How do we do it? Volume, Volume, Volume!!!”
     
    #43 omlooper, Jan 6, 2019
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  4. CrimeDog

    CrimeDog Zealot (749) Dec 31, 2015 New York

    They weren't jokes.
     
    #44 CrimeDog, Jan 6, 2019
  5. StJamesGate

    StJamesGate Grand Pooh-Bah (3,766) Oct 8, 2007 New York
    Pooh-Bah Trader

    I asked this exact question at a TTO with Lagunitas sales reps behind the bar.

    The answer I got was:
    1. Super long-term contracts with the same hop growers year after year
    2. "Tony doesn't really care about making a big profit."

    (This was right before the Heineken sale; I might take reason #2 with a grain of salt...)
     
    #45 StJamesGate, Jan 8, 2019
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  6. Donco

    Donco Pooh-Bah (1,639) Aug 12, 2013 Pennsylvania
    Pooh-Bah

    Except Java Cask, which is very high priced....but IMO worth it (great beer).
     
    #46 Donco, Jan 8, 2019
  7. rgordon

    rgordon Pooh-Bah (2,701) Apr 26, 2012 North Carolina
    Pooh-Bah

    I sometimes buy Lagunitas IPA at Costco for $26.99 a case. It is always good and fresh.
     
    #47 rgordon, Jan 8, 2019
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  8. SudsDoctor

    SudsDoctor Pooh-Bah (1,739) Nov 23, 2008 New York
    Society Pooh-Bah

    Lagunitas and FW IPAs (Sucks & Union Jack) are comparably priced in my area – $12.99 on average per six pack. Which is a reasonable price...in my area. :rolling_eyes:
     
    #48 SudsDoctor, Jan 8, 2019
  9. JackHorzempa

    JackHorzempa Grand Pooh-Bah (3,375) Dec 15, 2005 Pennsylvania
    Society Pooh-Bah

    Are you in the NYC metro area (including Long Island)?

    Cheers!
     
    #49 JackHorzempa, Jan 8, 2019
  10. SudsDoctor

    SudsDoctor Pooh-Bah (1,739) Nov 23, 2008 New York
    Society Pooh-Bah

    Indeed I am.

    Cheers.
     
    #50 SudsDoctor, Jan 8, 2019
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  11. Ahonky

    Ahonky Initiate (0) Feb 13, 2018 New York

    Economies of scale, smart ingredient contracts (I presume) and smaller margins taken.
     
    #51 Ahonky, Jan 8, 2019
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  12. FatBoyGotSwagger

    FatBoyGotSwagger Grand Pooh-Bah (3,999) Apr 4, 2009 Pennsylvania
    BA4LYFE Society Pooh-Bah Trader

    So good business ethic, a little bit of luck getting large enough to make it happen and not being greedy in the end. Those cheap bastards!
     
    #52 FatBoyGotSwagger, Jan 8, 2019
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  13. AWA

    AWA Savant (1,195) Jul 22, 2014 California

    Honestly I never even try to check the dates. I really don't think I've ever had an old Lagunitas. Granted, I'm only a few hours from the brewery, but still.
     
    #53 AWA, Jan 9, 2019
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  14. unlikelyspiderperson

    unlikelyspiderperson Grand Pooh-Bah (3,966) Mar 12, 2013 California
    Pooh-Bah Trader

    I will second this and add that their hops seem to hold up pretty well. Some people just don't like their profile which I get, but unless it's straight gathering dust I wouldn't worry much
     
    #54 unlikelyspiderperson, Jan 9, 2019
    scream likes this.
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