One day after naming Simon Thorpe the CEO of Pabst Brewing Company, chairman Eugene Kashper offered a window into the future of his company’s merger and acquisition strategy during Thursday’s Brewbound Session in San Diego.
Thorpe, known for his M&A work as the former CEO of Duvel USA, where he was instrumental in purchasing Boulevard Brewing and Firestone Walker, will be tasked with “fine turning and fixing” Pabst’s partner strategy, Kashper said.
“We’re on the same page in terms of finding the best fit to build the right portfolio over the never five, 10 years,” Kashper told Brewbound editor Chris Furnari. “We’re looking to build the right portfolio of brands breweries that are complementary.”
Kashper said he always anticipated splitting the roles of CEO and chairman but didn’t have “the right partner to take Pabst to the next level”
“Our ambitions are pretty significant,” he said.
However, when Thorpe became available, he made the call.
“He stood out as an industry visionary,” Kashper said. “He gets it.”
And now Pabst is actively seeking new craft partnerships.
“We’ve had plenty of conversations,” Kashper said. “We’re being a little more proactive now.”
Pabst’s offer to potential partners? The ability to grow by leveraging the company’s supply chain infrastructure, nationwide distribution network and strong retail relationships. Kashper said he’s seeking partners for long-term, “arms-length agreements,” similar to the company’s relationship with Vermont Hard Cider Company.
During the interview, Kashper also said he wanted to find the “right partners” within the “high-end space and maximize the potential of those brands.” In a potential deal, partners would retain control of their brand, oversee innovation efforts and, in some cases, not have to sell an equity stake in order to access additional production capacity or utilize Pabst’s sales teams.
“What we’re looking for are people who don’t want to sell,” Kashper said. “Our goal for a craft brewer would be to make several times what they would have made without us and for us to be profitable as well.”
Kashper sounded committed to finding the right partner, one that fits in the right geographic footprint and that doesn’t compete with other potential partners. He said he’s looking for synergy — and a local brand that might grow into a regional brewery.
That said, Pabst’s heritage brand portfolio remains the company’s number one priority, Kashper said.
“That makes our business go,” he said.
Full video playback of Kashper’s conversation at Brewbound Session is available below.