Anheuser-Busch plans to sell its wholly owned distribution business in Hawaii to multi-state wholesaler The Odom Corporation, the world’s largest beer manufacturer announced today.
Financial terms of the transaction were not disclosed. A-B also declined to disclose the number of cases changing hands. A company spokesperson said the transaction is expected to close in the fourth quarter, pending regulatory approval.
As part of the deal, Odom will add A-B’s case business in Hawaii from AB ONE, the company’s wholly owned distribution operations, formerly known as Anheuser-Busch Sales & Distribution Co. Additionally, Odom would receive Kona Brewing’s portfolio of offerings, a transition that the company said was approved by Kona Brewing Hawaii LLC.
The family-owned Odom Corporation operates wholesalers in five states: Alaska, Hawaii, Idaho, Oregon and Washington.
In Hawaii, Odom distributes craft beer brands such as Founders Brewing, Alaskan, Reuben’s Brews, Bale Breaker and Modern Times, among others, as well as Coca-Cola products from five warehouses: Honolulu, Kailua-Kona, Hilo, Lihue and Kaunakakai.
“Hawaii is a unique and important market, so it was critical for us to find a partner that had a clear vision for this business and its workforce,” Bob Tallett, A-B’s VP of business and wholesaler development, said in a press release. “That, combined with their local market and industry expertise, makes Odom the perfect partner on this agreement.”
“Odom is committed to the future success of our Hawaiian operations and looks forward to welcoming members of the Anheuser-Busch team in Hawaii to Odom as we continue to foster growth of the Anheuser-Busch and Kona Brewing products on the islands,” John Odom, CEO and chairman of the board of The Odom Corporation, added in the release. “As a family business, Odom deeply values the culture and heritage of success both Anheuser-Busch and Kona Brewing have experienced in the Hawaiian market, and we look forward to supporting the outstanding local team in this new venture.”
Notably, Craft Brew Alliance sold Kona Brewing’s operations in Hawaii for $16 million to PV Brewing Partners the investment firm made up of former A-B president Dave Peacock and Overland Park, Kansas-headquartered private equity firm VantEdge Partners — to remove regulatory roadblocks in the Portland, Oregon-headquartered craft brewery rollup’s sale to A-B last year. The sale of Kona’s Hawaiian operations closed in October 2020.
“We believe that, as our new distribution partner, Odom will continue excellent distribution and provide improved availability of the Kona brands,” Billy Smith, president of Kona Brewing of Hawaii, PV Brewing, said in the release. “We are pleased to work with the team from Odom given their proven track record of customer service in Hawaii and look forward to working with them on plans to grow our distribution and enhance the marketing behind the Kona brands. We thank Anheuser-Busch for their years of dedicated service behind the Kona business.”
In the press release announcing the deal, A-B described Odom as a “family-owned, second- and third-generation beverage and beer distributor with deep roots in the islands, a strong local management team and a willingness to invest in the future of Hawaii and its workforce.”
Founder Milt Odom established the company in 1934 in Alaska to sell bourbon, liquor, coffee, tea, spices, meats, candy and other dry goods, before transitioning to distributing Coca-Cola and other sodas, according to the company’s website. Odom acquired distribution rights for Miller Brewing Company products in 1970.
The sale to Odom follows two deals A-B made within its wholly owned distribution division last fall. In September, the company sold its Colorado distribution business, which moved about 10 million case equivalents annually, to Norcross, Georgia-headquartered Eagle Rock Distributing. In October, A-B acquired Ace Beverage’s operations in Los Angeles, adding about 5.5 million case equivalents.
In the weeks to come, A-B said it will work with Odom “to ensure a smooth and efficient transition.” The company added that there are no other changes for A-B’s other 14 wholly owned distributors.
Outside of Hawaii, Odom’s portfolio includes products from national breweries such as Molson Coors, Heineken, Constellation Brands, Mark Anthony Brands, Boston Beer, Sierra Nevada and Stone, and regional craft breweries, including Alaskan, Bale Breaker, Big Sky, No-Li and Uinta.