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The August 23 deadline has come and gone and Anheuser-Busch InBev has declined to buy the remaining 68.7% stake of the Craft Brew Alliance.
Anheuser-Busch InBev already owns 32.2% of the Craft Beer Alliance (CBA). It’s also the CBA’s distribution partner, holds two seats on its board of directors, and has a special status in the company’s board committees.
Coming off a relatively strong earnings report, many analysts felt that the Portland, OR-headquartered CBA was poised to become a 100% AB InBev property. But it was ultimately left at the altar by the world’s largest brewer, a company already saddled by considerable debt.
Passing on the deadline to make a qualifying offer to acquire the remaining stake of Craft Brew Alliance AB InBev opted instead to make a one-time approximately $20 million fee to CBA, home to Kona Brewing, Widmer Brothers, Redhook, Omission, Square Mile Cider, Wynwood Brewing, Cisco Brewers and Appalachian Mountain Brewery, which basically keeps the existing arrangement intact through 2026.
In a press release CBA Chief Executive Officer Andy Thomas expressed some regret while keeping things as positive as he could…
“While disappointing, with this decision made, management can turn its attention to refining strategic alternatives to maximize shareholder value.”
Over the past several years, we have built a sustainable infrastructure, optimized our footprint, and amassed a diversified portfolio of brands to support future profitable growth anchored by robust growth in the Kona brand and the addition of our three newly acquired brands.”
“Looking to the future, we are optimistic that our healthy balance sheet, bolstered by the $20 million payment, and strategic investments in innovation and increased brand awareness will enable us to deliver long-term shareholder value. We look forward to sharing more details of our growth plan in the coming weeks.”
On its decision not to make the offer, AB InBev Brewers Collective president Marcelo “Mika” Michaelis remained diplomatic…
“The long-standing and strong partnership we have with Craft Brew Alliance (CBA) is extremely valuable to Anheuser-Busch. While we are not making an offer to purchase the remaining shares of CBA, our existing commercial partnership with CBA continues to be a key complement to our industry-leading craft portfolio and we look forward to working together for many years to come.”
