Lagunitas Personal Post About Merge With Heineken

Discussion in 'Beer News' started by DogTown, May 4, 2017.

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  1. DogTown

    DogTown Initiate (0) May 17, 2006 California

    Greetings Beer Lovers…

    Today we’re announcing our decision to connect Lagunitas completely with Heineken. Last December I realized that the more exiting way forward was to pull the future towards us and fully commit to our relationship with our partner. Some who don’t fully understand it all may say it is selling out. Truth is that we did then, and are now ‘buying in’… Money has value and equity has value too. I am using Lagunitas’ equity to buy deeper into an organization that will help us go farther more quickly than we could have gone on our own. You hafta imagine Jonah standing on the gunnel of the storm-tossed ship and willfully leaping into the mouth of the whale to embrace the transformation and emerge to become his own destiny.

    I’ve been laying low on social media for the last 19 months, mostly because it has been a time of listening and learning, not a time of talking. A time of working hard too, drinking, as it were, from the proverbial firehose. With the initiation of our partnership with Heineken I realized that that Lagunitas had been 22 years a start-up brewery and only recently has become a real business.

    I’ve learned in the last 19 months that even though it’s a big world, it’s also a small world, especially when it comes to brewing and meeting beer lovers in other countries. The things we have learned about beer lovers here in the U.S. are true almost everywhere else. However, compared to the rest of the world, the ways beer gets to market in the US is pretty open and even civilized! I also learned that our new partner is very serious about its partnerships, it’s actually a cultural thing unique to the Dutch. How, I ask rhetorically, is it that a kinda tiny lowland country ever became a global colonial power? Heck, NYC was once called New Amsterdam. They even conceived the first stockholder-owned company and established the first stock market to make those shares liquid. They are all about partnerships.

    During this time of working together in new countries, handshakes, small tensions, and long conversations over beer, we have really gotten to know each other and an incredible level of mutual resect has emerged. We have not been a division of a division of an operating unit. We have been a living Lagunitas operating inside of the organism of Heineken. Most of my time has been with the interesting fella who manages all of the Op Cos within a place they call ‘the Americas’ (from Yellowknife to Tierra Del Fuego) and with their CEO, Jean-Francois.

    I don’t want to seem pretentious, I still successfully wake and bake most days, and I put Sriracha on everything. I’m personally kinda different than the disciplined leadership of a global concern, even ones that live in ole Amsterdam. Yet somehow they recognize Lagunitas and our ideas of beer and community as a missing puzzle piece in their world. I had a strong sense from the start that we would find a way to play a larger role within Heineken.

    They are a very big company and we are a small company but at the core we both want the same things. We wanna make the best beer we can, be willing to have adventures, to treat the people we connect with along the way genuinely, and to be ready for what comes next.

    Heineken is very decentralized which is to say that although the headquarters in Amsterdam truly is the font from which the company flows, it has Op Cos all around the world who live in their respective countries and are rooted in the profoundly different cultures that make up this world. The Op Cos are very autonomous and answer to beer lovers around them. By going deeper into the heart of Heineken we will be able to build a bridge from the vision for Craft beer that Amsterdam shares with us and the OpCos who know their beer lovers and run their businesses to be closer to them.

    The revolution in brewing and in beer culture that began at 1705 Mariposa Street in San Francisco has metastasized to every corner of the world. Time is passing and recently a friend of mine sent me a picture of a tap handle that he saw while visiting CapeTown. The beer beneath the handle was called “Californication IPA”. Surely a compliment to the roots of things but, dammit, I wanna pour mine there next to it! Right? Not to crowd it out, just to be there to celebrate it and to participate. So it was time to get moving. I had a partner that would help me but the limits that we intentionally built into the Joint Venture were becoming obstacles to progress with a now-trusted partner who wanted to give us the latitude to pursue these global opportunities.

    For the last several years I’ve been the Executive Chairman of Lagunitas. In early 2015 I brought in CEO Maria Stipp to do CEO stuff better than I could. I will still be the Exec Chair going forward. No change to that. The ‘executive’ part of my title indicates that I can jump in wherever at the brewery and cherry-pick projects that matter and that maybe only I can do. For instance, I still name many of the beers, design labels, and I collaborate with Jeremy Marshall (our Brewmaster) about ideas of order for new recipes and other brewing adventures. I did the layout of the Azusa brewery and began the ideas of partnering with smaller breweries around the country. I’ll do more of all of that. Everyone at the brewery today from Petaluma to Charleston will still do that voodoo they do so well. I will remain the at the molten center of Lagunitas and I wouldn’t leave it for anything.

    Along with working as Exec Chair for Lagunitas I and my team will be serving in a special consulting role to Heineken’s Executive Board in Amsterdam as the Director of Global Craft. We will be working alongside the Chief Commercial Officer to help lead their approach to small brewing as it emerges in the rest of the world. This is the most humbling and simultaneously energizing ‘next-phase’ imaginable to me.

    I’m not entirely sure that beer-lovers care very much about our experience in business and in brewing. You care about beautiful beery offerings. I do too, but I thought you’d like to hear some of the why in it it all.

