KAILUA-KONA — Kona Brewing Co. is soon to become wholly owned by beer giant Anheuser-Busch.
Craft Brew Alliance, parent company of Kona Brewing Co., and Anheuser-Busch jointly announced the agreement Monday to expand their partnership, with Anheuser-Busch agreeing to purchase the remaining shares of Craft Brew Alliance, based in Portland, Ore., it does not already own.
“By combining our resources, our talented teammates and dynamic brands, we will look to nurture the growth of CBA’s existing portfolio as we continue investing in innovation to meet the changing needs of today’s beverage consumers, all while delivering certainty of value to our shareholders,” said Craft Brew Alliance CEO Andy Thomas in a media release.
Prior to Monday’s announcement, Anheuser-Busch owned 31.2% stake in Craft Brew Alliance and will buy the remaining shares at $16.50 per share. The transaction, which is subject to closing conditions including approval by a majority of Craft Brew Alliance shareholders, is expected to close next year.
The vast majority of Craft Brew Alliance’s brands, which also include Redhook Brewery and Widmer Brothers Brewing are already distributed through Anheuser-Busch’s network of independent wholesalers per the companies’ existing commercial agreement. Craft Brew Alliance acquired Kona Brewing Co. in 2010.
“We’ve had a really great relationship with Anheuser-Busch over the past 17 years being our local wholesaler,” said Bill Smith, Kona Brewing Co. general manager of Hawaii operations, on Monday. “Mainly, it doesn’t change much immediately for us. Our focus is still the new brewery and getting that built. But what it does is give us a better relationship with Anheuser-Busch and moving forward with our wholesalers.”
Smith said the agreement with Anheuser-Busch helped lay the ground work for the local brewery to grow substantially using the beer giant’s distribution network.
“It allowed us to use their seamless wholesaler network, but we were just part of their discussion, we were part of the repertoire of what they had when they went into an account to sell beer,” Smith said. “Now, with the future of us merging together, we will totally be part of the brand family and part of their focuses and initiatives for the year.”
And that could mean more markets to enter, including internationally. Currently, Kona Brewing beer is sold outside the United States in Scandinavia, Europe, Asia, Australia and now Brazil.
Meanwhile, construction is progressing at the site of Kona Brewing’s new brewery off Pawai Place in Kailua-Kona. Completion remains set for March.
If the transaction closes, Craft Brew Alliance will join Anheuser-Busch’s Brewers Collective, a collection of craft partners spread throughout the country committed to providing consumers with innovative, quality beers and investing in their local communities, according to the joint announcement.
“CBA’s diverse portfolio of regional breweries and innovative lifestyle brands is an excellent complement to our family of craft partners and would continue to help fuel the growth of the craft beer category,” said Marcelo Michaelis, president of the Brewers Collective.
Email Chelsea Jensen at cjensen@westhawaiitoday.com.