Why AB InBev bought 4 Pines Beer

AB InBev surprised the drinks industry this morning when it announced the purchase of Sydney craft brewer 4 Pines.

Fittingly, President of Business Unit Australia Peter Filipovic tells drinks central there were four reasons behind the purchase: "They make great beers, they have great people and with that comes a great cultuer. The fourth thing is the unique consumer experiences they offer at their venues, which really bring the brand to life."

4 Pines co-founder Jaron Mitchell confesses he thought "Flip" was joking when he sounded him a year ago about selling.

“When AB InBev first approached me I was sceptical and didn’t think much more of it than an opportunity to nab some grand final tickets. We’ve spent the last 10 years building a business with ideals that have worked for us so far and we weren’t willing to compromise on anything. And we haven’t,” Mitchell said.

He admits the news came as a shock to his employees. "I don't expect them to drink the Kool Aid on day one, but the team are very positive about change and are accustomed to the company metamorphosing every few months."

Mitchell said being purchased by AB InBev only had upsides for the brand.

"The deal will enable 4 Pines to expand its operations and retain and grow their people, culture and identity," he noted.

"Our aspiration is to grow the 4 Pines identity and operations locally in Australia and globally. The access 4 Pines will receive to AB InBev’s global resources will provide a platform to realise our goals even sooner."

He has also assured staff that the 4 Pines team will be unchanged and management will remain in place to help grow the business, they will keep making beer from their breweries on Sydney’s Northern Beaches and the company will continue to operate all existing venues.

What's "craft" anyway?

Mitchell was philosophical about being perceived as selling out on being "independent" and a "craft' brewer.

"I've always seen us simply as a brewing company that aims to make beers customers enjoy.

"Some people will think our beer tastes different. No, it won’t."

Filipovic said the acquisition of 4 Pines was part of a strategy to build on the success of brands such as Fat Yak.

"Fat Yak Pacifico has been our most successful launch in the past two years and 4 Pines will expose us to an even broader range of consumers." 

As for whether there were plans to acquire more Aussie brands, he said "4 Pines remains our focus for the short-to-medium term."

The word from the top

Jan Craps, President of AB InBev’s Asia Pacific South Zone, said he was incredibly excited to be partnering with 4 Pines.

“Anyone who knows Jaron and the 4 Pines team know they do things differently, which is why we were so interested in teaming up with them,” he enthused.

“4 Pines is a truly innovative business with a great range of beers, talented people and a genuine, values-driven culture which is incredibly important to us.”

“We will support their ambitious plans for the future, using our expertise and capability to help them get their exceptional beer to more people in Australia and globally."

“4 Pines brewers will continue to make beer from their breweries on Sydney’s Northern Beaches, and continue doing what they do best – having fun making some of the world’s best and most outstanding beers.” 

IBA cancels 4 Pines membership

Chris McNamara, the Executive Director of IBA issued a statement saying: “The Independent Brewers Association would like to congratulate the 4 Pines team on the sale. They have done a great deal of work in developing the good beer scene in Sydney and beyond and we wish them well in the future.

“From an industry perspective it is disappointing to lose a key player but it does open up more opportunities for breweries who choose to remain independent. The recent Beer Cartel survey showed that beer drinkers overwhelmingly preferred to support independent breweries over those owned by the large corporates. The purchase underscores the impact the independent brewing industry is having on the traditional beer market in Australia and overseas.

“The sale to AB InBev will mean that 4 Pines is no longer eligible to be a member of the Independent Brewers Association and we will begin the process of terminating their membership at the next board meeting.”