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07.11.2008 9:31 am

Time to mend fences with Brito

St. Louis Post-Dispatch
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Various media outlets — the New York Times, Wall Street Journal and Bloomberg, to name a few — are reporting that merger negotiations have begun between InBev and Anheuser-Busch, with InBev apparently willing to raise its offer to $70 a share. If that’s really the price, A-B’s board probably won’t be able to keep saying no.

One quick thought: Now might be a good time for Gov. Matt Blunt, Mayor Francis Slay, Sen. Claire McCaskill, Sen. Kit Bond and others to begin backing off of the harsh anti-merger comments they made to InBev CEO Carlos Brito. If he’s going to be the CEO of a major employer in our town, it would be nice to have him think we’re a forward-thinking kind of place.

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36 comments

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Amen to stopping the negative talk by the politians. Mayor Slay last night on Fox 2 seemed resigned to the buyout. I am not sure, other than grandstanding, what they thought they were going to accomplish they knew from the beginning they couldn’t stop it.
Like I have said before it is time to break out the lip balm and start kissing up.
Expect Inbev to come with their hands out and want tax relief from the city and state to stay here. Inbev will not be fond of paying the city earnings tax on their revenue and I am sure other cities would love to have the several thousand North American jobs that will remain and will gladly offer tons of tax breaks to get them to move.

— kdunlap
9:41 am July 11th, 2008

I’m curious how the extra $5 solves the Cuban issues AB raised recently. Were those just a smokescreen or will Inbev divest itself of the Cuban business? I heard some stories that Inbev could pass the Cuban business off to Modelo until Cuba opens up.

— Rick
1:17 pm July 11th, 2008

Sam Adams for now on! Whoopee!! Good Luck Guys! You are going to need it!

— Guy
2:35 pm July 11th, 2008

Slay should be on the phone with Brito right now to invite him to the August Boyz II Men concert at Live Off the Levee. That will show Brito what a world-class town St. Louis is. It would also give the numerous self-interested organizations and factions in St. Louis an opportunity to shake down Brito at the earliest possible moment.

For her part, McCaskill should be trying to arrange free nursing home care for Brito’s family. As for Bond, well maybe he has some cigarette butts to offer.

— True Insight
2:49 pm July 11th, 2008

In my way of thinking, if AB sells out (even if friendly) fine. Good riddance! I would prefer they go ahead and move out of town. And don’t let the door them on the way out. I WILL NOT ever buy another beer from AB or InBev and you can take that to the bank.I’ll buy Schlafly beer.

— Eric
2:52 pm July 11th, 2008

The rest of you can take your submissive poses if you like. Brito won’t be a boon to this town no matter how much you beg. I’ll switch to Schlafly, Sam Adams, and whichever microbrews get launched from AB employees who choose not to be employed by InBev.

— Fyten
2:53 pm July 11th, 2008

You guys need to get off the emotional rants and think this thing through. The deal is most likely to happen and the best thing we can do is as dave nicklaus said–back off the harsh rhetoric, put our best foot forward and try to work with InBev. I don’t think this is a “submissive pose”. It is just being realistic and in the best interest of the employees and St.Louis. don’t worry about what damned beer you are or aren’t going to drink. think about the big picture.

— steve
3:29 pm July 11th, 2008

Rick–The Cuban comments were a smokescreen. Why else can InBev already sell beer in both the US and in Cuba? What InBev cannot do is move their overall HQ to the US and retain the Cuban business; companies based in the US must abide by the government’s embargo against Cuba.

— Paul
3:33 pm July 11th, 2008

Paul is right. I work for a company that has a Canadian subsidiary. They trade with Cuba on a regular basis. It is a whole different subject, but the law prohibiting trade with cuba is just plain stupid. it has been around for 40 plus years, hasn’t accomplished didley except keep u.s. companies from trading with cuba. the canadians and europeans just fill the void.

