Karbach to be acquired by Anheuser-BuschInBev

Eric Warner, brewmaster at Karbach Brewing Co., from left, Felipe Szpigel, president of Anheuser-BuschInBez's High End business unit, and Ken Goodman and Chuck Robertson, both co-founders of Karbach Brewing Co., laugh as they stand in the brewhouse at Karbach brewery, Thursday, Nov. 3, 2016, in Houston. Anheuser-Busch announced that they will acquire the company. less Eric Warner, brewmaster at Karbach Brewing Co., from left, Felipe Szpigel, president of Anheuser-BuschInBez's High End business unit, and Ken Goodman and Chuck Robertson, both co-founders of Karbach Brewing ... more Photo: Jon Shapley, Houston Chronicle Photo: Jon Shapley, Houston Chronicle Image 1 of / 56 Caption Close Karbach to be acquired by Anheuser-BuschInBev 1 / 56 Back to Gallery

Fast-growing Karbach Brewing Co. of Houston is the latest U.S. craft brewery to be acquired by a global beer giant, announcing Thursday morning that Anheuser-BuschInBev is buying it for an undisclosed amount.

The 5-year-old Karbach will be part of the company's U.S.-specific High End business unit, joining the likes of Stella Artois and Shock Top; Goose Island, Breckenridge, Elysian and five other craft breweries; a cider company; and a hard seltzer company.

Ken Goodman and longtime business partner Chuck Robertson, who founded the brewery in a building they formerly used in their beer distributorship on Karbach Street, said existing management and brewers will remain in place and the company will retain much of its independence while also gaining access to the resources that will help it continue to grow.

"The financial piece wasn't that important at the end of the day," Goodman said. "It was the resources."

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High End president Felipe Szpigel cited Karbach's Love Street Kölsch as an example of a lower-alcohol, or "session," beer that will fill a niche in the AB-InBev portfolio.

He said he first visited the Karbach brewery during a site visit to Houston about a year and a half ago and as he talked with the owners and brewers, "I really fell in love with what they are doing."

Brewmaster Eric Warner said the move will allow his team to collaborate with those other craft breweries.

"The High End wants to see us innovate," he said.

Szpigel and the Karbach team said they will continue to focus on developing the Texas market for the next couple of years.

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The deal comes three months after MillerCoors announced it would take over the Fort Worth area's Revolver Brewing. To date, more than a dozen deals have been announced involving smaller craft breweries and cider companies and mainstream beer companies like AB-InBev and MillerCoors.

The transition has not always been well received initially by fans, who have flocked to craft beers in recent years in large part as a rejection of the mass-produced products.

Feelings were heightened during last year's Super Bowl when AB-InBev aired a Budweiser commercial that derided craft beers and said its beer was made "the hard way." Earlier this week, the head of the trade group for the smaller independents offered a tart response to AB-InBev chief Carlos Brito's assertion that "consumers are a bit tired of choice" while calling out the company's "craft brewery shopping spree of late."

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"While a growing corporate "craft" portfolio of once-independent brands benefits from AB's marketing muscle, the truly small and independent brands not under their ownership get pushed off the shelves and left off of restaurant menus," Brewers Association CEO Bob Pease wrote. "That's reducing choice all right—but not based on beer lover demand.

"The shelves and taps belong to beer drinkers and retailers, not the producers. If one mega company tries to manufacture or force demand, consumers will rebel."

Karbach has grown rapidly since its launch in late summer 2011. Last year, it produced 55,000 barrels of beer and it is on track to make more than 80,000 this year.

The AB-InBev investment will push Karbach's annual capacity to 150,000 or more barrels by 2019, the companies said.

Anhueser-Busch claims 45.8 percent share of the U.S. beer market. Its stock was down slightly prior to the formal announcement.