Pabst Brewing Company today announced an exclusive import agreement with Mexico’s oldest craft brewery, Cerveza Minerva.
Specific terms of the transaction — which is set to begin next spring — were not disclosed, but Pabst said it would launch the brand in “a small number of test markets,” and begin building national distribution for Minerva’s beers over the course of 2017.
In a press release, newly appointed CEO Simon Thorpe said the decision to import a Mexican craft brewery’s products came after various Pabst distributors and key U.S. retailers suggested the company look south of the U.S./Mexico border for partnership opportunities.
“A critical piece of PBC’s strategy is to build our international brand portfolio with high-end, innovative craft brands,” he said via the release.
According to market research firm Nielsen, off-premise volume sales of imported Mexican beer are up 11.9 percent over the last 52 weeks and those products now account for 12.7 percent of total beer category dollars.
The Minerva announcement comes just one week after Pabst Brewing chairman Eugene Kashper took the stage at the Brewbound Session to discuss his company’s plans for establishing partnerships in the craft space.
“We want to develop a platform that can be really nimble and powerful, where we can partner with brand owners in the high end space and help them maximize the potential of their brands,” he said during an interview at the conference.
Founded in 2002, Cerveza Minerva is the “largest privately held” brewery in Mexico, according to Pabst. The company produces 20,000 hectoliters (about 17,000 barrels) of beer annually and distributes products to 25 Mexican states.
In its latest report, research firm IRI Worldwide said Mexican imports, up more than 14 percent year-to-date, accounted for 75 percent of total import beer volumes through November 27.
Pabst — which makes and markets heritage brands like Pabst Blue Ribbon, Schlitz and Lone Star — also imports the Tsingtao line of beers from China, and also sells a number of international cider products via a partnership with C&C Group subsidiary Vermont Hard Cider.
Additional details can be found in Pabst’s press release.