08-09-2015 | 17:45
Amsterdam, 8 September 2015 - Heineken N.V. ('HEINEKEN') (EURONEXT: HEIA; OTCQX: HEINY) today has announced the acquisition of a 50% shareholding in the Lagunitas Brewing Company, the fifth largest craft brewer in the United States by volume. Lagunitas owns a stable of award-winning brands, including Lagunitas IPA. Lagunitas IPA is the largest India Pale Ale brand in the United States and has become a benchmark for the category. The transaction will provide HEINEKEN with the opportunity to build a strong foothold in the dynamic craft brewing category on a global scale, whilst it provides Lagunitas with a global opportunity to present its beers to new consumers in a category that is showing exciting international growth opportunities.
Founded in California in 1993, Lagunitas is estimated to sell c. 1 million hectolitres of beer in 2015 from its two world-class breweries in Petaluma, California, and Chicago, Illinois. A third brewery is currently under construction in Azusa, California. The brewer has a strong track record of growth, with 2012 - 2014 revenue CAGR at 58%. Its other leading brands include A Little Sumpin' Sumpin', Daytime, Pils, Sucks, Hop Stoopid and Maximus. Lagunitas has a nationwide presence in the United States and the brewer has expanded into a number of other markets including the UK, Canada, Sweden and Japan, offering strong potential for continued growth outside the United States.
In the United States, craft beer continues to outperform the overall beer market, and now represents 11% of total volumes. Within the craft segment, IPA is the fastest growing category.
Lagunitas will continue to be led by Tony Magee, its founder and Executive Chairman, alongside the existing management team and the company will continue to operate as an independent entity.
The transaction is subject to customary closing conditions and is expected to complete in the 4th quarter of 2015. Financial terms are not disclosed.
Commenting, Jean-François van Boxmeer, Chairman of the Executive Board & CEO of HEINEKEN said: "We are very excited to partner with Lagunitas. We recognise and respect the tremendous success of Tony and his team in building one of the great U.S. craft beer brands. We look forward to that same team partnering with us to expand Lagunitas globally, so it can reach parts of the world that other craft beer brands have not."
Tony Magee, founder and Executive Chairman of Lagunitas, added: "This venture will create a way for Lagunitas to let HEINEKEN participate in the growing craft beer category across its global distribution network in places from Tierra Del Fuego and Mongolia to the far-flung Isle of Langerhans. Lagunitas will share in the best quality processes in the world and enjoy access to opportunities that took lifetimes to build. This alliance with the world's most international brewer represents a profound victory for U.S. craft. It will open doors that had previously been shut and bring the U.S. craft beer vibe to communities all over the world."
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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 approximately 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.
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