USA: Imported beers outperform domestic brands for the first time in 2024

On Thursday, January 2, Pabst Brewing Company announced a new contract brewing agreement with Anheuser-Busch InBev, according to a report from Brewbound. Starting in the first quarter of 2025, the San Antonio-based brewery will begin using AB InBev’s several production facilities to contract brew many of its beloved beer brands.

The news arrives just after Pabst’s nearly two-decades-long contract brewing agreement with Molson Coors ended in December 2024. When the contract’s end date was made public in 2019, the Blue Ribbon manufacturer announced that it had sealed a similar arrangement with City Brewing set to continue through 2040 to offset the loss in Molson Coors production. The La Crosse, Wisc.-based company stands as one of the largest contract brewers in the U.S. with facilities in Wisconsin, Pennsylvania, Tennessee, and California.

Since Pabst closed its Milwaukee brewing facility in 1996, the beverage company has brewed its iconic brands — including Pabst Blue Ribbon, Old Milwaukee, Old Style, Lone Star, and Stroh’s — at third-party plants. In a press release, Pabst announced that the new AB InBev deal will allow for “greater supply chain flexibility and improved efficiencies,” going on to note that City Brewing’s facilities will still “continue to produce significant volumes” for Pabst under the supervision of Pabst master brewer and supply leader John Kimes.

“By entering into this agreement with Anheuser-Busch, Pabst will strengthen its supply chain, allowing us to better meet the needs of our valued retail and distributor customers,” Pabst CEO Paul Chibe said in a press release. “With both City Brewing and Anheuser-Busch as contract brewing partners, Pabst will have even greater supply certainty and growth potential across our full portfolio of products.”

AB InBev currently operates 12 breweries across the country. According to Brewbound, Lone Star will be the first Pabst brand to be contract-brewed under the new agreement with production set to commence at the conglomerate’s Houston plant in early 2025.

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