Anheuser-Busch and Pabst Blue Ribbon recently announced a partnership that will see the former producing the latter’s beer products, starting in the current financial quarter. This collaboration, as reported by Brewbound, aims to strengthen Pabst’s supply chain and better cater to the needs of retailers and distributors, according to Pabst CEO Paul Chibe.
Pabst Blue Ribbon, a company with a rich history dating back to 1844, has traditionally outsourced its beer production to third-party contractors since the closure of its original Milwaukee brewery in 1996. Following a nearly two-decade production deal with Molson Coors, Pabst is now teaming up with Anheuser-Busch to continue producing its iconic brew. This move is expected to provide the brand with increased supply certainty and growth potential across its entire product portfolio, as stated by Chibe. Additionally, some Pabst Blue Ribbon products will still be manufactured by City Brewing Company, with whom Pabst entered into a 20-year production agreement in 2019.
Despite its long history, Pabst Blue Ribbon has managed to stay relevant in the ever-evolving beer market. While its beer operations peaked in the 1970s, the brand’s namesake brew continues to be a top-selling beer in the United States. In addition to Pabst Blue Ribbon, the company’s portfolio includes other well-known brands such as Old Milwaukee, Stroh’s, Heileman’s Old Style, and Colt 45. Over the past decade, Pabst has also diversified its product line by exploring new offerings like cannabis seltzer, hard coffee, and bourbon.
For Anheuser-Busch, the partnership with Pabst Blue Ribbon represents an opportunity to integrate a former rival into its supply chain. The company has been making strategic moves to restructure its manufacturing operations, including the closure of a distribution facility in Massachusetts and investing $14 million to upgrade its Houston brewery.
Overall, the collaboration between Anheuser-Busch and Pabst Blue Ribbon marks a significant development in the beer industry. By leveraging each other’s strengths and resources, both companies aim to enhance their competitiveness and meet the changing demands of consumers. As the market continues to evolve, partnerships like this one will likely become more common as companies seek to adapt and thrive in an increasingly competitive landscape.
