USA: Anheuser-Busch to make Pabst beer after Molson Coors partnership ends

Pabst Brewing Company has announced a new brewing contract agreement with Anheuser-Busch InBev. The contract comes after a two-decade long contract agreement with Molson Coors came to an end in December 2024, Yahoo! Finance reported on January 9.

Beginning in the first quarter of 2025, Pabst will begin production using several AB InBev facilities.

Since the closing of Pabst’s Milwaukee brewery in 1996, the company has relied on third-party plants to brew legacy brands like Pabst Blue Ribbon, Old Style and Old Milwaukee. Now, AB InBev will give Pabst the space for greater supply, as well as the potential to grow its portfolio as the consumer market shifts.

Prior to the new AB InBev agreement, when the Molson Coors contract end date became public in 2019, Pabst announced a similar agreement with City Brewing. The companies made a deal running through 2040 to offset the Molson Coors production loss. City Brewing will still produce significant volumes for Pabst. With facilities in Wisconsin, Tennessee, California and Pennsylvania, the La Crosse, Wisconsin-based City Brewing is one of the nation's largest contract brewers.

As for Anheuser-Busch, the deal moves a former rival into its supply chain. The beer giant recently closed a Massachusetts distribution facility, but has invested nearly $2 billion in U.S. sites in the last five years.

AB InBev currently has 12 breweries across the country. Under the new contract, Lone Star will be the first Pabst brand to enter production, which is scheduled to begin at AB InBev’s Houston facility in early 2025.

09 January, 2025