— steve
3:42 pm July 11th, 2008

Mr. Brito is a business man who will make his decision based on what the numbers tell him is best. Make no mistake, he will extort the local and state governments for tax breaks and other incentives to keep jobs in St. Louis. Truly, he doesn’t give a damn what we think. Handshakes and warm smiles won’t keep the jobs here. Conversely, I am not saying he should be treated like dirt. That won’t change anything either. It’s just the idea of people acting meek in front of this man turns my stomach.

Call me provincial if you like, but I try to support American and local products as much as I can. I buy Energizer batteries, not Duracell. I’ve bought Ford and GM cars, not Toyotas. Someone correct me if I’m wrong, but Sam Adams will be the largest American brewer after this takes place and Schlafly is made by St. Louis Brewery.

— Fyten
3:47 pm July 11th, 2008

fyten, i don’t think anyone is being meek or thinking that a smile and a handshake are all we need. sure he is a businessman, and by all accounts, a pretty good one. we need to be professional and cool headed and open a dialogue with him so that he understands the local culture. i don’t think he is stupid enough to break his new toy on christmas day. our movers and shakers have to help him see the benefits our area has to offer and the importance of being a good corporate citizen. If it doesn’t work, then at least we can say we tried.

— steve
3:58 pm July 11th, 2008

Fyten, you don’t think Brito can be swayed by Boyz II Men?

— True Insight
3:58 pm July 11th, 2008

Fyten,
After the deal is signed sealed and delivered Sam Adams will be the largest American owned beer company. I wonder if they have the extra capacity to keep up with demand?

— Ken
4:24 pm July 11th, 2008

Steve, I’m not worried about what damned beer I’m going to drink. What the hell does that mean anyway? I don’t drink Bud products because they are the best tasting beer, because obviously, they are not. I drank it because it WAS, and I say WAS - America’s Lager. I drank it because of its storied tradition with the late great Auggie Busch and the Cardinals. I drank it because it has alcohol in it. I don’t live in the St. Louis region and I’m free to buy whatever beer I want. And I will never buy another Bud product ever again - end of story. People don’t understand that the poison pill to Budweiser was in its advertising. I know the products InBev makes and will never buy one of their products either. There are consequences to business deals like this. Life goes on and Sam Adams and microbrews will get my business.

— Guy
4:37 pm July 11th, 2008

This is how I see it going if the merger goes through… 1. Sells off the Theme Parks asap and maybe the Metal Container Corp division. 2. Then after about a year of letting the dust settle, you’ll see a few brewery workers go (but not many). 3. Most of the Marketing and Legal staff will be fired 4. Half of the middle and upper management will be replaced or consolidated, and most of IT employees and contractors downtown and in Sunset Hills will be let go. InBev’s has its own IT people so what do they need with AB’s except a few who will be around just long enough to pass on thier knowedge.
On the other side, who says AB has to be bought out because board is meeting with InBev? The board has to! Because otherwise they aren’t “looking after the best interests of the Stockholders”.
I don’t believe for one moment that August Busch IV wants to lose this company. And I for one hope that he fights for his family’s legacy.

— AB Contractor
4:44 pm July 11th, 2008

There have been talks that Sam Adams will be sold to SAB Miller in the next 8-10 months. I say the deal will be done probably by next week for AB and at $70 per share, how could they pass that up. AB as it stands now would never get to $70 per share.

— Mark
5:27 pm July 11th, 2008

Guy, you made my point clear. this isn’t about drinking beer or what brand you drink. what this is about is making the best deal for ab employees and stl. yikes!! stifle as archie used to say

— steve
5:58 pm July 11th, 2008

After more than 25 years of delivering Bud,I retired last year.My union pension is nothing to brag about.I invested in Bud stock every week,from my paycheck. Now I have a chance to make it pay off.What fool in my shoes would not cash it in for a good price? Why else buy stock in the first place?. This can make up for some of the times the union workers were underpaid when the All American company squeezed us for every penny and told us how lucky we were.

