Lagunitas Brewing Company, Inc., 2013

Introduction:

Lagunitas Brewing Company (LBC), Inc. is an organization that creates craft beer. Between 1992 and 2013, Lagunitas has steadily increased production to keep up with the increase in sales. In the beginning, Tony Magee, the founder, had a difficult time getting financing because banks did not believe in the craft beer movement. Once Magee had to move to a new larger facility, he decided to seek out private equity for financing help. In other words, Magee received money from some old and new friends. By 2013, Lagunitas had flourished, production increased from 600 barrels annually to 400,000 barrels annually.

Analysis:

Lagunitas believed that with profitability came responsibility to maintain high brewing standards and to support the communities that have supported them. Lagunitas viewed themselves as an American Brewery with American owners and employees. They wanted to be known more as an American beer instead of a craft or microbrew. Lagunitas wants to get their beer to as many people as possible.

Marketing for Lagunitas primarily focused on music and they are motivated to help the music and the arts. Four nights a week they have live music in their tasting room. They lacked traditional methods of media promotions and pricing incentives. Lagunitas marketing strategy was very simple, continue to be Lagunitas. Magee worked extremely hard to get personality into the recipes and he did not want that to change.

Internally, Lagunitas was doing a magnificent job. They had built a successful and identifiable brand without having to express themselves in a traditional manner. The brand was consistent with the founder, Magee’s, personality. They developed it predominantly with simple typefaces and catchy, quirky labels. Another