Pabst Brewing Company has entered a significant contract brewing agreement with Anheuser-Busch InBev (AB InBev), commencing in the first quarter of 2025. This collaboration aims to enhance Pabst’s operational efficiency and supply chain flexibility, according to reports from Brewbound and other industry sources.
The agreement comes shortly after the expiration of Pabst’s nearly two-decade-long partnership with Molson Coors, which ended in December 2024. To mitigate the production gap, Pabst had already secured a long-term deal with City Brewing in 2019, ensuring a 20-year production arrangement to support its brewing needs (inside.beer, 11.11.2019). City Brewing's facilities in Wisconsin, Pennsylvania, Tennessee, and California continue to brew significant volumes of Pabst's products.
Eugene Kashper, co-owner of Blue Ribbon Partners which owns Pabst Brewing Company, also holds a significant ownership interest in City Brewing, creating a close strategic relationship between the two companies. In November 2020, Pabst completed the acquisition of Molson Coors’s Irwindale brewery for USD 150 million, with plans to evaluate reopening the facility (inside.beer, 05.11.2020). However, Pabst later sold the facility to City Brewing, which began production at the site in August 2021, further expanding its brewing capabilities.
With the new agreement, AB InBev’s extensive network of 12 breweries, including its Houston facility, will produce Pabst's iconic brands like Lone Star and Pabst Blue Ribbon. Pabst CEO Paul Chibe highlighted that this collaboration will improve supply chain stability and growth opportunities across its product portfolio. The brewing at AB InBev’s facilities will remain under the supervision of Pabst's master brewer John Kimes, ensuring adherence to proprietary recipes and quality standards.
While Pabst has relied heavily on partnerships with contract brewers since closing its Milwaukee brewing site in 1996, its current approach reflects a more integrated strategy. By leveraging its ownership ties with City Brewing and new partnerships with AB InBev, Pabst ensures flexibility and control over production, positioning itself competitively within the evolving beer market.
Meanwhile, AB InBev has also focused on streamlining its operations, having recently invested heavily in its Los Angeles and St. Louis plants and sold several craft beer brands to Tilray Brands in 2023.
The partnership reflects mutual benefits, with AB InBev strengthening its market presence and Pabst ensuring robust production capabilities across its extensive portfolio. This marks another step for Pabst in its journey to bolster its competitive edge while maintaining its heritage as one of North America's largest privately held brewing companies.
