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Anheuser-Busch InBev plans $250bn deal for SABMiller

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The Guardian: Anheuser-Busch InBev plans $250bn deal for SABMiller

The Guardian said:
Anheuser-Busch InBev, the owner of Budweiser and Stella Artois, has approached rival SABMiller about a takeover that could create one of the world’s biggest companies.

SABMiller revealed in a stock market statement that AB InBev had informed the drinks company it intends to make a takeover proposal, although no bid has yet been received.

Shares in SABMiller soared by more than 22% following the announcement, while AB InBev rose 11%.

The brewery industry has been awash with speculation about a major deal and City sources have long touted the prospect of AB InBev and SABMiller combining.

I can't see this getting regulatory approval if it moves forward.
 
Bud and Miller Light combine, to create the world's leading piss water...
I for One hold no loves for bere, but god this gaffer is right..
The involved companies produce Beers that i rank extremely low..
How do manage to stay afloat? Is there such a massive amount of people that just want some cheap booze?
I'm more of a lagavulin, remy martin xo, jhonnie walker (depending on labels) guy..
Want a drink? Take a classy drink, but ultimately getting drunk on piss water seems like a nonsensical choice to me..
 
So all the major domestics would be under one brand then?

Coors, Bud, and Miller? Crazy.

This is a big reason why I can't see this getting approved.

DOJ has been pretty smart about blocking egregious mergers like this.

EDIT: Upon further research, Coors doesn't technically fall under SABMiller; it's still its own company. MillerCoors is just a joint marketing venture.
 

Yaboosh

Super Sleuth
So all the major domestics would be under one brand then?

Coors, Bud, and Miller? Crazy.


Coors and Miller aren't really one brand. They have a partnership in the US, but are still technically two separate companies, SABMiller and MolsonCoors.
 

ahoyhoy

Unconfirmed Member
Only ever touch their beers at concerts or other venues where good stuff is prohibitively expensive (though Stella is pretty decent)
 
I for One hold no loves for bere, but god this gaffer is right..
The involved companies produce Beers that i rank extremely low..
How do manage to stay afloat? Is there such a massive amount of people that just want some cheap booze?
I'm more of a lagavulin, remy martin xo, jhonnie walker (depending on labels) guy..
Want a drink? Take a classy drink, but ultimately getting drunk on piss water seems like a nonsensical choice to me..

If the end result is the same, why would you spend the extra money on "classy" drinks that cost twice as much? Yeah, I really wonder why people spend $15-17 on a 24 can case of Miller/Bud/Coors instead of $9-14 for a 6 pack of whatever craft/specialty beer that tastes marginally better.
 

Goro Majima

Kitty Genovese Member
This is a big reason why I can't see this getting approved.

DOJ has been pretty smart about blocking egregious mergers like this.

EDIT: Upon further research, Coors doesn't technically fall under SABMiller; it's still its own company. MillerCoors is just a joint marketing venture.

Coors and Miller aren't really one brand. They have a partnership in the US, but are still technically two separate companies, SABMiller and MolsonCoors.

Have to think that the MillerCoors combination would have to be unwound somehow before Bud could acquire Miller. It'd be absolutely nuts to have essentially one major beer manufacturer in the U.S. The next two largest are Sam Adams and Yuengling supposedly both of which are the same size (and Yuengling is only regional!).
 

Amory

Member
Contrary to popular belief, bud and miller beers aren't actually poison

Are they my favorite? No, but they're fine and there's a time and place for them
 

Busty

Banned
Does this mean that Coors is the 'Luke Skywalker' of beers fighting back against the all consuming Budweiser empire?












Yes. And it makes Bud Light Darth Vader. Think about it.
 

Sanjuro

Member
I think anyone interested in this topic should check out the film Beer Wars. Pretty interesting. Maybe we are due for a sequel!
 

tapedeck

Do I win a prize for talking about my penis on the Internet???
So basically 80% of 'craft beers' would be owned by one company. Cool.
 

Cagey

Banned
Does this mean that Coors is the 'Luke Skywalker' of beers fighting back against the all consuming Budweiser empire?












Yes. And it makes Bud Light Darth Vader. Think about it.
EDIT: Correction, MillerCoors is the joint venture.
 
Honestly, the big guys merging is preferable to them continuing to snap up all the small players.

Not that the merger will curtail that, though.
 

BigDug13

Member
The beers themselves aren't the problem, it's the highly lobbied laws that are in place that give distribution control to the major companies that will now fall under one roof. It will cause further impediment in the distribution of better beers by smaller makers.
 

