Dive Brief:
- Anheuser-Busch has signed a deal to produce Pabst Blue Ribbon beer products starting in this financial quarter, according to a report from Brewbound.
- Pabst CEO Paul Chibe said in a statement to Food Dive the agreement will allow the company to “strengthen its supply chain” and better meet the needs of retailers and distributors.
- The deal comes as longtime staple brands try to maintain their momentum while consumers shift their drinking habits.
Dive Insight:
Pabst has survived nearly two centuries in the beer market. The company, which debuted in 1844, has outsourced its beer production to third-party contractors since the 1996 closure of its original Milwaukee brewery. After nearly two decades of a production deal with Molson Coors, it’s teaming up with another major brewer to produce its beer.
According to Pabst’s CEO, the deal with a major player in the beer category will allow the brand to expand its reach with “even greater supply certainty and growth potential across our full portfolio of products.” Some Pabst Blue Ribbon products will continue to be manufactured by City Brewing Company, which it entered into a 20 year production agreement with in 2019, Chibe said.
Pabst’s beer operations peaked in the 1970s, but its namesake brew remains in the top 20 best selling beers in the U.S. Its portfolio includes brands such as Old Milwaukee, Stroh’s, Heileman’s Old Style and Colt 45. Over the past decade, Pabst has aimed to evolve its product line beyond beer by testing or launching products like cannabis seltzer, hard coffee and bourbon.
For Anheuser-Busch, the move brings a onetime rival into its supply chain. The Budweiser maker has made strategic moves to changes its manufacturing structure over the past year, including shuttering a Massachusetts distribution facility and spending $14 million to upgrade its Houston brewery last fall.
