Lagunitas Brewing Co. makes investment in Michigan brewer

Lagunitas Brewing Co. of Petaluma announced Wednesday it has purchased a 20 percent stake in Short’s Brewing Co. of Elk Rapids, Michigan. It’s the latest move by the brewery to grow its national portfolio through narrowly targeted deals, as opposed to the kinds of splashy acquisitions made by rival Anheuser Busch InBev.

In a statement, Short’s said the partnership made sense given a slowdown in growth in the overall craft beer industry, which has triggered more mergers-and-acquisitions activity while still allowing the brewery to pursue its creative brewing style. Its brews range from a fruit rye ale packed with pureed strawberries, blueberries, raspberries and blackberries to a coffee cream stout.

The business was founded in 2002 by a then 22-year-old Joe Short. The next year, it moved into a vacant 120-year-old hardware store in Bellaire, Michigan, to brew its beer and opened its brewpub in 2004. The company also produces hard cider and recently began selling its beers outside of Michigan.

“This partnership with Lagunitas is just another part of evolution in the cycle of our dynamic and growing business,” Short said in a statement. “I’ve grown so much personally and professionally during my time at the helm of Short’s Brewing Company that I understand now, more than ever - the continued success of Short’s and its people rely on me to make smart and strategic decisions. This is just one of them.”

The Short’s investment is the first deal by Lagunitas since Heineken International acquired 100 percent of the company in May. Lagunitas founder Tony Magee became Heineken’s director of global craft under the deal and leads its Lagunitas U.S. Holdings, known by its acronym LUSH.

“I really admire Tony,” Short said. “His vision and level of understanding of the industry is fascinating to me. With his ability to share Lagunitas’ 24 years of experience, this partnership is going to bring some serious awesomeness to the people of Short’s.”

Last year, Lagunitas took a minority stake in Independence Brewing Co. in Austin, Texas, and a 50 percent stake in Moonlight Brewing Co. in Santa Rosa, founded by craft brewer pioneer Brian Hunt. In an interview last week, Hunt said he has not pressured by Lagunitas to increase production of his beer as a result of the investment and continues to brew his beers in the same way since founding the company in 1992. That’s not the case with the 10 craft breweries purchased by Anheuser-Busch, as the world’s largest brewer has ramped up the capacity of its craft portfolio and even brewed some craft beer in its Anheuser-Busch’s plants, including one in Fairfield.

You can reach Staff Writer Bill Swindell at 707-521-5223 or bill.swindell@pressdemocrat.com. On Twitter @BillSwindell.