Who Owns Kona Brewing?

Kona Brewing is a Hawaiian brewery based in Kailua-Kona. The company was founded in 1994 by Cameron Healy and Spoon Khalsa. They opened the Kailua-Kona Pub on Hawaii’s Big Island in Nov 1998. Beer fans can visit the pub to sample Kona’s brews – also known as liquid aloha.

Kona Brewing is known for its Hawaiian roots. The brewery is leaning further into its island-adjacent image. In May 2023, Kona Brewing rebranded to Kona Big Wave after its core brew.

The rebranding included a new logo and a packaging refresh with redesigned bottles, featuring the brand’s signature hibiscus flower and a brighter color palette. [1]

Kona Big Wave grabbed market share from other beers thanks to its authentic connection to the Hawaiian lifestyle. It is emerging as the go-to option for consumers seeking to experience easy-drinking, island-inspired taste.

As of May 2023, Kona’s beer variety included Big Wave Golden Ale, Longboard Island Lager, and Kona Light Blonde Ale. The brewer also offers Gold Cliff IPA, Hanalei Island IPA, Mai Time Light, Spiked Seltzers, Tropical Punch, Starfruit Lime, Strawberry Guava, and Passionfruit Orange Guava. Each option has a distinct style and flavor. [2]

Kona’s brand story revolves around family, perseverance, and high-quality beer brewed in the spirit of the Hawai’i culture. The May 2023 rebranding was part of AB InBev’s strategy to differentiate its global Kona brand from the Hawai’i branch.

In Dec 2023, the parent company launched the next iteration of Kona’s “Bring the Aloha” initiative. The “Share the Big Waves” campaign seeks to unite surfers by unpacking perceptions around surf culture through a new California-based activation.

The initiative included a short video interview between professional surfer Hunter Jones and surfers of multiple skill levels in San Clemente, California. But who owns Kona Brewing? [3]

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Who is Kona’s Parent Company?

Kona Brewing has a unique ownership structure. In 2020, AB InBev acquired Kona’s parent company Craft Brewers Alliance. AB InBev split the brand into Kona Brewing Hawaii and Kona Brewing Co. (Kona Big Wave) for international markets.

AB InBev owns Kona’s rights outside Hawaii, while PV Brewing Partners operates Kona Brewing Hawaii. The two brewers operate separately but sell the same beer variety. With the May 2023 rebranding, Kona Big Wave seeks to differentiate itself from Kona Brewing Hawaii and expand its global reach without losing the Aloha spirit. [4]

AB InBev’s beer market in Hawaii would have increased to 41% after acquiring Kona Brewing and stifled competition. The DOJ filed an antitrust complaint requiring AB InBev to sell Kona’s Hawaii business to a competitor.

In Jun 2020, CBA sold Kona Hawaii to PV Brewing Partners. AB InBev acquired the rights to the Kona brand outside Hawaii. The deal closed in Oct 2020, creating two Kona breweries. Kona Hawaii brews only in Hawaii, while Kona Big Wave produces its beers in Oregon, New Hampshire, Tennessee, and Washington. [5]

Kona Big Wave’s parent company, AB InBev, is the world’s largest brewer. AB InBev is a firm specializing in multinational drink and brewing based in Leuven, Belgium, and founded in 2008 after InBev acquired Anheuser-Busch.

In 2022, AB InBev produced around 518 million hectoliters of beer, the world’s largest beer production volume. The parent company owns over 500 global and local brands, including Kona Big Wave, Budweiser, Corona, and Stella Artois. In 2023, AB InBev had 40.4% of the US beer market share and a 27.4% share worldwide. [6]

Image Credit Joaquin Romero — Image Credit: Joaquin Romero

Kona’s Ownership History

Cameron Healy and his son, Spoon Khalsa established Kona Brewing in 1994 as a family-oriented brewery. The company opened its Kailua-Kona Pub on Hawaii’s Big Island in Nov 1998 and the second launched five years later at the Koko Marina Center in Hawaii Kai on Oahu.

In Jul 2008, Kona Brewing unveiled its third restaurant and first franchise at Honolulu International Airport. This location featured Kona’s brews and pub menu items. In Aug 2010, Craft Brewers Alliance (CBA) acquired Kona Brewing for $13.9 million after a nine-year partnership. Kona became a wholly owned CBA subsidiary. [7]

Kona leveraged CBA’s distribution network to expand its brand and market reach. The brewer commissioned a new facility in 2015 in Kailua-Kona. However, Kona’s ownership changed before the manufacturing plant was completed.

In 2020, AB InBev acquired Kona’s parent company Craft Brew Alliance. The deal transferred Kona’s rights in 49 states and internationally to AB InBev. [8]

The US Department of Justice ruled that AB InBev’s acquisition of CBA and Kona would create too much consolidation in Hawaii. The department demanded that ABI spin off the Kona brewery before they’d approve the deal.

This ruling created two separate businesses selling the same beer. AB InBev took over Kona Brewing outside Hawaii, while the Hawai’i branch of Kona was spun off and sold to PV Brewing Partners. [9]

Kona Big Wave and Kona Brewing Hawaii operate separately. One brewery serves Hawaii, while the other caters to consumers outside Hawaii. In Mar 2022, Kona Brewing Hawaii opened its new 30,000-square-foot brewery in Kailua-Kona.

The company announced that the facility is operational and ready for tours. AB InBev seeks to elevate Kona Big Wave from the craft category into the premium beer space. [10]

Kona Shareholder Structure

Anheuser-Busch InBev is a public company listed on the Euronext Brussels. It has secondary listings on the Mexico City Stock Exchange, Johannesburg Stock Exchange, and NYSE. As of Dec 2023, AB InBev had 2,019,241,973 outstanding shares and 1,737,197,263 outstanding ordinary shares.

The general public owns 43.55% free-float shares, followed by BRC and Stitching AK Netherlands at 33.42%, and EPS Luxembourg at 6.75%. Its ordinary shares represented 86.03% of the capital versus 13.97% locked-in restricted shares. [11]

Kona Big Wave is a wholly owned AB InBev brand. So, Kona is susceptible to investors’ lack of confidence in its parent company.

In Mar 2024, Marlboro maker Altria announced its plan to sell 35 million AB InBev shares worth $2.26 billion. Altria owned about 197 million shares or a 10% stake in AB InBev. The move came after AB InBev’s 2023 backlash from a US Bud Light ad campaign. AB InBev agreed to repurchase $200 million of ordinary shares directly from Altria. [12]

PV Brewing Partners is a Delaware limited liability company based in Overland Park, Kansas. According to the US DOJ, the entity was formed by private equity firm VantEdge Partners LP.

The founders are part of a group of Kansas City investors, including a former A-B exec, a Bain Capital exec, and a financial advisor. They own Kona Brewing Hawaii. [13]

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