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Beer superpowers AB InBev & SABMiller making sacrifices to try to get merger approval

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XiaNaphryz

LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
http://www.eater.com/2015/11/30/9818740/ab-inbev-selling-peroni-grolsch-sabmiller-beer-merger

International beer superpowers AB InBev and SABMiller will have to make some sacrifices in order to complete their massive $106 billion merger. The Guardian reports that AB InBev plans to sell off Italian beer brand Peroni and Dutch beer label Grolsch in order to appease EU competition regulators. Likewise, in the U.S. SABMiller is also preparing to sell its 58 percent stake in MillerCoors to Molson Coors for approximately $12 billion. The company could also give up Snow, a leading beer brand in China. Eater has reached out to AB InBev for comment on the situation.

The AB InBev-SABMiller deal is expected to be completed in 2016. AB InBev, whose portfolio includes Stella Artois and Budweiser, initially approached SABMiller with an offer due to SABMiller's strongholds in Latin America and Africa — regions AB InBev has yet to penetrate.

The resulting mega-conglomerate will control approximately 30 percent of the global beer market and nearly 75 percent of the American market.
 
So they're bailing on other foreign brands to get a near monopoly in America?

Not a terrible idea, things being what they are
 

Big-E

Member
Snow makes the most beer per volume in the world if I remember correctly. It is the worst beer imaginable.
 

JJD

Member
The AB InBev-SABMiller deal is expected to be completed in 2016. AB InBev, whose portfolio includes Stella Artois and Budweiser, initially approached SABMiller with an offer due to SABMiller's strongholds in Latin America and Africa — regions AB InBev has yet to penetrate.

What this doesn't make sense. AB InBev completely dominates the biggest beer market in LA, Brazil. In fact 3G Capital a brazilian private equity is their second biggest shareholder, and not only their CEO is a brazilian but Anheuser-Busch InBev success is largely due to adopting the MO of the late Ambev. Jorge Paulo Lemann is probably the most influential share holder of the whole company.
 

Link

The Autumn Wind
I don't care what they're giving up, this will not be good for consumers. Hope this merger gets denied.
 
So they're bailing on other foreign brands to get a near monopoly in America?

Not a terrible idea, things being what they are

Near monopoly? There are more successful brewers today than there ever have been in the history of American beer making. We're in a golden age of beer making, distributing, and drinking, and this won't have any affect on it.

I'm sure that Bud Light will dramatically change just like it did when people complained about the InBev & AB merger a few years back. In other words, almost nothing changed and the craft beer market continued its exponential, skyrocketing growth.

The problem is they've been buying up craft breweries, and I doubt that will slow down if they merge.



InBev/AB has bought ... 3 breweries since the merger that I can think of, Red Hook, Goose Island, and Kona, all of which were pretty huge macrobreweries at the time who were looking to expand. There are over 3,000 registered breweries in the United States, and more new breweries open every day than InBev/AB has bought since 2011.

BUt, yes, InBev/AB and Miller are expanding into more craft breweries and they should... Craft breweries can do something that InBev/Miller can't at the moment, and it's only good for beer drinkers that the major breweries expand what they offer.
 

neobiz

Member
It's not about how many breweries they can buy but more about the beer distribution monopoly they would have.

They already have a distro monopoly in the fact you can go anywhere and buy a bud. Merging with other beer you can buy everywhere isn't going to do shit.
 

SMattera

Member
It's not about how many breweries they can buy but more about the beer distribution monopoly they would have.

From a consumer perspective, the problem is really the government. Restrictions on how breweries can sell their beers and such severely restrict consumers' choices.
 
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