Anheuser-Busch InBev (BUD), one of the world’s largest beer companies, is in talks to buy BeatBox, a brand known for its fruity, high-alcohol punch and tea drinks, according to The Wall Street Journal. The deal could value BeatBox at around $700 million, though nothing is finalized yet. BeatBox was founded in 2011 and is known for its colorful, screw-cap Tetra-Pak boxes. The Austin-based company, backed early on by Mark Cuban, is expected to hit $175 million in revenue by the end of 2024.
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AB InBev, which owns big-name brands like Budweiser, Bud Light, Stella Artois, and Michelob Ultra, is worth about $111 billion. The company is looking to expand its reach with younger legal-age drinkers, a group that BeatBox has connected with through music festival partnerships and social media buzz. In addition, BeatBox’s low price—about $4 to $5 per box—and its alcohol content of 8% to 11% have helped it gain a strong following.
Buying BeatBox would strengthen AB InBev’s ready-to-drink portfolio, which already includes brands like Cutwater cocktails and Nütrl vodka seltzers. This potential deal follows last year’s acquisition of BuzzBallz—a 15% ABV ready-to-drink cocktail—by Sazerac. This shows how alcohol companies are chasing fast-growing drink trends. Moreover, while beer sales overall have been slowing, Michelob Ultra has remained a top performer for AB InBev by appealing to health-conscious consumers with its low-calorie, low-carb profile.
Is BUD Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on BUD stock based on three Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average BUD price target of $76.50 per share implies 24.6% upside potential.
