Anheuser-Busch InBev could control over half of the US beer market soon

Discussion in 'Beer News' started by Todd, Jul 3, 2012.

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  1. Todd

    Todd Founder (13,254) Aug 23, 1996 Finland
    Staff Super Mod Pooh-Bah Society Trader

    And the biggest keeps on getting bigger ...
    According to the article, AB InBev controls 47.7% of the US market already. This deal would add another 6%, resulting in a single company controlling 53.7% of the US market.

    Read the rest from Time Business by Josh Sanburn:
    http://business.time.com/2012/07/03/one-company-will-soon-control-half-of-the-u-s-beer-market/

    Related links:
    Anheuser-Busch InBev buys Grupo Modelo for $20 billion (Bloomberg News)
    Anheuser-Busch InBev grabs hold of Corona (The St. Louis Post-Dispatch)
     
  2. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado

    FYI - I believe that the anti-trust laws require a 75% market share before even considering regulatory involvement. In addition, the law takes into account how the market share was obtained, i.e. fairly or unfairly. We all can weigh in with our opinion about AB-InBev's fairness in their business dealings, but alas, our votes won't count. Only the bureaurocrats in DC [and the lobbyists that pay them] votes count.
     
    movingglass likes this.
  3. Drewskis

    Drewskis Initiate (0) Jun 20, 2012 Louisiana

    Will continue to not purchase any of their products and keep supporting the microbeweries as long as I can. Why worry about shit you can't control. Good to know, though.
     
  4. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    The DoJ made Anheuser-Busch sell the American Brewing Co., of Miami, FL. over anti-trust violations back in the late 1950's when A-B had less than 10% of the US market (and less than 1/3 of Florida's), and they had to get DoJ approval after that before buying any other brewery. The brewery itself, known for the "Regal" brand, was then purchased by National of Baltimore.

    More recently, InBev had to sell the rights to the Labatt brand in the US and stop brewing it for export here as part of the deal to allow them to buy A-B.

    Many other brewery deals have been knocked down over the years for similar reasons, most not even involving A-B (the US's largest since the mid-50's), like Schlitz-Heileman in the early '80's and the second Pabst-Heileman a few years later, and a rumored Stroh-Coors in the late '80's was dropped because of fear it wouldn't be approved by the DoJ.
     
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  5. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado

    Yes all true, but look at your timeline. Other than the InBev/A-B deal, all of your other examples are at least 20 years old. Times have changed and the government seems to be much less interested in curtailing business dealings, the Democrats lest they be criticized for being anti-business and the Republicans cause they are pro-business. It now appears as if InBev is going for lots of smaller brewers instead of one big one.
     
  6. totalbangover

    totalbangover Initiate (0) Jul 3, 2012 Michigan
    Trader

    So sad that Goose Island has been bought by this group.
     
  7. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    The Anti-Trust Division of the DoJ also investigated the joint venture/merger of Miller and Coors in the US by their parent co's (SABMiller and MolsonCoors) in 2008 before approving it, and that combination obviously was not going to be anywhere near the 75% market share figure you quoted as necessary "before even considering regulatory involvement".
     
    BBThunderbolt likes this.
  8. Jason

    Jason Founder (0) Aug 23, 1996 Massachusetts

    Q1 of 2008 AB had around 50.9% share of the market ... this was lost due to many reasons, the biggest from the buyout. Now they are simply trying to regain those numbers through buyouts. A plan that will fail them in the end IMO.
     
    cavedave and Centennial like this.
  9. otispdriftwood

    otispdriftwood Initiate (0) Dec 9, 2011 Colorado

  10. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    Nah, if AB-InBev gains more market share in the US (even if they're claiming that they'll have "no control" over the Modelo brands in the US since they're selling the other half of Crown to co-owner Constellation as a way to avoid DoJ Anti-Trust concerns), then we all lose.

    Hey, I agree that the DoJ's Anti-Trust moves in the brewing industry over the years has been confusing and, more importantly, pretty ineffective. (Huh, they didn't let Pabst buy Blatz? They didn't let Heileman buy Schlitz? WTF difference would those deals have made?)

    Some brewery historians suggest that preventing A-B from buying other brewers and breweries is what HELPED them maintain their #1 spot and then grow their share of the market large enough to be out of the range of any other brewer at this point.

    While most of the other big national breweries (Schlitz, Heileman, Falstaff, Pabst, Carling-National, Stroh, etc) "grew" by buying inefficient 19th century era, often urban, breweries, A-B wound up with a chain of nice new shiny, automated super-efficient "green field" breweries because they were forced to built, not buy. They were selling their beer for "premium" prices while their competitors were trying to compete by underselling them. All the while AB's total cost per barrel was probably much less than the "cheap beer" brewers'.
     
  11. DrunkenMonk

    DrunkenMonk Initiate (0) Jun 2, 2012 California

    If they're based in Belgium does that make them a foriegn business? That would seem to contradict the all-American image Macro beers like to promote.

    I love foriegn beer, but I feel like I support domestic jobs/economy when I buy from U.S. Craft/micro breweries.
     
    SortaAmbivalent likes this.
  12. davey101

    davey101 Initiate (0) Apr 14, 2009 Connecticut

    Well its still being brewed in the good 'ol U S of A by American workers.

    But the "muricaaaaa" image they market is kind of ironic.
     
  13. leedorham

    leedorham Initiate (0) Apr 27, 2006 Washington

    IIRC AB had at least some employee ownership and bragged about it on commercials. Anyone recall that or have any idea what percentage employee-owned they are?
     
  14. Giovannilucano

    Giovannilucano Maven (1,424) Feb 24, 2011 Pennsylvania

    From my point of view, this kind of shit makes me feel like being a human is shameful. That big companies have a greed disease, and over look beer: the passion and pride of many countries in the world is reduced to greedy, sick men who gain a high or hard on for money!

    I am proud that I have the passion and humbleness for the love of beer, its tradition and all those who work hard to make it!
     
    pixieskid, cavedave and gigaknight like this.
  15. jivex5k

    jivex5k Initiate (0) Apr 13, 2011 Florida

    I won't be supporting them.
    Vote with your wallet! Spread craft beer awareness!
     
  16. rlcoffey

    rlcoffey Initiate (0) Apr 20, 2004 Kentucky

    Toyota makes cars in my state made by American workers.

    I dont think anyone considers them American cars.
     
    squirrely2005 likes this.
  17. davey101

    davey101 Initiate (0) Apr 14, 2009 Connecticut

    That wasn't my point. My point was that when you buy their beer you are supporting the American work force.
     
    Brew33 likes this.
  18. jesskidden

    jesskidden Grand Pooh-Bah (3,071) Aug 10, 2005 New Jersey
    Pooh-Bah Society Trader

    Not really in this case, seeing as the thread is about AB-InBev buying Mexico's largest brewer, Grupo Modelo :wink:

    OTOH, can't get more American these days than Bass Ale and Beck's Bier (well, wait- sure you can...).
     
  19. Bitterbill

    Bitterbill Grand High Pooh-Bah (6,772) Sep 14, 2002 Wyoming
    Pooh-Bah Society

    Do you think you can convince people not to buy Goose Island beers? :rolling_eyes:
     
  20. MaineMike

    MaineMike Initiate (0) Jan 22, 2011 Maine

    Who cares? 50% of a market in which 90% of the product is crap that none of us drink. This wont change anything.
     
    Gash, brethartt and BrewCityBB like this.
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