    There may be talk about corprocratic this or that and ideas of domination or selling out, but the words above reflect what I am aspiring to and where I hope Lagunitas and beer lovers will take us. Some feared regression to the mean 19 months ago when we announced our partnership and since then we’ve released the Aunt Sally Ale, the Waldo’s Ale, The 12th of Never, Born Yesterday, Dark Swan, Citrusinensis, Davey Murray Ale, and other adventurous non-corprocratic brews. We are far from done! I can’t wait to see what happens next. I hope you all follow long. We will surprise you…again! Cheers to you, beer lovers…

    Tony Magee
     
  2. Harrison8

    Harrison8 Grand High Pooh-Bah (6,285) Dec 6, 2015 Missouri
    Pooh-Bah Trader

    Thanks for sharing your thoughts and perspective on this. You certainly bring a different perspective then we have here as consumers.

    It is tough to not call it a sell-out, particularly from our perspective. There was an exchange of funds, and ownership was passed on; however, I don't see sell outs alone as the problem with big names acquiring craft names. The real issue is when those big names use their power to strong arm other small names out of the market. The small breweries may still provide excellent beers, but they just can't compete with all of the connections and money of the big names.

    Regardless, I think you'll find folks here are rooting for Lagunitas. High West-ified, Waldo, and Born Again are all very well received - especially at their price point. Keep producing tasty beer, distributing it ethically, and keep those prices where they are now or lower and you'll continue to have fans.

    Cheers.
     
    Alpar, Chipotle, 5thOhio and 25 others like this.
  3. Leebo

    Leebo Initiate (0) Feb 7, 2013 Massachusetts

    What ev. Best wishes. Yet another reason not to buy some west coast conglomerate. Buy fresh, buy local. Support your local brewer. In two years will any of the employees still be there? Just a name on a bottle with a recipe? Going national is the only path to success? I too would want to see a reward for all the sweat equity. Out.
     
  4. Urk1127

    Urk1127 Grand Pooh-Bah (3,790) Jul 2, 2014 New Jersey
    Pooh-Bah Trader

    It's great to see it from their prospective. I doubt many people would turn down such an opportunity. Good luck to them. I've been and will continue to be buying their beers. Simply because they taste good.
     
  5. mudbug

    mudbug Pooh-Bah (1,762) Mar 27, 2009 Oregon
    Pooh-Bah

    Go for it Tony! I want to be able to buy Lagunitas in Costa Rica and Mexico, I'm sure Australia is very happy too.
     
  6. Harrison8

    Harrison8 Grand High Pooh-Bah (6,285) Dec 6, 2015 Missouri
    Pooh-Bah Trader

    Exactly my sentiments. While I don't like hearing about buy-outs, I really don't know that I could turn down the opportunity to cash out. Especially if I could continue to work within the brewery.

    I have a hard time believing most folks here would deny that opportunity too.
     
  7. JackHorzempa

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

    That would be an interesting poll if you want to start that thread.

    Lots of BAs post their displeasure when they read threads about breweries "selling out" since they highly value independence; they prefer to purchase craft beer from independent craft breweries.

    Cheers!
     
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  8. Urk1127

    Urk1127 Grand Pooh-Bah (3,790) Jul 2, 2014 New Jersey
    Pooh-Bah Trader

    For myself personally I value independence. But I can't say yes or no if I'd 20 years from now get flash a several million dollars and sell or not. I feel knowing myself I'd not do it but if I can make money to help the brewery and stay a part in it I think I would sell.
     
    Tripel_Threat likes this.
  9. rgordon

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

    Lagunitas is to The Grateful Dead as Wicked Weed is to the latest winner of The Voice. It's been a long strange trip for Lagunitas! They've done lots of things right for a long time.
     
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  10. Harrison8

    Harrison8 Grand High Pooh-Bah (6,285) Dec 6, 2015 Missouri
    Pooh-Bah Trader

    I don't know that a poll would provide an honest response. It's easy for folks to say they'd bite the bullet in any number of ways, including turning down a huge sum of money in exchange for the business they grew. Particularly, if they still get to collect a monthly paycheck and still play a role in the business. People say all sorts of things, but don't often reflect those statements when the real pressure and decision time hits.

    I do agree and share their displeasure with folks disappointment in breweries selling out. I just think it's valuable to at least glimpse the situation from the other side. Whether or not it's the "right" decision for the craft beer market, average consumer, craft consumer, etc. is different then stating you'd stand-up and do different by not selling-out. Very few of us have the time, money, or emotion invested into a brand or stand to benefit from a decision like the one Lagunitas faced.
     
  11. BeerPugz

    BeerPugz Initiate (0) Dec 4, 2016 Wisconsin

    "I realized that that Lagunitas had been 22 years a start-up brewery and only recently has become a real business."

    What hop is he smoking?
     
  12. jparizo

    jparizo Initiate (0) Jan 16, 2011 Indiana

    Was at the Chicago tap room this past weekend and enjoyed High West-ified, Waldo's, and Davey Murray. As long as the beer is good and the price is right, I'll be drinking it.
    Congratulations and best of luck.
    Let me rephrase, I REALLY enjoyed High West-ified.
     
