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News Short's Brewing Co. sells 19.99% stake to Lagunitas/Heineken

Discussion in 'Beer News & Releases' started by moshea, Jul 26, 2017.

  1. moshea

    moshea Devotee (427) Jul 16, 2007 Michigan
    Beer Trader


    Is this satire? Is the Laguniatas Holding group really called LUSH?
  2. cg123

    cg123 Initiate (138) Feb 27, 2012 Ohio

    If true, and since Heineken owns 100% of Lagunitas, doesn't this mean that Heineken bought 19.99% of Short's??
    Badfish, JLaw55, jakecattleco and 5 others like this.
  3. moshea

    moshea Devotee (427) Jul 16, 2007 Michigan
    Beer Trader

    Yes, but it is most likely better optics to say Lagunitas bought you as not every consumer knows that Heineken owns Lagnitas
    JLaw55, beertunes, drtth and 5 others like this.
  4. JackHorzempa

    JackHorzempa Poo-Bah (3,065) Dec 15, 2005 Pennsylvania

    From the announcement:

    “The partnership stems from Short’s desire to successfully navigate the ever-evolving craft market while maintaining its creatively fearless identity. Lagunitas’ 19.99% equity stake in Short’s will be managed by Lagunitas U.S. Holdings — or LUSH.”

    But Lagunitas is 100% owned by Heineken so isn’t the equity stake in Short’s really by Heineken?

    I wonder what Andy Crouch thinks about the “transparency” of this announcement?

    Badfish, Brolo75, stevesbeer and 4 others like this.
  5. moshea

    moshea Devotee (427) Jul 16, 2007 Michigan
    Beer Trader


    Michigan Only, Michigan Forever......... well or at least until a better business opportunity presents itself..
  6. Selby56

    Selby56 Initiate (149) Nov 12, 2014 Tennessee
    Beer Trader

    Short's is my favorite brewery, couldn't get enough of their stuff when I lived in Michigan. Hell, when I go visit family in Ohio I drive two hours out of my way to go to Michigan and stock up on as much Short's as possible.

    I was living in Michigan when they decided to start expanding to other markets, but that wasn't a huge deal to me. Not sure how I feel about this news though.
    GreenBayBA likes this.
  7. Blackop555

    Blackop555 Meyvn (1,201) Dec 12, 2016 Michigan
    Supporter Subscriber Beer Trader

    There's a video they made. They state they want to be truthful or something like that but they said lagunitas bought 19.999%. no mention of Heineken and then they ramble on about themselves.
    SammyJaxxxx, Badfish, Brolo75 and 3 others like this.
  8. donspublic

    donspublic Meyvn (1,237) Aug 4, 2014 Texas
    Beer Trader

    I don't really see this as any difference than when Oskar Blues sold a majority stake to Fireman Capital Partners. When Oskar Blues/Fireman Capital bought out Cigar City, it was billed as Oskar Blues buys Cigar City, Fireman Capital was never mentioned.
  9. FBarber

    FBarber Poo-Bah (1,986) Mar 5, 2016 Illinois
    Supporter Subscriber Beer Trader

    @ScottatShorts has been addressing this to some extent over in the Shorts thread from the GL forum.

    Beginner2 and Blackop555 like this.
  10. Sabtos

    Sabtos Poo-Bah (3,598) Dec 15, 2015 Ohio
    Beer Trader

    Fireman Capital is not big beer. And I did hear a lot about Fireman Capital. Actually the first news I heard was their name as I was driving away from 2016 Huna weekend, and I had to look up who the hell it was. Then people started saying Oskar Blues bought CCB.

    In any case, I don't see Lagunitas making this purchase before being owned by Heiny. Why would they want anything to do with each other?
  11. AZBeerDude72

    AZBeerDude72 Meyvn (1,060) Jun 10, 2016 Arizona
    Supporter Subscriber Beer Trader

    It seems like we see these stories over and over and it plays out the same way. Anymore I just don't focus on it, buy who you like and what tastes good etc
  12. Oktoberfiesta

    Oktoberfiesta Aspirant (291) Nov 16, 2013 New Mexico
    Beer Trader

    For many, it's not about big beer changing recipes or having influence, it's about where we see our money being funneled back into. That perceived support system is a real thing. I know many local breweries who have switched owners or had partners buy out other partners etc. with no true announcements. Did they feel they had to have a press release? There are likely hundreds of breweries we'd be very surprised to see who actually owned a stake in. With that said the lines have been blurred for awhile. I guess we're past the point of a 200 reply thread and FB uprising.
    TheCrimsonKing and bluejacket74 like this.
  13. PrestigeWorldwide

    PrestigeWorldwide Devotee (438) Sep 22, 2015 Michigan
    Beer Trader

    This is one of the first things that came to my mind!

