Anheuser-Busch to buy Arizona’s Four Peaks Brewing Company

Anheuser-Busch has agreed to acquire one of Arizona's largest breweries, Four Peaks Brewing Company, the beer giant said Friday.

BY KTAR NEWSROOM

Dec 18, 2015, 10:10 AM Updated: Dec 21, 2015, 10:06 am

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PHOENIX — Anheuser-Busch has agreed to acquire one of Arizona’s largest breweries, Four Peaks Brewing Company, the beer giant said Friday.

The acquisition will see Tempe-based Four Peaks become a member of Anheuser-Busch’s craft and unique beer sector called The High End, which consists of six other breweries.

“As the leading craft brewery in Arizona, we’re proud of what we’ve built and of our brewing heritage,” Jim Scussel, Four Peaks co-founder, said in a release. “We’re excited to build on that success with The High End.”

Four Peaks will continue to brew all of its beers and will keep all of its Arizona locations open, including one at Phoenix Sky Harbor.

“For 20 years, we’ve had more amazing experiences than I can count doing what we love to do most – brewing great beer and sharing it with a growing craft community in Arizona that has supported us from day one,” Andy Ingram, another Four Peaks co-founder, said in the release.

Anheuser-Busch has previously added other craft beer standouts — such as Goose Island Beer Company, Elysian Brewing Company and Golden Road Brewing — to The High End portfolio.

The deal to acquire Four Peaks, the terms of which were not announced, is expected to be finalized in early 2016.

Arizona Gov. Doug Ducey signed a bill in March increasing the production cap for state microbreweries as Four Peaks neared the old limit. The microbrewery got the cap changed twice previously to allow it to keep its license and still own and run restaurants.

He praised the deal on Twitter, saying “great beer and hard work pay off!” But others on social media lamented the loss of local control of the brewery.

The new law allows microbreweries to keep up to seven retail locations and brew up to 6.2 million gallons of beer per year. After that, they’ll have to give up their restaurants and apply for a producer license.

Four Peaks expects to brew about 2.1 million gallons in 2015. It will continue to brew its flagship Scottish-style ale, Kilt Lifter, that accounts for more than 60 percent of the brewery’s sales, as well as other specialty brews.

Americans’ enthusiasm for microbrews reached new heights last year as craft brewers accounted for 11 percent of the U.S. beer market, according to the Brewers Association, a trade group for small, independent brewers.

But the popularity had pushed craft breweries up against the country’s longstanding three-tier system that governs the beer industry. It was designed to prevent mega breweries such as Anheuser-Busch from controlling beer production, distribution and retail sales at restaurants and stores. The three tiers consist of large breweries, distributors and retailers.

Big brewers have noticed, with small craft breweries being snapped up as companies like Anheuser-Busch seek to tap into the market.

The Associated Press contributed to this report.