AB InBev acquires remaining stake in Craft Brew Alliance

Beer giant AB InBev has performed a u-turn after turning down a deal to acquire the rest of Craft Brew Alliance in August, announcing the purchase of the whole company in an estimated US$321 million deal.

The global brewer announced yesterday (11 November) that it was to acquire the remaining stake in Craft Brew Alliance (CBA) for $16.50 per share, over double the $7.33 per share price at the close of trading last night.

AB InBev currently owns a 31.2% stake in CBA, which it acquired in January 2013.

In August, it rejected a deal to buy CBA outright. The initial deal stated that by 23 August, AB InBev either had to buy CBA for US$24.50 per share, equating to around $500m, or make a $20m payment. It opted for the latter.

Commenting on the revised purchase, Andy Thomas, CEO of CBA, said: “Anheuser-Busch has a long track record of working with its craft partners to help make the US beer category stronger and more vibrant.

“The announcement represents an exciting next step in a long and successful partnership with Anheuser-Busch, whose support for the growth of our business and brands traces back over 25 years.

“By combining our resources, our talented teammates, and dynamic brands, we will look to nurture the growth of CBA’s existing portfolio as we continue investing in innovation to meet the changing needs of today’s beverage consumers, all while delivering certainty of value to our shareholders.”

Upon completion of the deal, which pending closing conditions and regulatory approval is expected to close in 2020, CBA will become part of AB InBev’s Brewers Collective, formed of acquired craft beer brands. These include Goose Island, Elysian and 10 Barrel.

In the last three years, AB InBev has invested over $130m in the business unit, allowing members to expand production by an average of 31%.

Michel Doukeris, CEO of AB InBev, said: “Our partnership with CBA goes back many years and we look forward to supporting CBA as they continue to bring great products to beer drinkers across the US.”

Based in Portland, Oregon and founded in 2008, the CBA is a collection of craft brewing brands including Kona Brewing, Appalachian Mountain Brewery, Cisco Brewers, Omission Brewing Co., Redhook Brewery, Square Mile Cider Co., Widmer Brothers Brewing, and Wynwood Brewing Co. Beers produced by the group are available in all US states and in 30 countries around the world.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

We encourage debate in the comments section and always welcome feedback, but if you spot something you don't think is right, we ask that you leave an accurate email address so we can get back to you if we need to.

Subscribe to our newsletters

Champagne Masters 2019

View Results

Rioja Masters 2019

View Results

Click to view more

Subscribe today to get each issue of The Drinks Business as soon as it's published, plus all the latest breaking news and access to our library of back issues.

Subscribe Today!

Subscribe to our daily newsletter

Stay up-to-date with the latest news about the international spirits industry every weekday lunchtime (GMT)