It’s not last call yet for PBR lovers, as beer giants settle brewing feud

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Nov. 29, 2018 / 5:04 PM GMT

By Alyssa Newcomb

It looks like it’s not last call yet for PBR lovers.

Brewery giants Pabst and MillerCoors settled a dispute on Wednesday after a trial in which the PBR maker claimed the larger company lied about its capacity to continue brewing Pabst beers, in an effort to force it out of business.

The brewing battle was settled as jurors were on their second day of deliberations after hearing the case over the past two weeks in Milwaukee County Circuit Court.

“The parties have amicably resolved all outstanding issues in the case,” Pabst said in a statement, noting that it will “continue to offer Pabst Blue Ribbon and the rest of our authentic, great tasting and affordable brews to all Americans for many, many years to come.”

Pabst’s lawsuit asked for $400 million in damages and for MillerCoors to work “in good faith” to help find a solution, even if the company no longer has enough capacity.

MillerCoors has been brewing Pabst’s legacy beers, including Pabst Blue Ribbon, Old Milwaukee, Lone Star, and Natty Boh, for the past two decades. A brewing agreement was set to expire in 2020, with two options to renew.

Pabst argued the survival of its business depended on the renewal of the brewing agreement and said MillerCoors was trying to get rid of the competition. MillerCoors, which has been facing declining brand volume in the U.S., said it has less capacity for brewing and is not obligated to renew the deal.

MillerCoors currently operates seven breweries in the United States, a number that has dwindled since it first signed its agreement with Pabst. The PBR maker said it relies on MillerCoors to brew 4 to 4.5 million barrels of beer each year.

In 2016, MillerCoors closed a 1.3 million square foot brewery in Eden, North Carolina, which had the capacity to brew more than 8.8 million barrels of beer per year. The company previously said it may have to close one location in California that has the capacity to brew 6 million barrels of beer per year.

Both companies declined to disclose the terms of the settlement, including whether MillerCoors would continue to brew Pabst beers.