— Don
6:19 pm July 11th, 2008

Time for St. Louis to start thinking globally and stop being so close minded. The current management couldn’t get it done. If youre not moving forward on wall street you won’t survive. AB has been screwing it up for 2 decades. They were endangering the future of workers by not improving the ROI for investors for a long time. Put the blame where it belongs…maybe this new group can actually GROW the company.

— St. Louisian
6:37 pm July 11th, 2008

I’m all about NOT kissing Brito’s hand. He’ll move the headquarters in a few years no matter what anybody says or the amount of kissing they do. I will also join in not drinking another bud product either.

— gary
6:38 pm July 11th, 2008

As an employee, I just hope I can follow through with my assigned weekly pushups Carlos’ boys will implement for problem employees.

— Tom
7:38 pm July 11th, 2008

You better think twice if you think I’m going to turn around and kiss up to Brito. As St. Louisans, we’ve been here before, we know what the outcome is going to be, it’s just a question of time. I’d still like to see Auggie 4 stick to his ‘not on my watch’ comments and at the very least go down swinging, but it’s not looking too good. No, Mr. Brito, you are not going to get a dime from me. End of story. I would advise everyone else to do the same. There was once a time when a sense of the common good overran the value of money. Unfortunately, now everything has a price.

— Jeff
10:42 pm July 11th, 2008

Jeff..this is called Capitalism..now what’s more American than that?

— Don
5:16 pm July 12th, 2008

Just because they are talking, does not mean it is over. I am not ready to give up yet. I do not like what this man stands for and I do not like what he will do with this company. He always has and will remain a bully - and I for one, cannot wait for him to become too big for his ego and be taken down a notch or two - and I pray to God, that AB will be the company that can do it no matter how it looks right now.

— Lori G
5:39 pm July 12th, 2008

I can’t believe all of the ANTI INBEV on this blog. As an employee of AB I can’t say I am excited about this deal but I am realistic. Anheuser Busch is not a company that WANTS to sell, but with the offer on the table the shareholders will sell them up the river to capture the $70. Keep in mind this is a company that will support 12 plus U.S. cities with it’s breweries and 22,000 workers(minus 10 or 15%), assuming INBEV keeps their promises. Budweiser is still American’s beer and if that’s the product you prefer this should not change anything. By the way, Samuel Adams is contract brewed by SAB Miller (South African Breweries), it’s not America’s beer either.

— Keith K-Employee
9:19 pm July 12th, 2008

Caving in to a company like InBev would not be worth it at any cost to me. If the deal goes through I’ll never touch another A-B product. Their are still plenty of smaller American brewers.There will be no end to the selling off of America if we can’t stop this.

— Gary
9:29 pm July 12th, 2008

For somebody following these news across the pond, I am flabbergasted at the parrochial comments made in this blog.

AB failed as a multinational brewery, period… Yes, you might have the largest beer market in the World, but even that is dwarfed when you aggregate the European and Latin American markets that Inbev controls. In other words AB is just a local brewery being taken over by a real multinational.

As a European that had dealings with AB in the Continent I couldn’t believe my eyes at the level of arrogance and contempt that AB executives showed to the local European employees and contractors.

Should AB in St Louis deserve the same treatment from Inbev? No way… However if you are an AB employee and you find yourself with plenty of time in your hands I will be very worried right now…

— Across the pond...
6:22 am July 13th, 2008

You and your “one quick thought”. Hey, why not have all U.S. citizens simply cede the U.S. constitution over to the EU, Soviet U, China in the name of globalism. That’s what you support, right? Hmm, Mr. Nicklaus? How much hind would you have our public representatives kiss? Wake up America!

— B
9:44 am July 14th, 2008

True Insight - funny comment, I liked it.

