Beverage Dynamics is the largest national business magazine devoted exclusively to the needs of off-premise beverage alcohol retailers, from single liquor stores to big box chains, through coverage of the latest trends in wine, beer and spirits.
Issue link: https://read.dmtmag.com/i/724527
BY JULIE JOHNSON BY JULIE JOHNSON A s the largest brewing industry deal in the world moves ahead, mergers and acquisition are making headlines. Beloved craft breweries are being sold, prompting either howls of outrage from their fans or cautious optimism, depend- ing on the identity of the buyer. Consumers wonder how their favorite brands might be affected, both in quality and availability; brewers fret about relationships with distributors; and retailers scramble to handle proliferating brands and extensions. The growth of craft beer is behind some, but not all, of these changes. To dispense with the biggest deal fi rst, the Department of Justice this summer has given its blessing to the $107-billion merger between Anheuser Busch InBev (ABI) and SABMiller, already the world's largest brewing companies, but with condi- tions. Signifi cantly, the new mega company will have to dispose of its MillerCoors brands in the United States, which will come under the ownership of Molson Coors. This means that, for the consumer who prefers mainstream beers, there won't be much change: domestically, the beer shelves will continue to be domi- nated by brands from familiar rivals ABI and MolsonCoors. Other conditions placed on the merger, however, are in place to address the concerns of smaller U.S. brewers and importers, alarmed in particular at ABI's power over the distribution net- work. The deal places some restraints on ABI's wholly owned distributorships and on incentives to independent distributors that might squeeze small brewers. ABI's acquisition of a number of craft breweries has sharpened the fear that small independents could lose out as former peers benefi t from the effi ciencies and clout of the ABI network. American Beer Beer Beer Beer Beer landscape THE CHANGING Mergers, Acquisitions, Buyouts and Partnerships www.beveragedynamics.com September/October 2016 • Beverage Dynamics 35 AMERICAN MADE AMERICAN