Perhaps a collection of clueless hipster doofuses could pool together their trust funds...
MILWAUKEE Pabst Brewing Co., owner of Pabst Blue Ribbon, Schlitz and other old-line beer brands, is on the sale block again.
Pabst's owner, the Kalmanovitz Charitable Foundation, based in Mill Valley, Calif., has hired Bank of America Merrill Lynch to find a buyer willing to pay around $300 million, according to the New York Post, which cited unnamed sources in a Monday article.
Executives at Pabst, based in suburban Chicago, and foundation officials didn't return phone calls seeking comment.
The sale effort is apparently the result of a deadline imposed by the Internal Revenue Service. Federal tax laws don't allow charitable foundations to own for-profit companies.
The IRS initially gave the foundation until 2005 to sell Pabst. That deadline was extended to 2010 when a buyer couldn't be found, according to a 2008 report by the Chicago Tribune.
Pabst, and its predecessor company, Best Brewing Co., was a Milwaukee mainstay for more than a century when it was acquired in 1985 by Paul Kalmanovitz. He bought other declining breweries, including Pearl and Falstaff, that were losing market share to growing giants Anheuser-Busch and Miller Brewing. Kalmanovitz died in 1987.
Pabst closed its Milwaukee brewery in 1996 and shuttered its last remaining brewery in 2001 after hiring Miller, now known as MillerCoors LLC, to brew its brands. Pabst in 2006 moved its offices from San Antonio, Texas, to Woodridge, Ill., where it has around 30 employees.
Because Pabst doesn't own breweries, it mainly operates as a marketing company, crafting strategies for selling dozens of brands, which also include Old Milwaukee, Stroh's and Heileman's Old Style.
In recent years, Pabst Blue Ribbon has seen revived sales when it was embraced by drinkers in their 20s, who see it as welcome contrast to heavily marketed beers.
Pabst Brewing also successfully relaunched Schlitz with its original formula from the '60s and announced it was bringing back "kraeusening," a process that uses additional fermentation, for Old Style.
Despite those efforts, Pabst Brewing's sales volume in 2008 dropped by 3.3 percent, to 5.9 million barrels from 6.1 million barrels, according to data compiled by Beer Marketer's Insights.
But that was a smaller drop than Pabst Brewing had seen in previous years. And it came as the company saw a big boost during the fourth quarter of 2008, with a 9 percent increase. That was fueled by a big jump in Pabst Blue Ribbon sales and higher Schlitz sales.
