USA: Anheuser-Busch investment in craft brewing market is expanding

Widmer Brothers Brewing Co. is buying a minority stake in Chicago-based microbrewery Goose Island Beer Co. Because Anheuser-Busch Cos. owns a large stake in Widmer, a Portland, Oregon, microbrewery, the investment will increase the St. Louis brewer's exposure to the rapidly growing craft brewing market, The Saint-Louis Today posted June 07.

Last month, the Chicago Tribune had reported that Anheuser-Busch was close to buying up to 35 percent of Goose Island in a deal that would shift Goose Island beer distribution to A-B wholesalers.

However, Goose Island has been talking to Widmer Brothers, not Anheuser-Busch, about making an investment in the Chicago microbrewery, Goose Island said June 07. An agreement by Widmer to buy a stake has been reached, though the discussions won't be completed for a few more days.

Goose Island declined to discuss the transaction price or the size of Widmer's equity stake, only saying Widmer would be a minority investor.

However, the investment won't change Goose Island's operations, management or beer, the Chicago microbrewery said in a press release. Goose Island also announced a deal also allows it to distribute beer through A-B wholesalers.

Goose Island brewed about 54,000 barrels last year, a 12 percent increase from 2004 but down from 2003's output of 56,000, according to trade publication Beer Marketer's Insights. That is roughly a quarter of Widmer sales.

Though craft brewing, which includes microbreweries and brewpubs, represents only 3.5 percent of the U.S. beer market last year, strong growth and higher prices make craft beer attractive.

During the 1990s, Anheuser-Busch had invested in several microbreweries. Besides owning a 39.5 percent stake in Widmer, A-B has a 34-percent stake in Seattle-based Redhook Ale Brewery Inc. But the recent surge in craft brewing sales renewed A-B's interested in this niche market.

This year, Anheuser-Busch has been scouting partnership opportunities with other microbreweries, such as Kansas City-based brewery Boulevard Brewing Co.

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