On Friday, the Wall Street Journal (WSJ) reported that Suntory, owner of Jim Beam, has entered early talks to purchase Boston Beer Company (BBC). If the deal comes to fruition, Suntory’s presence on the U.S. beer market will expand significantly.
Suntory and BBC have a shared history, so the potential purchase isn’t coming out of left field. In 2021, the alcohol conglomerate announced a strategic partnership with the Boston-based brewery to use Suntory-owned spirits in BBC’s portfolio of RTDs and to formulate bottled Truly Vodka.
The value of a potential deal is unclear, though the WSJ argues it would likely include a premium of BBC’s $3 billion market capitalization.
BBC, perhaps best known for producing the Samuel Adams lineup, has recently experienced declining share prices which have fallen over 25 percent in 2024. While demand for BBC-owned Twisted Tea remains strong, demand for previously buzzy brands like Truly Hard Seltzer, Angry Orchard Hard Cider, and Dogfish Head beer have cooled significantly as consumer palates change.
WSJ reports that those close to the situation have disclosed that the potential deal is still in its early stages, and that it’s possible that a transaction will not arise. It also remains unclear as to whether Suntory will remain the only interested party. Regardless of who a future buyer may be, any sale will have to be approved by Jim Koch, who founded BBC in 1984 and currently serves as chairman with 100 percent of the voting rights on the company’s Class B common stock.
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