Craft Brew Alliance (CBA) and Anheuser-Busch (AB) have signed commercial agreements to bolster their long-term relationship and create growth opportunities.

The agreement terms include an amended and extended master distribution agreement, a new contract brewing arrangement, and an international distribution agreement.

CBA CEO Andy Thomas said: “We are proud of our long-standing relationship with AB and have always been candid about the competitive advantage of our distribution arrangement, which allows CBA to independently manage our brands and still enjoy the benefits of being a valued part of AB’s exceptional wholesaler network.

"We’re excited to build on this partnership and look forward to the financial and operational benefits."

“As both of our companies evolved over the past 18 months, it became clear that our strategic focus and commitment to the growth of craft beer were increasingly more aligned, and we started to explore ways to collaborate more closely.

“We’re excited to build on this partnership and look forward to the financial and operational benefits, which will positively impact our top and bottom line.”

The two companies have extended the existing fee structure of their master distributor agreement for an additional ten years, to 2028.

This amended agreement secures CBA’s brands in the industry’s wholesaler network, enabling continued investment in brand growth and strategic partnerships, such as Appalachian Mountain Brewery and Cisco Brewers.

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As per the terms of a new contract brewing arrangement, CBA and AB will partner to move up to 300,000 barrels-worth of volume into AB’s breweries.

This agreement will support CBA’s ongoing brewery footprint optimisation and enable both the firms to achieve a higher level of operational efficiency.

Under the international distribution agreement, AB will support the expansion of CBA’s portfolio of brands globally.

This agreement builds on CBA’s recent distribution arrangements with AB, under which Kona was launched in Brazil and Mexico, and creates opportunities to speed up the growth of CBA’s craft portfolio in more international markets.