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  13. TriggerFingers

    TriggerFingers Initiate (0) Apr 29, 2012 California

    A merger like this is not something all breweries would do and there will be detractors at every level of the beer scene. Yet in the end, we must all choose our own path.

    If it means better distribution, lower consumer cost, and fresher beer on the shelves without compromising quality, then I'm all for it!

    Lagunitas has been crushing it lately with One-Hitter offerings. Hopefully, we can see more cannned beer from them.

    Time will tell. Let's see what they come up with next!

    Cheers!
     
    Thecalmdrinker, sefus12 and jparizo like this.
  14. Hoppedelic

    Hoppedelic Savant (1,065) Dec 6, 2010 California
    Trader

    At least the first thing he does after waking up in the morning is smoke pot, so he's still alright in my book. Congrats on the extremely successfull brewery!
     
    Gajo74 likes this.
  15. CNoj012

    CNoj012 Initiate (0) Dec 7, 2014 New York

    I'll be honest, I have more respect for breweries like Wicked Weed, Elysian, GI etc. who sell out without the spin. My family owns a small, independent grocery store. We cut/grind meat fresh every day IN STORE, we don't make you sign up for a shopping club card to get our sale prices, and we donate to and support our community who have supported us for over 98 years. And personally I'll admit to looking down on the big corporate stores that do the opposite, but if one of them came in with an offer that would provide financial security to my grandkids' grandkids you bet your ass I would take the money and run. I have no issue with anyone building a successful business and being recognized and rewarded for their hard work by being bought out. That's capitalism! But please spare me the bullshit. Just because you still smoke weed and use sriracha sauce doesn't make you any less of a sell out (maybe a hippie/hipster sell out, but a sell out nonetheless.) I'd like to sincerely congratulate you @DogTown, you built an excellent business that makes a great product and you have fully reaped the benefits, but don't piss on my leg and tell me it's raining.
     
  16. considerbeer

    considerbeer Devotee (303) Dec 15, 2016 California

    No amount of smoking weed makes sense of this letter. Just because Magee still wakes-and-bakes does not make this move revolutionary in any respect. What a terrible smokescreen - you can see right through all the hippie, pseudo-counter-culture, "buying-in" vs. selling out nonsense for the corporatized shilling that it is.

    The amount of cognitive dissonance and historical illiteracy it must take to equate merely "buying-in" with Dutch freaking colonialism... And then complain that it's difficult to get your workers visas to crowd out local jobs in your new markets! Yikes.
     
    #16 considerbeer, May 4, 2017
    Last edited by a moderator: May 4, 2017
  17. peej

    peej Initiate (0) Apr 18, 2013 New York

    I imagine the keyboard click clack sounds of this down to earth "type how people talk" post echoing softly off the dark wood walls of the gigantic office in his newly purchased mansion.

    I'm still one of ya'll, my dudes. Jeeves packs my bong 1 gram at a time just like everyone else.
     
  18. rgordon

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

    Just between you and me, I'd rather sidle up to Heineken any day of the week, rather than other big brewery amalgams. The Heineken Brewery in Amsterdam as a 19 year old on his own in Europe for 3 months was ungodly good. We were treated wonderfully, met kids our age from all over the world, traveled with a few of them later, and learned "great" corporate personality up close (1970). Carlsberg in Copenhagen was a close second. Things have certainly changed, but these impressions from these breweries largely fueled my interest in world wide beers, and a long career in the beverage industry.
     
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  19. jbakajust1

    jbakajust1 Pooh-Bah (2,552) Aug 25, 2009 Oregon
    Pooh-Bah

    I want quality, quantity/variety, affordability, local, fresh, cutting edge, etc, all at the same time, as do most of the people on this forum. The harsh reality is that isn't easy. I know too many brewers that can't take home a pay check, or are severely under paid. I personally hate to pay big prices for beer, and that means that the brewer/brewery won't pay well enough. If that is the case I can't fault the brewer/brewery for selling out. I struggle to make ends meet. They struggle to make ends meet. If I'm not willing to pay them the money to make fresh quality beer affordably with cutting edge variety, someone has to. When the consumer won't give them the money needed to give the consumer what the consumer demands from them to remain relevant to the consumer then the consumer no longer has a right to bitch when they find someone else to give them the funds to give the consumer what they want.
     
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  20. Jugs_McGhee

    Jugs_McGhee Grand High Pooh-Bah (6,140) Aug 15, 2010 Texas
    Pooh-Bah Trader

    I've long loved Lagunitas and as long as the beer's good and the company keeps doing what it's been doing, I'll keep buying.

    That said, I'd be surprised if Heineken doesn't try to move back towards bombers instead of the 12 oz 6 pack format. I gained a lot of respect for Lagunitas when they made Hop Stoopid even more affordable by moving to 6 packs, and I'd definitely stop buying if I saw that trend reversed.

    I could also see Heineken raising the price of beers like Lagunitas Sucks, and/or focusing more on limited/seasonal releases with an inflated pricetag instead of developing "ole reliable" year round offerings.

    I look forward to being wrong.
     
    Thecalmdrinker and meanmutt like this.
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