Pabst Blue Ribbon for sale – again

It ’s still a rumour but the food industry investor C. Dean Metropoulos has offered the Pabst Brewing Company for sale. Pabst Blue Ribbon is a retro-chic “blue-collar beer” enjoyed by hipsters and budget drinkers alike.

Investors and analysts estimate the company could fetch between USD 500 million and USD 1 billion, it was reported in early March 2014.

Pabst is one of the oldest breweries in the United States. It was founded in Milwaukee in 1844. The company ’s portfolio of beer brands also includes Schlitz and Old Milwaukee. It was bought by the beer and property tycoon Paul Kalmanovitz in the 1980s. The company was later left in a charitable foundation after Mr Kalmanovitz ’s death until a judge declared that it had to be sold, as a charity was principally not for profit (which Pabst turned). By 2001 Pabst had become a virtual brewery and production was contracted out to the Miller Brewing Company.

Mr Metropoulos bought Pabst from the Kalmanovitz Charitable Foundation in 2010 for USD 250 million.

Pabst ’s sales reached a peak of 18.2 million hl in 1978 and then went into steep decline. By 2010 sales had dropped to 6.5 million hl. Although Mr Metropoulos was probably only milking the assets, he still managed to increase volume sales to 6.9 million hl beer in 2012, according to estimates by Beer Marketers ’ Insights.

Putting his personal wealth at USD 1.3 billion (Forbes magazine), Mr Metropoulos built his fortune turning around struggling food brands like Chef Boyardee quick meals, Bumble Bee Tuna, and Vlasic pickles. Mr Metropoulos came to the United States from Greece as a child and has sold everything from milk to pickles to frozen foods over the last few decades, it was reported.

The expected sale of Pabst is likely to attract interest from private equity firms. In addition to an outright sale, Mr Metropoulos is also considering taking Pabst to the stock market, media say.