Anheuser-Busch InBev has announced a major investment in BeatBox Beverages, acquiring a majority stake in the popular party punch maker for up to $490 million. This move positions the Bud Light brewer on a path towards full ownership of the brand, which is particularly favored by Generation Z consumers.
The deal involves Anheuser-Busch acquiring 85% of BeatBox, with the potential to reach 100% ownership within five years based on a predetermined pricing formula. This acquisition adds to the alcohol giant’s expanding portfolio of beverages beyond beer, which already includes brands like Cutwater Spirits, Nütrl Vodka Seltzer, and Phorm Energy.
BeatBox Beverages has experienced rapid growth in recent years, thanks to its high alcohol content, vibrant packaging, and bold fruit flavors. The brand is projected to generate $225 million in revenue in 2025 and aims to expand its reach to 10 million new households while introducing a new brand in the near future.
“We could not be more thrilled to have BeatBox join our portfolio,” said Brendan Whitworth, CEO of Anheuser-Busch. “We have a proven track record of developing successful brands, and I am excited to collaborate with BeatBox on their next phase of growth.”
BeatBox offers a range of flavors, including blueberry lemonade, orange blast, cherry limeade, and cranberry dreams, available in both wine-based and malt-based versions with alcohol by volume rates of 11.1% or 8%. The brand gained recognition in 2014 when it appeared on the TV show “Shark Tank” and received investments from Mark Cuban and Shaquille O’Neal.
According to Anheuser-Busch, BeatBox Beverages generated over $340 million in U.S. retail sales in the year ending Nov. 23, showing a growth rate of over 50% year-over-year. Despite a general trend of reduced alcohol consumption, there is still a demand for beverages with higher alcohol content, as evidenced by the increasing proportion of new launches above 5% ABV in recent years.
Anheuser-Busch has diversified its product range to cater to changing consumer preferences, with successful brands like Michelob Ultra leading the way. In addition to beer, the company now offers a variety of ready-to-drink and non-alcoholic options, including Skimmers vodka tea, Nütrl Vodka Seltzer, and the recently launched Phorm Energy drink.
Overall, Anheuser-Busch’s investment in BeatBox Beverages reflects the company’s commitment to innovation and adaptation in response to evolving consumer trends. This strategic move positions the alcohol giant for continued growth and success in the competitive beverage market.