Amory

Member
The beers themselves aren't the problem, it's the highly lobbied laws that are in place that give distribution control to the major companies that will now fall under one roof. It will cause further impediment in the distribution of better beers by smaller makers.

Further impediment? I'll admit I'm pretty naive in the beer distribution world, but there's a much, much larger selection of craft beers in every liquor store I go into than there was 5 or 10 years ago.
 
The beers themselves aren't the problem, it's the highly lobbied laws that are in place that give distribution control to the major companies that will now fall under one roof. It will cause further impediment in the distribution of better beers by smaller makers.
This is the big problem.

Further impediment? I'll admit I'm pretty naive in the beer distribution world, but there's a much, much larger selection of craft beers in every liquor store I go into than there was 5 or 10 years ago.
Because there are more breweries possibly. But distribution is tough depending on the state.
 

siddhu33

Member
Three posts for the first beer snobs to arrive. Not bad.

And I would be surprised if this went through. That would be one hell of big company if it did

Don't get me wrong, I'm no beer snob...Just because it was made in a microbrewery in someone's basement in a bathtub does not make it taste any good!

Doesn't take away from the fact that light beer isn't that great either lol.
 
If the end result is the same, why would you spend the extra money on "classy" drinks that cost twice as much? Yeah, I really wonder why people spend $15-17 on a 24 can case of Miller/Bud/Coors instead of $9-14 for a 6 pack of whatever craft/specialty beer that tastes marginally better.

I know right. Everyone should just drink malt liquor.
 
Why wouldn't this get regulatory approval?

There is more competition now in the beer industry than there ever has been, at any time, in world history, and InBev and SABMiller are forgotten in terms of the beer-drinking zeitgheist. They may still ship the most beer by volume in North America and abroad, but they've fallen more in the last 15 years than almost any dominant brands in America.

So basically 80% of 'craft beers' would be owned by one company. Cool.

Two things... Where does that 80% come from? But, beyond that, it must be by volume sold and not actual variety, and also, it must be a very loose definition of 'craft beer.' Leinenkugels and Shock Top, both owned by Miller SAB or InBev, might advertise themselves as craft beer, but it's a very loose definition that basically means "not an extra pale light American lager."
 
If the end result is the same, why would you spend the extra money on "classy" drinks that cost twice as much? Yeah, I really wonder why people spend $15-17 on a 24 can case of Miller/Bud/Coors instead of $9-14 for a 6 pack of whatever craft/specialty beer that tastes marginally better.

It's not "marginally" better, that's why.

Also process, not destination.
 

belvedere

Junior Butler
There's a time for quality and a time for quantity gentlemen. I'm not taking 30 barrel aged stouts or DIPAs on a float trip.
 
If the end result is the same, why would you spend the extra money on "classy" drinks that cost twice as much? Yeah, I really wonder why people spend $15-17 on a 24 can case of Miller/Bud/Coors instead of $9-14 for a 6 pack of whatever craft/specialty beer that tastes marginally better.

Yeah, good point, I mean, this is one of the reasons why I don't understand why people don't eat anything but McDonalds. I mean, why go to an EXPENSIVE, fancy, cloth napkin restaurant like Applebees or TGI Fridays, when you can just eat McDonalds' dollar menu. You're spending $3 instead of $10 and the end result, eating food, is still the same. And don't even get me started on the REAL fancy places like Chipotle and The Cheese Cake Factory... By god I wish I were born with a silver spoon in my mouth!

There's a time for quality and a time for quantity gentlemen. I'm not taking 30 barrel aged stouts or DIPAs on a float trip.

Craft beer or quality beer does not mean strong beer.
 
Why wouldn't this get regulatory approval?

There is more competition now in the beer industry than there ever has been, at any time, in world history, and InBev and SABMiller are forgotten in terms of the beer-drinking zeitgheist. They may still ship the most beer by volume in North America and abroad, but they've fallen more in the last 15 years than almost any dominant brands in America.
"

There is more competition but distribution has not seen the level of deregulation that is needed.
 
Yeah, good point, I mean, this is one of the reasons why I don't understand why people don't eat anything but McDonalds. I mean, why go to an EXPENSIVE, fancy, cloth napkin restaurant like Applebees or TGI Fridays, when you can just eat McDonalds' dollar menu. You're spending $3 instead of $10 and the end result, eating food, is still the same. And don't even get me started on the REAL fancy places like Chipotle and The Cheese Cake Factory... By god I wish I were born with a silver spoon in my mouth!