    And also that they sold less than 25%, so therefore can continue to operate as a craft brewer and "independent craft" under the Brewer's Association definitions.
    Badfish and SammyJaxxxx like this.

    DISKORD Initiate (68) Feb 28, 2017 South Carolina

    I guess we'll start seeing Short's around here sometime soon.
    GreenBayBA and landrewg like this.
  15. FBarber

    FBarber Poo-Bah (1,986) Mar 5, 2016 Illinois
    Supporter Subscriber Beer Trader

    Unless something drastically changes, it sounds like they will not be expanding distribution at all.
    VABA and Blackop555 like this.
  16. eldoctorador

    eldoctorador Zealot (513) Dec 12, 2014 California

    Is Heineken evil as well?
  17. JackHorzempa

    JackHorzempa Poo-Bah (3,065) Dec 15, 2005 Pennsylvania

    I sorta posed this question in a different thread where I asked about the Marketing & Sales practices of Heineken in their home country of The Netherlands but nobody responded. Based upon this I am guessing that nobody on BA knows?

  18. jageraholic

    jageraholic Disciple (394) Sep 16, 2009 Massachusetts
    Beer Trader

    Only real difference is OB sold a majority stake and Lagunitas sold 100%.
  19. Sabtos

    Sabtos Poo-Bah (3,598) Dec 15, 2015 Ohio
    Beer Trader

    Well...intentionally making skunked beer might qualify :neutral_face:
  20. HouseofWortship

    HouseofWortship Disciple (316) May 3, 2016 Illinois
    Beer Trader

    They use green bottles. That should tell you all you need to know how much they care about craft beer. :wink:
  21. SammyJaxxxx

    SammyJaxxxx Poo-Bah (1,788) Feb 23, 2012 New Jersey
    Beer Trader

    For now.
    They didn't buy Laguanitas all at once.
  22. kell50

    kell50 Meyvn (1,061) Jul 25, 2007 North Carolina

    LUSH.. haha. Clever.
  23. cavedave

    cavedave Poo-Bah (2,255) Mar 12, 2009 New York
    Beer Trader

    Stopped drinking/trading for them when Joe gave a big fuck you to people who got shafted by a string of infected garbage he sold as beer some years back. Will continue never to drink a Short's beer if they somehow end up on local shelves.
  24. Roadkizzle

    Roadkizzle Aspirant (204) Nov 6, 2007 Texas
    Beer Trader

    I really don't know what the marketing and sales practices they have... All I know is Heineken was the ONLY beer other than Palm I could find in every pub I had time to go in for my weekend in Leiden and Utrecht... Except for an "irish pub" that I found and promptly avoided the 10 euro bottle of Corona.

    Either there just is nobody else that seemed to want to make beer to sell in those areas, or the people really just only liked Heineken, or there may have been some business practices at play that got rid of competition.

    This was in the summer of 2008. I was only in the Netherlands for a weekend, but I was trying to find good Dutch beer and food.
    In my experience most places in Germany don't really have much variety. Bars normally didn't have a large variety of beers available but it wasn't anything like the everpresent Heineken.
    JackHorzempa likes this.
  25. jesskidden

    jesskidden Meyvn (1,289) Aug 10, 2005 New Jersey

  26. Billydoughnuts

    Billydoughnuts Aspirant (296) Feb 22, 2015 Michigan
    Beer Trader

    What was the infected beer?
  27. HouseofWortship

    HouseofWortship Disciple (316) May 3, 2016 Illinois
    Beer Trader

    I feel for the Lagunitas employees who pushed for the wear Short's to work day.
    joaopmgoncalves and cavedave like this.
  28. MistaRyte

