USA: AB InBev and Craft Brew Alliance finalize merger

Anheuser-Busch InBev and Portland, Oregon-based Craft Brew Alliance on September 30 announced that AB InBev's buyout of the Portland, Oregon-based craft brewer has been finalized, the St. Louis Business Journal reported.

In November, Anheuser-Busch agreed to acquire the remaining shares in Craft Brew Alliance (CBA) that it didn't already own, which was 31.2% at the time, and agreed to pay $16.50 per share in cash for the remaining shares. Reuters valued the deal at $321 million.

Earlier this month, the companies entered into an agreement with the U.S. Department of Justice they called “an important next step" toward closing their expanded partnership. The deal came after CBA shareholders' February approval of the partnership and CBA and AB InBev’s decision to sell CBA’s Kona Brewing operations in Hawaii to PV Brewing Partners, which counts as an investor Dave Peacock, former AB InBev president and current Schnuck Markets president and COO.

Effective September 30, CBA's portfolio of brands and breweries will join Anheuser-Busch's Brewers Collective group of craft brewing partners, officials said. "Kona Brewing Co.'s mainland and international operations and regional brands Appalachian Mountain Brewery, Cisco Brewers, Omission Brewing Co., Redhook Brewery, Square Mile Cider Co., Widmer Brothers Brewing, and Wynwood Brewing Co. will further strengthen the Brewers Collective portfolio," AB InBev officials said.

Most of CBA's brands already have been distributed through AB InBev's independent wholesaler network through an existing commercial agreement, including distribution and brewing agreements, until 2028.

"Connecting with consumers through our brands is at the forefront of everything we do," Michel Doukeris, CEO of Anheuser-Busch, said in a statement. "After a successful partnership that spans more than 25 years, we are excited to now fully welcome CBA into the A-B family and continue to work together to bring more consumers, in more communities, even more choices for every occasion."

Several top leaders from Craft Brew Alliance will join AB InBev in new roles. Andy Thomas, formerly CEO of Craft Brew Alliance, will serve as general manager of Kona Brewing Co.'s mainland operations and regional Brewers Collective brands based in the eastern U.S. Christine Perich, formerly CBA's chief financial and strategy officer, will serve as general manager of regional breweries on the West Coast. Both will report directly to Marcelo "Mika" Michaelis, president, A-B's Brewers Collective.

"CBA's dynamic breweries have the same commitment to authenticity and entrepreneurial spirit that has enabled our craft partners to grow as members of Brewers Collective," Michaelis said in a statement. "By prioritizing home markets, building an unmatched innovation pipeline, and developing effective marketing, we have been able to achieve success locally and nationally, and we're excited to take this next step with CBA."

Anheuser-Busch is part of Belgium-based Anheuser-Busch InBev, which has its North American base in St. Louis.

01 October, 2020