According to foreign media on February 21, Anheuser-Busch, a wholly-owned subsidiary of Budweiser InBev, acquired Cutwater Spirits to expand its spirits and canned cocktails business.
Under the agreement, Cutwater will join Anheuser-Bush's non-beer brand portfolio, which includes Babe Rose, HiBall and Spiked Seltzer brands, including energy drinks, alcoholic bubble water, bubble juice and other product lines.
Budweiser InBev partnered with Starbucks in June 2016 to invest $1 billion in the production and sale of instant tea beverage Teavana in the United States and started its non-beer business. In 2017, it acquired Hiball, an organic energy beverage brand, to expand its non-alcoholic beverage business.
In 2018, Carlos Brito, CEO of Budweiser InBev, said that by 2025, 20% of its sales would come from its low-alcohol or non-alcoholic product portfolio.
However, the deal with Cutwater marks a strategic shift, as the world's largest brewery aims to achieve growth in the spirits market.
Cutwater Spirits was founded in 2016, headquartered in San Diego, with a 50,000 square foot production facility. Its full range of products include seven blending accessories, 14 canned cocktails and 16 spirits (including whiskey, vodka, gin and rum).
The company currently has distribution channels in 34 states of U.S., and now seeks to expand its brand size faster by drawing on Anheuser-Bush's knowledge of logistics, distribution, brand building and packaging.
Yuseff Cherney, founder of Cutwater Spirits, and Marina Hahn, co-founder of Anheuser-Bush's new business, said they hoped the partnership would enable Cutwater Spirits to sell its premium spirits and canned cocktails to more places.
