Aren’t there laws against monopolization? For when survival of the fittest one is less desirable than survival of the fittest several? I know nothing about this but seem to recall such a thing.
In the US, that is called antitrust. In Europe that is called competition law. I can’t see how this merger would be allowed to happen without divesting some major brands and some breweries in the US. I’m not sure how dominant the these companies are in other countries, but I believe Heineken is independent of these two, so I’m not sure what would happen in Europe and other parts of the world.
Distribution will be next in line for consolidation. Some will have to survive due to the 3 tier system in many states. I can see the day when all of today’s major distributors are reduced to one per major area. As far as I can tell Des Moines already only has 2 or 3. It has caused many problems from what I’ve heard for the craft brewers here. One major one being the restrictions on growler sales which technically have to go through the 3 tier system for customers to take them home. This may have been fixed but I haven’t checked in a long time.
At one time several breweries downtown couldn’t get any distributor to deal with them since the volume was too small to be worth the time. With only one in a given area it would be even worse.
I read a financial analysis of this deal today. Apparently, the domestic market is slipping away from them and they see Africa as a way to compensate for that. People there are moving from homebrewing (nothing like what we do!) into buying beer and by owning SAB they can capitalize in that.
Exactly…me too.
It has been a very long time since I’ve purchased a full sixpack of any commercial beer…BMC, “craft”, or otherwise.
I simply don’t need to.
Yep. I probably have more commercial beer than homebrew on hand at the moment. But none of it is of the BMC variety. The closest I guess would be SN Octoberfest.
It’s interesting they want to monopolize domestic beer when craft beer is the direction the 1st world is heading. If this deal goes through, they would be too large to acquire major craft companies.
Unless they are forecasting adjunct beer sales in up and coming markets of 2nd and 3rd world countries will be greater than craft beers in 1st world countries.
Me2. I haven’t bought a 6 pack of BMC in years. I did buy a 6 pack of Left Hand Stout a cpl wks ago. I couldn’t wait until “Stout Season”. But when I’m out at a bar or restaurant I choose local brewery offerings. There some good ones around here.