Craft Brew Alliance Announces New Agreement With Pabst To Support 'Strategic Growth Objectives For Both Companies'

Craft Brew Alliance Inc BREW, an independent craft brewing company, announced a new brewing agreement with Pabst Brewing Company, North America's largest privately held brewing company. As part of the new strategic agreement, Pabst Brewing Company's subsidiary, Rainier Brewing Company, will begin brewing its Rainier Pale Mountain Ale (and other Rainier brands) at Craft Brew Alliance's brewery in Woodinville, Washington. The facility was constructed in 1994 with a 200,000 barrel per year capacity and supporting bottling operation. The agreement also consists of an option for Pabst Brewing Company to purchase the brewing facility from Craft Brew Alliance at any time over the next 3 years. Craft Brew Alliance noted the agreement "supports strategic growth objectives for both companies." Shares of Craft Brew Alliance were trading higher by 0.01 percent early Tuesday morning but have lost more than 37 percent of its value over the past year.