There are still people in the “Talk of the Day” blog calling for government action. What, exactly, are politicians supposed to do? This is a free market system and this transaction is legal in every way. Remember, whenever your elected officials make the most noise about something that means they can do the least about it…

— Tim
9:54 am July 14th, 2008

Keith K, what are you doing posting here while on company time. Looks like that layoff lisst just got it’s first name…

— InBev IT Department
10:12 am July 14th, 2008

Blame free market capitalists and their wallet hardon. It’s time to boycott and drive the price of the stock down. It’s the only weapon left against Euro vampires and their Renfield enablers (David Nicklaus types). I, for one, will not drink another Inbev product, including Budweiser, and I urge readers to do the same. I can see it now, dead clydesdales with two distinct puncture wounds on the neck.

Boulevard and Schlafly for THIS St. Louis resident!

Thirsty? Drink your Sellout.

— Boycott
12:02 pm July 14th, 2008

I have to agree, this is not good for St. Louis. Every merger always starts off stating how wonderful this will be and low and behold 2-3 years later no it is not. Jobs are relocated, downsized and name brands are eliminated. I worked for Earthgrains, a spin off of AB bread division. It was acquired by Sara Lee…everything was suppose to remain as is but no one knew that in the contract that three years after the purchase everything would be relocated to Chicago. I feel for my children, the way American is going we are going to have nothing here in 20 years. Automotive industry is pretty much dead in the US, everything you purchase in the store is made in China (which has come to bite us in the ass here lately with all the recalls). It needs to stop - we are not going to be the BIG money maker for long. There will be nothing here except maybe hospitals that are seeing patients that have no insurance because of no jobs. I like several others will not purchase anymore AB product. It is sad that August let this happen - - boy his family has to be proud! I understand it will still be made here but like Toyota and Honda - you are giving money to companies over seas….taking away from US economy growth. Doesn’t help who we have in office either, bet everyone is kicking themselves in the a** for voting him in for another four years. Over a misguided war to make him and his little buddy Dick rich!! Americans are only to blame, you choose buy the way you vote and what you purchase.

— Amy
2:32 pm July 14th, 2008

Listen guys and girls,

The fact that a company was set in one place doesn’t mean it is actually from that particular location…

For example, did you know that AB was actually incorporated in Delaware?? Essentially AB is not from St. Louis, but from Delaware…

Going a bit forward into the ownership, these big companies might trade theor shares in New York, however you must also understand that big parts of the company are owned by trust funds, pension funds, banks and other institutional investors from other countries. In other words, AB was already foreign owned… (Barclays Capital, from Britain, was already one of its biggest shareholders)…

So what is left??? Management??? Well… If they were uncapable enough of creating enough shareholder value to keep away unwanted suitors, then they simply deserve to go and let the Belgian/Brazilians have a shot at it…

There is nothing wrong with foreigners working for big American endeavours… The american space program was ran by ex-Nazi scientists, the atomic bomb was devised by a European jew that escaped the rocket making Nazis…

Google was co-founded by a Russian…

Guys… stop draping yourself with the American flag… America was built and will be developed by immigrants and foreigners… (Even the Busches were foreigners to the US in their family history) Rejoice in that great American tradition…

— Across the pond...
4:52 pm July 14th, 2008

As a former May company employee who was laid off, be careful about getting your hopes up about INBEV’s presence in STL. Britto’s comments sound eerily similar to Terry Lundgren’s (Macy’s CEO) comments made to us when Macy’s bought May. I think massive job loses, especially mid-high level corporate jobs are coming. Not to be cynical but if you are in one of those jobs, get your resume ready and start looking before you hit the job markets with many of your co-workers with similar skill & experience.

— brad
5:57 pm July 14th, 2008

Sucks to be on the wrong end of the big stick, doesn’t it?

— mac
7:07 pm July 14th, 2008

I bet you know all about that, dont you cupcake? :P

— Tim
4:07 pm July 16th, 2008