By Angela Chen
Anheuser-Busch InBev NV agreed to buy Seattle-based craft-beer
company Elysian Brewing Co., the latest acquisition for the
beverage giant as it tries to capitalize on the growing popularity
of smaller beer labels.
Financial terms weren't disclosed.
Elysian's portfolio includes Immortal IPA and other brands.
"Elysian's brands are an important addition to our high-end beer
portfolio," said Anheuser-Busch Chief Executive Andy Goeler, who
added that Elysian is the fastest-growing brewery in Washington
state.
Belgium-based Anheuser-Busch, the parent company of brands such
as Budweiser and Stella Artois, has seen revenue decline as younger
drinkers favor craft beers and flavored malts. Four of the five
largest U.S. beer brands, including AB InBev's Budweiser and Bud
Light, posted volume declines last year. There are more than 3,000
small "craft" brewers in the U.S., twice as many as half a decade
ago, and their combined shipments have grown by a double-digit
percentage five straight years, according to the Brewers
Association, which represents small brewers.
As consumers experiment with bolder flavors, Budweiser has gone
from being one of four beers available on draft in a typical bar to
one of 10 or more. In 2013, Americans drank more craft beer than
Budweiser.
Growth in the U.S. isn't in mass-produced brands, but small
labels like Chicago-based Goose Island, which makes labor-intensive
beer like the orange-infused Sofie ale. AB InBev acquired Goose
Island in 2011.
Last year, it bought both Oregon-based 10 Barrel Brewing Co. and
New York-based Blue Point Brewing Co. AB InBev also makes Shock
Top, a wheat beer it developed to compete with craft brewers.
Similarly, rival MillerCoors LLC, the U.S.'s No. 2 brewer, makes
Blue Moon, a specialty wheat beer it introduced in 1995, and
recently launched small labels like Batch 19 and Third Shift.
The acquisition includes the Seattle Airport Way brewery and
four Seattle brewpubs.
The deal is expected to close in the first quarter.
Write to Angela Chen at angela.chen@dowjones.com
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