Three months after Anheuser-Busch InBev declined to make an offer to purchase the remaining stake of Portland-based Craft Brew Alliance (CBA), the world’s largest beer company will now buy out the rest of the business for US$220 million, reported The Wall Street Journal.
“Today’s 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,” Andy Thomas, CEO of Craft Brew Alliance, said in a press release. “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.”
The world’s biggest brewer has seen declining sales by volume for years in the US, its largest market, as Americans shirk mainstream lagers in favor of craft beers, spirits, and nonalcoholic drinks. In response, AB InBev has tried to sell pricier beers in developed markets and is pushing deeper into emerging markets by introducing new affordable brews.
Craft Brew, which was formed in 2008 by a merger of Redhook Brewery and Widmer Brothers Brewing, operates breweries and pubs across the US and several countries around the world. Most of Craft Brew’s brands are already distributed through Anheuser-Busch’s network of independent wholesalers, the companies stated.
Full Content: Wall Street Journal
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