AB-InBev buys craft brewer Pirate Life
And another craft brewer goes to AB-InBev. After acquiring Sydney’s 4 Pines in September 2017, AB-InBev has snapped up Adelaide’s Pirate Life, media reported on 30 November 2017.
AB-InBev became the owner of Australia’s brewer CUB last year when it bought SABMiller, which in late 2011 cemented an USD twelve billion takeover of Foster’s Group, the long-time owner of CUB. CUB is the market leader with a market share of about 46 percent, ahead of rival Lion, which has 42 percent.
Although the transaction value was not disclosed, AB-InBev said it will inject AUD ten million (USD 7.6 million) into Pirate Life’s new brewery, to be built in nearby Port Adelaide. Its current brewery will become a site dedicated to creating new beers, including sours, seasonal and barrel-aged products.
Pirate Life was founded in 2014 by West Australian father-and-son team Michael and Jack Cameron and Jack’s best mate Jared “Red” Proudfoot. It is best known for packaging its beers in cans – beers which already have achieved a reputation for consistent quality.
According to estimates, Pirate Life produces about 30,000 hl beer annually, and when the new brewery is up and running its capacity will increase to about 80,000 hl.
Allegedly, AB-InBev’s negotiations to buy Pirate Life were “much quicker” than those for 4 Pines, which dragged on for about a year. But in view of a spate of craft brewery deals in the past few months – Feral being sold to Coca-Cola Amatil and Vale to Bickford’s – Pirate Life must have feared that the window of opportunity for a lucrative exit would close quickly.
There a still over 400 independent craft breweries operating in Australia, but among the larger ones there are hardly any left to buy.
