Anheuser-Busch Buys Seattle-Based Elysian Brewing

By Angela Chen 

Anheuser-Busch InBev NV agreed to buy Seattle-based craft-beer company Elysian Brewing Co., the latest acquisition for the beverage giant as it tries to capitalize on the growing popularity of smaller beer labels.

Financial terms weren't disclosed.

Elysian's portfolio includes Immortal IPA and other brands.

"Elysian's brands are an important addition to our high-end beer portfolio," said Anheuser-Busch Chief Executive Andy Goeler, who added that Elysian is the fastest-growing brewery in Washington state.

Belgium-based Anheuser-Busch, the parent company of brands such as Budweiser and Stella Artois, has seen revenue decline as younger drinkers favor craft beers and flavored malts. Four of the five largest U.S. beer brands, including AB InBev's Budweiser and Bud Light, posted volume declines last year. There are more than 3,000 small "craft" brewers in the U.S., twice as many as half a decade ago, and their combined shipments have grown by a double-digit percentage five straight years, according to the Brewers Association, which represents small brewers.

As consumers experiment with bolder flavors, Budweiser has gone from being one of four beers available on draft in a typical bar to one of 10 or more. In 2013, Americans drank more craft beer than Budweiser.

Growth in the U.S. isn't in mass-produced brands, but small labels like Chicago-based Goose Island, which makes labor-intensive beer like the orange-infused Sofie ale. AB InBev acquired Goose Island in 2011.

Last year, it bought both Oregon-based 10 Barrel Brewing Co. and New York-based Blue Point Brewing Co. AB InBev also makes Shock Top, a wheat beer it developed to compete with craft brewers.

Similarly, rival MillerCoors LLC, the U.S.'s No. 2 brewer, makes Blue Moon, a specialty wheat beer it introduced in 1995, and recently launched small labels like Batch 19 and Third Shift.

The acquisition includes the Seattle Airport Way brewery and four Seattle brewpubs.

The deal is expected to close in the first quarter.

Write to Angela Chen at [e-mail]

Access Investor Kit for Anheuser-Busch InBev SA

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=BE0003793107

Access Investor Kit for Anheuser-Busch InBev SA

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US03524A1088

Subscribe to WSJ: http://online.wsj.com?mod=djnwires