    MistaRyte Disciple (385) Jan 14, 2008 Virginia

    If it gets Shorts beers to VA, I'm for it.
    tlema1 likes this.
  29. cavedave

    cavedave Poo-Bah (2,255) Mar 12, 2009 New York
    Beer Trader

    There were a bunch. The ones I got were Cup a Joe and another one I can't remember the name of, some fruit beer. Infected Cup a Joe was one of the worst tastes I've ever had in my mouth. Got stuck with a six of both. Joe told us they were fine and it was our fault for bad storage. Vowed I would never buy nor drink a Short's beer again.
    Brolo75, guinness77, denver10 and 6 others like this.
  30. HouseofWortship

    HouseofWortship Disciple (316) May 3, 2016 Illinois
    Beer Trader

    Now you can safely drink 1/5 of a Short's beer without feeling guilty.
    Greenstone and cavedave like this.
  31. cavedave

    cavedave Poo-Bah (2,255) Mar 12, 2009 New York
    Beer Trader

    I will definitely do that as soon as I try all other American beers first :wink:
  32. JackHorzempa

    JackHorzempa Poo-Bah (3,065) Dec 15, 2005 Pennsylvania

    A number of interesting tidbits in the article that @jesskidden linked.

    Firstly, kudos to the title which lists Heineken: “Short’s Brewing to sell 20-percent stake to Heineken subsidiary Lagunitas”.

    The article discusses the rate of deals/consolidation in the craft beer industry for 2017 (see below). There is still 5+ more months left in 2017.

    “For Joe Infante, the head of the alcoholic beverage regulation team at Grand Rapids-based Miller, Canfield, Paddock and Stone PLC, the Short’s deal represents one of many more deals to come in 2017.

    “2017 is the year of the deal,” Infante said of the craft beverage industry. “I said it in January that this is going to be the biggest year in deals we’ve seen in the craft beer industry.”

    The Short’s folks did not accept the highest money offer deal:

    “Newman-Bale declined to disclose further specifics of the deal, including the purchase price. He did reveal that the Lagunitas offer fell on the lower end of offers Short’s received from other companies, including large breweries and other investment firms.”

    It will be interesting to see when going forward whether Heineken will take a hands off approach to Short’s Brewing.

    Lone_Freighter and Bitterbill like this.
  33. reefer_bob

    reefer_bob Disciple (336) May 13, 2014 California
    Beer Trader

    I don't understand. They want help 'navigating the craft beer marketing land', but aren't expanding to sell anything outside of their current footprint.
    JLaw55, jakecattleco, Brolo75 and 5 others like this.
  34. HouseofWortship

    HouseofWortship Disciple (316) May 3, 2016 Illinois
    Beer Trader

    At one point they said they wouldn't distro outside of MI. Then they distributed outside of Michigan.

    I would take less to avoid having to do one of those High End videos.
  35. Tripel_Threat

    Tripel_Threat Poo-Bah (1,678) Jun 29, 2014 Michigan

    More competitive pricing for ingredients, probably.
  36. rgordon

    rgordon Crusader (733) Apr 26, 2012 North Carolina

    I read all of this and don't give a shit. I really understand allegiance to a favorite local brand, and I know how the rage over selling-out seems to subsume all conversation. But, look at all of the great beer- including Short's- that really just lurks out there more readily available than ever before, going on decades. This should surprise not a soul. I remain confident that the independent nature of our populace will make great beer on a greater increasing scale, regardless of big corporate influence. It just is the right time.
    nc41, cjgiant, cavedave and 3 others like this.
  37. Bitterbill

    Bitterbill Poo-Bah (5,238) Sep 14, 2002 Wyoming
    Supporter Beer Trader

    Why did they decide to package in cans as well then?
  38. Bitterbill

    Bitterbill Poo-Bah (5,238) Sep 14, 2002 Wyoming
    Supporter Beer Trader

    Yeah, year of the deal. NOTHING would surprise me at this stage of the game.
    JackHorzempa likes this.
  39. Bitterbill

    Bitterbill Poo-Bah (5,238) Sep 14, 2002 Wyoming
    Supporter Beer Trader

    Here's a prediction of mine. The first Wyoming brewery to sell, I don't want to say out, will be Black Tooth in Sheridan.
    SammyJaxxxx likes this.
  40. Sweatshirt

    Sweatshirt Aspirant (252) Jan 27, 2014 New Hampshire
    Beer Trader

    Good for them!
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