Recent speculation linking AB InBev with Beatbox Beverages has been realised, with the group’s US unit agreeing to buy a majority stake in the malt- and wine-based RTD brand.
The transaction, announced today (5 December), is for 85% of the 14-year-old business and will cost Anheuser-Busch “up to” US$490m. AB InBev’s US division, which currently handles distribution in the country for Beatbox, will have the option to acquire the remaining 15% after five years, “based on a predetermined pricing formula”.
The confirmation came two weeks after reports broke regarding negotiations between the two. Unnamed sources were cited by the Wall Street Journal as valuing Beatbox at about $700m. Based on the price paid for 85%, the RTD company would cost around $575m if bought outright on the same valuation.
Based in Texas, BeatBox produces 11.1% ABV, fruit-flavoured punches and teas that have a wine base and are available in 50cl Tetra Pak cartons. The brand rose to prominence in 2014, three years after it was founded, thanks to an appearance on the US reality programme, Shark Tank. Investor and ‘shark’ Mark Cuban agreed to pay $1m for one-third of the business.
Sales for the year in 2024 have been estimated at around $175m.
“I have spent the past year getting to know (co-founder & CEO) Justin (Fenchel) and the team at BeatBox,” said Anheuser-Busch CEO Brendan Whitworth. “I’m confident that their … ability to connect with their consumers will be a strong complement to our existing team and capabilities.
“We have a proven playbook for building winning brands, and I look forward to partnering with BeatBox and embarking on their next chapter of dynamic growth together.”
Upon completion of the deal, expected in Q1 next year, Beatbox will join the Cutwater Spirits and Nütrl brands in AB InBev’s RTD stable.
