Dive Brief:
- A-B InBev is buying Blue Point Brewing Co.,a craft brewer based on New York's Long Island. Terms of the deal were not disclosed.
- Blue Point brews about 60,000 barrels a year — mostly of its signature brand, Toasted Lager.
- A-B has some experience in scaling up craft brewers. After the company bought Goose Island, sales soared — from 152,000 barrels in 2011 to 208,000 barrels a year later.
Dive Insight:
A-B's problems with its flagship brands here in the U.S. are well-known. It may seem like Bud and Bud Light are everywhere, but the brands are rapidly losing popularity among younger drinkers. A-B is responding by investing heavily overseas while looking to buy craft brewers or launch new beverages aimed at Gen Y here in the States.
It's not a bad strategy. We certainly don't have a better one to share. Still, we share Wall Street's anxiety about what all these acquisitions are doing to A-B InBev's finances.