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Anheuser-Busch and Craft Brew Alliance extend master distribution agreement

DBR Staff Writer Published 24 August 2016

Anheuser-Busch (AB) and Craft Brew Alliance (CBA) have extended the existing fee structure of their current master distributor agreement for 10 additional years, through 2028.

The companies have also signed a new contract brewing arrangement, and a new international distribution agreement.

The deals are likely to yield significant financial benefits for the Portland, Oregon based CBA.

Under the new contract brewing arrangement, the companies will work together to transition up to 300,000 barrels of volume into AB’s breweries.

The deal will directly support CBA’s ongoing brewery footprint optimization and allow both companies to have further operational efficiencies.

Under the international distribution deal, AB will support the expansion of CBA’s portfolio of brands globally.

The deal follows CBA’s recent distribution arrangements with AB, which launched Kona in Brazil and Mexico. It creates opportunities to speed up the growth of CBA’s craft portfolio in new international markets.

Craft Brew Alliance CEO Andy Thomas said: “As both of our companies evolved over the past 18 months, it became clear that our strategic focus and commitment to the growth of craft beer were increasingly more aligned, and we started to explore ways to collaborate more closely.”

Anheuser-Busch president Felipe Szpigel noted that today’s announcement will help bring CBA's portfolio of craft brands to more beer lovers in the US and across the world.

Szpigel also said: "We will support the growth of CBA’s brands and create new opportunities for both companies through our unparalleled network of U.S. wholesaler partners, dedication to quality through our industry-leading breweries and international reach."

Image: Anheuser-Busch's Williamsburg brewery. Photo Courtesy of Anheuser-Busch Companies, LLC.