Dive Brief:
- Anheuser-Busch InBev has announced it will transfer ownership of its two Kentucky distributorships to a Texas-based company in exchange for three operations in Colorado.
- AB InBev's current Kentucky distributor license ends October 31. Because of a House bill passed earlier this year, the company would not have been able to have its license renewed by state regulators at that time.
- "House Bill 168, which was sought by the Kentucky Department of Alcoholic Beverage Control, is meant to close a loophole in a three-tiered system that aims to avoid monopolies by separating beer producers, distributors and retailers. The law’s passing means Anheuser-Busch must render its distributorships before its license expires," The Courier-Journal reported.
Dive Insight:
The bill in question was brought up in response to a 2014 court case concerning distributorships in the state. The battle that ensued "was one of the most contentious issues of the legislative session, pitting craft brewers and independent distributors against Anheuser-Busch, with both sides claiming a win for the other would reduce jobs," according to The Courier-Journal. In the end, AB InBev has pulled out of the state, to the delight of some craft brewers but to the dismay of some AB InBev employees.