This Bud's For You: Budweiser Buying Goose Island (BUD)

Pop a top and grab a glass. There's more M&A today, this time in the beer space. According to the Wall Street Journal, Anheuser Busch-InBev BUD is going to buy Chicago brewer Goose Island for $38.8 million. This will allow BUD to expand its presence into craft beers, as consumers move towards specialty beers and and other high-margin brews. The company will also increase its advertising spending on its other beer brands, such as Shock Top wheat ale, Belgian import Stella Artois, Landshark Lager and other specialty brews. "We really needed to step up our efforts in the high end," Dave Peacock, president of Anheuser's U.S. unit, said in an interview today with the Journal. Goose Island Beer Co., founded in 1988, is known for its beers such as Honkers Ale, 312 Urban Wheat Ale and Matilda. At last check, shares of Anheuser-Busch InBev NV were off 67 cents to $56.80, a loss of 1.2% on the day.