Anheuser-Busch InBev’s Acquisition of the Craft Brew Alliance

In 2020, Anheuser-Busch InBev (AB) acquired the Craft Brew Alliance (CBA). CBA consists of several craft beers, including Kona, Redhook, Widmer Brothers, and Omission. Prior to the full acquisition, AB owned approximately 30% of CBA. The Department of Justice (DOJ) investigated the proposed acquisition, focusing on potential competitive effects in Hawaii where the Kona brand originated and has a substantial share of sales.

Compass Lexecon Senior Managing Director Dennis Carlton filed a number of reports and made two presentations to the DOJ, leading to a settlement in which AB/CBA divested Kona’s Hawaiian assets.

AB was represented by Steven C. Sunshine, Steven Albertson, and John R. Thornburgh II of Skadden, Arps, Slate, Meagher & Flom LLP, and Deborah A. Garza of Covington & Burling LLP. CBA was represented by Nelson O. Fitts and Emily E. Samra of Wachtell, Lipton, Rosen & Katz. Professor Carlton was supported by Zach Flynn, Bradley Reiff, Yoad Shefi, and Jonnie Tompkins of Compass Lexecon’s Chicago office.