Japanese whisky-maker Suntory Holdings is in talks to acquire U.S. brewer Boston Beer, known for its Samuel Adams brand, the Wall Street Journal reported, citing people familiar with the matter.
Boston Beer said it was aware of the media report.
"We do not comment on rumours. We are fully focused on our business as an independent company and our return to growth," the U.S. company said in a statement.
Shares of Boston Beer fell about 5% after the bell, reversing gains made in late trading after the report.
The deal would give Suntory, which sells beverages like Jim Beam bourbon, Yamazaki whiskey and Roku gin, a bigger foothold in the U.S. beer market.
Beam Acquisition
Back in 2014, Suntory paid $13.6 billion to buy U.S. spirits company Beam, giving it access to a stronger distribution network not just in the United States but in key emerging markets such as India, Russia and Brazil. It also sells in Japan and Europe.
The two parties were in early talks, the WSJ report said, adding that "it is still possible the talks won't result in a transaction, or that another suitor could emerge".
Boston Beer has a market capitalisation of roughly $3 billion.
Boston Beer Performance
In April, the brewer reported a 3.9% increase in net revenue in the first quarter of its financial year, while shipments increased by 0.9%.
“We remain committed to investing across our portfolio of brands to drive long-term revenue growth while also expanding our margins," chairman and founder Jim Koch said at the time. "Our highly cash generative business and strong balance sheet has enabled us to repurchase $65 million in shares year-to-date and will fuel our 2024 investments.”
Additional reporting by ESM
