Dive Brief:
- AB InBev is buying back a minority stake in its U.S. metal container plants for about $3 billion, the company said Tuesday.
- The Bud Light maker is reacquiring the 49.9% stake from a group of institutional investors led by Apollo Global Management at roughly the same price the company sold it for in 2020. The deal is expected to close in the first quarter.
- The metal container plant operations include seven facilities across six states. AB InBev said the facilities are “a strategic component of our business, ensuring quality, cost efficiency, speed of innovation and supply security” for its brands.
Dive Insight:
When AB InBev offloaded minority ownership of its metal container plants, the beer giant said it would have the right to reacquire the stake on the five-year anniversary of the transaction.
At the time of the initial deal, AB InBev planned to use the proceeds from the sale to reduce debt and build out its portfolio, including its beyond beer business.
Now in 2026, it plans to buy the rest of the container business back as the Michelob Ultra maker invests hundreds of millions of dollars in U.S. manufacturing operations and works to scale newer brands, such as its recently launched Phorm Energy
Taking over the full operations of its metal can business could be beneficial as metal tariffs raise costs and create headwinds for beverage companies. And as AB InBev expands into more can-focused beverages in addition to beer like energy drinks, full ownership could better help it secure supply.
An AB InBev spokesperson declined to comment beyond the press release.
Last year, AB InBev announced a $300 million commitment to boost domestic manufacturing. It recently spent $7.4 million to upgrade packaging and brewing equipment in Los Angeles, and the company announced similar projects in St. Louis and Baldwinsville, New York.
However, the plan has also included shutting down breweries to consolidate operations, including facilities in California and New Hampshire.
