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Diving overview:
- Anheuser-Busch has signed a deal to produce Pabst Blue Ribbon beer products starting this fiscal quarter, according to a report. brewer.
- Pabst CEO Paul Chibe said in a statement to Food Dive that the deal will allow the company to “strengthen its supply chain” and better meet the needs of retailers and distributors.
- The deal comes as long-time major brands try to maintain momentum while consumers change their drinking habits.
Dive Insights:
Pabst has survived in the beer market for almost two centuries. Founded in 1844, the company has been outsourcing beer production to third-party contractors since closing its original Milwaukee brewery in 1996. After nearly 20 years of production contracts with Molson Coors, the company is partnering with another major brewer to produce its beers.
According to Pabst’s CEO, the deal with a major player in the beer category will allow the brand to expand its reach with “much greater supply certainty and growth potential across the entire product portfolio.” Some Pabst Blue Ribbon products will continue to be manufactured by City Brewing Company, which signed a 20-year production agreement in 2019, Chibe said.
Pabst’s beer business peaked in the 1970s, but its namesake beer still ranks among the top 20 best-selling beers in the United States. Pabst’s portfolio includes brands such as Old Milwaukee, Stroh’s, Heileman’s Old Style and Colt 45. Over the past 10 years, Pabst has aimed to: Evolve your product line beyond beer by testing or launching products like cannabis seltzer, hard coffee, and bourbon.
For Anheuser-Busch, the move brings a one-time competitor into its supply chain. The Budweiser maker has taken strategic steps to change its manufacturing structure over the past year, including closing its Massachusetts distribution facility and spending $14 million to upgrade its Houston brewery last fall.
