Beer giants AB InBev and SABMiller in merger talks

[Cervantes]

Beer giants AB InBev and SABMiller in merger talks

 

[yankinoz]

The merger, rumoured for some time, would give Anheuser Inbev ownership of 58% of world beer trade, more than that if China is excluded, and including almost complete dominance in some markets such as Mexico. AIB has a history of aggressive marketing, including exclusivity contracts and crowding retail shelves with loss-taking beers aimed at craft markets, in efforts to exclude small brewers.

The merger probably won't trigger much action in Europe, where Heineken and other interests are still strong. In the US the merged company will probably be forced have to sell off MolsonCoors.

And Australia? SABMiller owns Carlton United. Together with Kirin (through Lion Nathan) they control the macrobreweries except Coopers and half the craft breweries. Kirin and AIB have a history of close cooperation in marketing.

AIB already owns many foreign brands sold in Austalia, including Corona, Becks, Stella Artois and Budwesier.

Not good news.

 

[Nizmoose]

Whilst all this macro business is somewhat concerning I genuinely believe that people have, or are at least starting to, wake up to the big corporate tactics and are starting to make buying decisions especially in the food and drink industry based on quality as opposed to price or convenience, I think in time the market share of the massive breweries will continue to decline as more and more people discover great beer.