Dive Brief:
- Anheuser-Busch InBev is suing New Jersey wholesaler Hunterdon, which is not readily handing over distribution for Elysian Brewing Company products in the state. Elysian is a craft brewery that the company moved to acquire in January.
- AB InBev offered Hunterdon over half a million dollars, or an estimated 5.5 times what Hunterdon made in gross profits on sales of Elysian in the year closing March 31, for transfer of the brand rights, but Hunterdon refused that offer.
- AB InBev filed a lawsuit over the issue with the U.S. District Court for the District of New Jersey earlier this month. AB InBev wants the courts to confirm the company's compliance with offering to pay Hunterdon the fair market value for the Elysian brands, as instituted by the New Jersey Malt Alcoholic Beverage Practices Act.
Dive Insight:
Elysian was one of AB InBev's moves to further assimilate itself into the craft beer industry, so it's no surprise that the company is upset about this.
The money received by craft breweries from commercial domestic companies like AB InBev is potentially enticing to be able to grow their operations, create more volume and varieties, and enjoy a larger distribution network.