munchies.vice.com – MillerCoors wants to charge Pabst more to brew their beer, so Pabst is taking them to court.
The days of chugging Pabst Blue Ribbon’s strangely sweet, slightly metallic, golden swill may be numbered, as the beloved beer of many a college kid and dive bar devotee could soon find itself without a producer.
Pabst might be in the name, but PBR is actually brewed, packaged, and shipped by MillerCoors, along with other Pabst products like Old Milwaukee and Lone Star. In a case that’s going to trial today, Pabst Brewing Company is taking MillerCoors to court over the latter’s attempt to end the partnership. The brand is seeking $400 million in damages.
As the Associated Press reports, the current agreement, which was signed in 1999, is valid until 2020, at which point it could be renewed for two possible extensions.
How those extensions might happen is where the companies differ. MillerCoors, who have seen sales decline in the United States since the agreement was signed, thinks that they can determine, based on their capacity, whether or not the partnership can continue. Pabst, however, believes that the two need to find a solution together if Pabst wants to continue the agreement.
The AP reports that according to Pabst, MillerCoors will only agree to an extension if Pabst pays $45 a barrel. Pabst, which currently needs 4–4.5 million barrels of beer per year, called that “a commercially devastating, near-triple price increase.” Pabst’s lawyers argue that this move threatens to put Pabst out of business, giving MillerCoors a stronger hold over the cheap beer sector.
Damn man, out of all the shitty beers PBR was always one of the better ones and a top pick among college kids….i’m gonna have to grab a 6 pack and pour one out in honor this weekend.