We all know that the craft beer world has seen tremendous change in the past decade. This is demonstrated perfectly by Lagunitas Brewing Company and their recent investments in niche craft breweries. The company has seen incredible growth in the past five years, and they have been quite successful in riding the craft beer label into the mainstream, collecting tons of revenue along the way. The label is looking to go local, and they have purchased a series to stakes in small breweries throughout the American Southwest and the West Coast. Additionally, they are investing in building two community centers, in Portland and San Diego. The community centers will be used to host events, and the proceeds will be donated to other non-profit organizations.
Independent Breweries on the Upswing
Lagunitas Brewing Company is investing in a hot part of the market, and the breweries receiving their investments have had tremendous growth in the past year. Independence Brewing Co. from Austin, TX has sold over 12,000bbls this year, which is an increase of 37% since last year. The Santa Rosa, CA craft brewery Moonlight Brewing Company is a smaller craft label, producing only 2,500bbls last year. However, the firm is very well-received in California and they have plans for expansion. Perhaps the Lagunitas funding will help them increase their production of high-quality beer. The third acquisition comes from Charleston, SC, and Lagunitas is now “under contract” with Southend Brewery. They plan to work together to host events and increase the presence of Lagunitas beer in the local scene.
Alternate Marketing Strategies
The other announcement coming from Lagunitas isn’t quite as straight-forward as their investments in small breweries. The company has partnered with local organizations in San Diego and Portland to open two community rooms. The spaces will be used to host events for other non-profits, but there will be a Lagunitas team onsite to help with event management. While this isn’t going to generate profit for the company, it is an excellent marketing strategy to target the craft brew audience. People that love craft beer are community-minded, and this approach allows the company to associate themselves with organizations doing positive work in the community. Lagunitas is hoping that this will help to boost their brand image, as there is a general disdain for “going corporate” in this marketplace.
Do you think Lagunitas be able to hang onto their niche status while continuing to expand? Let us know in the comments below!