UK: AB InBev buys Camden Town Brewery in London

Anheuser-Busch InBev has agreed to buy Camden Town Brewery for an undisclosed price, the companies said on December 21, even as the world's biggest brewer seeks to sell rival London craft brewer Meantime Brewing.

The acquisition is expected to close by 7 January.

AB InBev, which is trying to buy its largest rival SABMiller, is in the process of selling three SAB brands to avoid regulatory scrutiny. The brands being sold are Peroni, Grolsch and Meantime.

With the Camden Town deal, AB InBev gets a European craft brewer that started full production in 2010. It has grown to a team of 95 and sold 12 million pints this year, with the beers sold in over 1,000 pubs and bars.

Camden Town’s owners essentially conceded that the deal made sense for the same reason many small craft brewers have decided to sell: an opportunity to increase distribution.

“We can’t do this on our own,” wrote founder Jasper Cuppaidge in a blog post. “That’s why I’m proud to say I’ve signed a deal with AB InBev.” The deal comes several months after Camden Town launched and completed a funding round via crowdfunding to help build a second brewery in London.

AB InBev has been busy buying smaller brewers like Camden Town, though the deal analysts and investors are most keenly watching is the potential acquisition of SABMiller. Assets like Camden Town can help augment AB InBev’s portfolio and give it greater access to the craft category. But with AB InBev reporting quarterly volume of 121.7 million hectolitres – deals for names like Camden Town won’t move the sales needle much.

23 December, 2015