How about a beer merger without A-B?
FT Alphaville, the blog that broke the story of a possible Inbev offer for Anheuser-Busch, now says that things are pretty far along for Inbev’s Plan B: a merger with SABMiller instead.
The Financial Times blog reports this morning that SABMiller “has quietly indicated” that it would consider a bid of 15 pounds, or about $30, a share, which would value the London-based brewer at about $44 billion. The FT’s sources say, though, that Inbev’s first choice is still to buy A-B. And, it notes, SABMiller can’t talk formally until it completes its U.S. joint venture with MolsonCoors.
I can think of at least one complication for an Inbev-SABMiller combination: Inbev brands such as Beck’s and Stella Artois would lose access to A-B’s extensive U.S. distribution network, where they’re off to a successful start. A-B distributors are enjoying the additional volume, but Miller is A-B’s chief rival, and any sister brand of Miller would not be welcome in the A-B distribution family.
Jeremiah McWilliams’ story today indicates that there are possible problems with Inbev buying A-B, too. If you want to discuss the rampant beer-industry rumors, check out the live chat with Jeremiah at noon today.
(2 votes, average: 3.5 out of 5)
Loading ...
David Nicklaus has covered St. Louis business for more than 25 years. His column appears three days a week on the Post-Dispatch business page. 
I think In-Bev taking over SAB is the best thing that could ever happen to AB. Especially in the coming years of “Buy American” attitudes that will prevail.
As a beer consumer, I would be more concerned about all of this if the big brewers started buying up microbreweries they way they bought up smaller brewers in past decades. I much prefer paying $1 to $2 more per sixpack and getting beer that has more body and taste to it than mediocre lagers like Budweiser and Miller. And the fact that most of these microbrews are made by non-unionized American workers makes them taste better too.
I agree with Ted44, the large brewers forgot taste. I have not bought any of the “main” beers in years. Where I live, the local beers are so much better so any sell of A-B or SAB has no effect on me for now.
Inbev is just a bunch of bankers. They know squat about making beer. All they know is profit. Cut jobs and overhead. They don’t care about workers. I love BudLight. If they buy Bud., then I will switch to Corona becuz I like it anyway. Bud just won’t be the same if the company is sold. Ambev will find a way to cut cost and they will change the flavor somehow, someway. Just my 2 cents worth. Cheers
AB is somewhat responsible for this situation. The world businesses in all sectors have been going global for years. While AB grew their domestic market share they overlooked the changes taking place abroad and assumed, one would think, that being strong in the US was enough. When the Japanese and Europeans came into the American beer market years ago, that should have kick-started them to investigate opportunities overseas; they waited much too long. Now they find themselves in a defensive mode.
With their financial strengths, distribution knowhow, technology, etc., it may not be too late to counter attack. Unfortunately, the timing is not the best as the financial markets to support them are in disarray and the US dollar is at its weakest point. We can only hope the management and directors will wake up and come up with something to avoid being absorbed by foreign “financial” (not beverage)interests.
people from the U.S.A. and i know i am are sick of foreign companies buying up u. s. properties