If you go out with friends and someone orders a Narragansett or something do you get really mad at them and whine for an hour about how they should've had a Prima Pils.
 

tapedeck

Do I win a prize for talking about my penis on the Internet???
Two things... Where does that 80% come from? But, beyond that, it must be by volume sold and not actual variety, and also, it must be a very loose definition of 'craft beer.' Leinenkugels and Shock Top, both owned by Miller SAB or InBev, might advertise themselves as craft beer, but it's a very loose definition that basically means "not an extra pale light American lager."
I was exaggerating with the 80%, there's thousands of official craft breweries but I'm speaking dollars and retailer floor space. I work for Wirtz Bev based out of Illinois (mostly wine and spirits but we do distribute Ballast Point, DeScheutes, a few others) not sure how it is elsewhere but in my state easily over half the craft beers (and yes that's a loose definition) come off an AB truck or Miller truck...and these dominate sales from the pull through I personally see. Distribution laws very greatly by state but for me this merger would basically take over the entire beer industry in IL, including crafts because the influence/power of such an all incompasing distributor would be ridiculous...which is why I think it won't happen anyway.
 

daveo42

Banned
I'm fine with all shit beer being under the same roof, but the lack of sizable competition in the American Beer market at this point makes me think this won't actually go through. I mean, the only competition left over for AB would be Sam Adams and a ton of microbrews that still only hold a small portion of US beer sales.
 

Yaboosh

Super Sleuth
This is a big reason why I can't see this getting approved.

DOJ has been pretty smart about blocking egregious mergers like this.

EDIT: Upon further research, Coors doesn't technically fall under SABMiller; it's still its own company. MillerCoors is just a joint marketing venture.


It is more than a joint marketing venture, they use each other's breweries as well.
 
I for One hold no loves for bere, but god this gaffer is right..
The involved companies produce Beers that i rank extremely low..
How do manage to stay afloat? Is there such a massive amount of people that just want some cheap booze?
I'm more of a lagavulin, remy martin xo, jhonnie walker (depending on labels) guy..
Want a drink? Take a classy drink, but ultimately getting drunk on piss water seems like a nonsensical choice to me..

The vocal minorities will always be baffled at why anyone would choose to drink an adjunct lager. Meanwhile, these companies didn't put themselves in a position of merging into one of the largest entities on the planet by not selling beer, so it seems like they're doing alright.
 

Kill3r7

Member
I don't see this takeover happening. From a regulatory perspective, AB would be creating a monopoly. They would effectively control 75% of the US beer market and have virtually absolute control over distribution. Also, when you consider that the big 3 have been slowly buying up smaller craft breweries you can see that this is a really bad idea. Bud light alone is 3 times larger than the entire craft beer sector.

http://www.bloomberg.com/news/artic...-giants-push-craft-beer-bud-and-miller-suffer
 
If you go out with friends and someone orders a Narragansett or something do you get really mad at them and whine for an hour about how they should've had a Prima Pils.

Sorry, I was responding to the idiocy that the only reason to drink beer is to get drunk and so therefore you should drink the cheapest beer, which is what that first person said and I was arguing against.

You agree with him?

FWIW, no, I don't argue against anybody for drinking whatever they want, and I don't judge anybody for drinking whatever they want. But if they tell me that I only drink to get drunk and that there's no other reason to drink beer, I'll think they're idiots and mock them online with a McDonalds analogy.

(I'm not a beer snob, I like Narragansett, but I'd probably choose Victory Prima Pils over it regardless, and I'd choose Notch Session Pils over both... Don't care if somebody else wants to drink something else, though)

I was exaggerating with the 80%, there's thousands of official craft breweries but I'm speaking dollars and retailer floor space. I work for Wirtz Bev based out of Illinois (mostly wine and spirits but we do distribute Ballast Point, DeScheutes, a few others) not sure how it is elsewhere but in my state easily over half the craft beers (and yes that's a loose definition) come off an AB truck or Miller truck...and these dominate sales from the pull through I personally see. Distribution laws very greatly by state but for me this merger would basically take over the entire beer industry in IL, including crafts because the influence/power of such an all incompasing distributor would be ridiculous...which is why I think it won't happen anyway.

I live in Massachusetts, which has liquor and package stores, largely as a response to the old fashioned BLue Laws that banned beer/wine/liquor sales in Super Markets. While it's inconvenient to not be able to buy beer in a supermarket, the benefit is that our liquor stores have a hug variety of beer. The two I largely go to have their main sections for the major American light lagers, but the shelf space is split pretty evenly with crafts.

Where it definitely does lack is in cold beer storage at liquor stores.

But even with shelf space being dominated by Miller or inBev, I don't see it as that much of a problem because the craft beer industry has exploded in the last 10 years, inspite of everything that Miller/InBev/Etc have done in the light lager market.
 
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