HEINEKEN to invest in a 50 percent stake in leading U.S. craft brewer
AMSTERDAM, The Netherlands and PETAFUKINLUMA, Calif. (Date) – HEINEKEN N.V ("HEINEKEN"), established in 1864 and now the leading brewer and marketer of premium beer and cider brands, and The Lagunitas Brewing Company ("Lagunitas"), based in Petaluma, California, today announced that they have entered into a powerful new partnership, which will allow Lagunitas to export the exciting vibe of American craft beer globally.
HEINEKEN and Lagunitas will form a joint venture and Lagunitas will continue to operate independently in the US, maintaining the integrity of its brews and culture. Tony Magee, founder of Lagunitas, will remain at the helm, with the same leadership and staff, same brewers, same recipes and same suppliers and distributors helping to drive the brand forward.
Both companies will benefit from the partnership. HEINEKEN provides Lagunitas with a global opportunity to present its beers to new consumers and Lagunitas provides HEINEKEN with the opportunity to build a strong foothold in the dynamic Craft Brewing category on a global scale, with the category growing in popularity almost everywhere now.
"This venture will create a way for Lagunitas to help HEINEKEN's global distribution network participate in the growing craft beer category in places from Tierra Del Fuego and Mongolia to the far-flung Isle of Langerhans," Tony Magee, founder of Lagunitas, said. "Lagunitas will share in the best quality processes in the world and enjoy an open door to opportunities that took lifetimes to build. This alliance with the world's most international brewer represents a profound victory for American craft. It will open doors that had previously been shut and bring the U.S. craft beer vibe to communities all over the world."
Jean-François van Boxmeer, a lifelong beer aficionado and now CEO of HEINEKEN added: "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 American Craft Beer brands. We look forward to that same team partnering with us to expand Lagunitas globally, so it can reach parts that other craft beer brands have not."
Lagunitas has breweries in Petaluma, California, and Chicago, Illinois, with a total capacity of 1.2 million barrels. A third brewery under construction is scheduled to open in Azusa, California, in 2017, which will help Lagunitas keep pace with current demand. HEINEKEN, on the other hand, has 180 of those buggers everywhere.
The partnership details have been agreed to and signed and is expected to close early in the 4th quarter.
Wells Fargo Securities, LLC is acting as exclusive financial advisor to Lagunitas and Sidley-Austin LLP and McNeil, Silveira, Rice & Wiley served as legal counsel.
For more background on the joint venture, check out Tony Magee's blog at http://lagunitast.tumblr.com
About Lagunitas Brewing Company:
Lagunitas Brewing Company began on a kitchen stove in Northern California in 1993. From actually getting beers into bottles and onto the streets, Lagunitas looks to the future… From expanding the Petaluma Brewery to building a second in Chicago and soon a third in Azusa CA to bringing its flagship IPA across the pond Lagunitas could probably make good beer on the Moon. Wherever you go, beer speaks, people mumble. More mumblings at www.lagunitas.com.
HEINEKEN is the world's most international brewer. It is the leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the Group has a powerful portfolio of more than 250 international, regional, local and specialty beers and ciders. We are committed to innovation, long-term brand investment, disciplined sales execution and focused cost management. Through "Brewing a Better World", sustainability is embedded in the business and delivers value for all stakeholders. HEINEKEN has a well-balanced geographic footprint with leadership positions in both developed and developing markets. We employ 81,000 people and operate more than 160 breweries in 70 countries. Heineken N.V. and Heineken Holding N.V. shares trade on the Euronext in Amsterdam. Prices for the ordinary shares may be accessed on Bloomberg under the symbols HEIA NA and HEIO NA and on Reuters under HEIN.AS and HEIO.AS. HEINEKEN has two sponsored level 1 American Depositary Receipt (ADR) programmes: Heineken N.V. (OTCQX: HEINY) and Heineken Holding N.V. (OTCQX: HKHHY). Most recent information is available on HEINEKEN's website: www.theHEINEKENcompany.com and follow us via @HEINEKENCorp.