Bad news, cheap beer lovers. Your beloved PBR tallboy may soon disappear from the coolers behind pockmarked bars across the country.
Pabst is taking MillerCoors to court in a trial that began Monday, November 11. Pabst alleges that MillerCoors is attempting to put it out of business by ending a long-running partnership in which MillerCoors brews Pabst's beers, the Associated Press reports. The big beer company has brewed Pabst brands, including Lone Star, Pabst Blue Ribbon, and Old Milwaukee, since 1999.
That practice is called contract brewing. One company contracts with another to brew, package, and ship its beers. Pabst's lawyers contend the company has no way to brew its beers outside of its partnership with MillerCoors, which is slated to end in 2020. The only other company with the capacity to handle Pabst's needs is Anheuser-Busch, which does not do contract brewing, according to the AP.
The conflict arises because the companies differ on how they believe the possible five-year extensions should be negotiated. Pabst claims it has "stunning documents" that prove MillerCoors wants to "get rid" of its brand to gain a larger hold of the cheap beer market and that the proposed rate hike for a contract extension is "a commercially devastating, near-triple price increase."
For its part, MillerCoors says it is not required to brew Pabst beers after the end of the contract in 2020 and that Pabst won't pay enough to justify an extension of that contract. The details of the back and forth get deep into the weeds, but the outcome of the case could result in the disappearance of Pabst brands, including PBR, should MillerCoors stop producing Pabst beers. It won't spell the end of cheap beer, but you may have to say goodbye to the only liquid you drank through your four years of undergraduate studies.
h/t Associated Press/The Takeout