Belgian beer-brewer InBev and Brazilian beverage-subsidiary AmBev are prepping a $46 billion offer for U.S. brewer Anheuser-Busch.
The InBev take-over, if successful, would create the world's largest beverage business by joining the world's No. 2, InBev, with the world's No. 4, Anheuser-Busch. The InBev offer spreads out to $65 per share.
If this deal goes down, the two beer brewers, combined with AmBev's South American soft-drink dominance, might permanently checkmate the coming U.S. partnership of SABMiller and Molson Coors, which will control nearly 30 percent of the $97 billion U.S. market. Anheuser-Busch maintains a 51 percent market share stateside.
To stave off InBev's bid, Anheuser-Busch is seeking to complete a partnership with Mexican brewing giant Grupo Modelo, in which it already has a 50 percent stake, to strengthen their North American No. 1 ranking.
InBev has warned the American beer giant against such a move citing concerns that any deal would lessen Anheuser-Busch's appeal and damage share-holder confidence.
With the successful incursion of independent craft-beer brewers in the U.S. marketplace, Anheuser-Busch has attempted to stay relevant. They've bought into Red Hook Ale and Widmer breweries in the Northwest and have invested millions in developing and expanding their award-winning Michelob line, adding Amberbock, Honey Lager and Oktoberfest Marzen beers to compete with the Molson Coors in-house developed Blue Moon Belgian White Ale brand, the best-selling beer in U.S. grocery stores.
At the same time Anheuser-Busch's largest distributor in the U.S. has broken the brewer's exclusive contract so independent craft-beer brewers can be stocked on its shelves. The high profit margins on niche beers justifies this radical move. Obviously, like dominoes falling, this ballsy move will be duplicated by more of Anheuser-Busch's exclusive distributors across the U.S. hoping to cash in on the niche-brewer market.
But it's going take a big deal to keep this merger from happening. After the Yahoo vs. Microsoft fiasco, and with a $65-per-share offer on the table, stockholders worldwide may be trigger happy in this beer-slinging shootout.
Warren Buffett and Busch family members are also stepping into the fray, urging a deal with InBev.
This is going to be huge somewhere down the line, regardless of whether InBev's offer succeeds or not. How would a merger of this magnitude affect sports worldwide? Anywhere in the world you can turn on a TV and see "Budweiser" plastered on anything that doesn't move...and yes, some that do, thank you Kasey Kahne. We suck that up here in the states.
How many Miller Lite drinkers choked on their foam when Kurt Busch stepped into the No. 2? Did you switch brands? No, you were loyal in the end, despite all of your griping.
Old-world beers are just as prominent in European motorsports—from the World Rally to Le Mans—and these fans are just as beer loyal as any Natty-Boh drinker in a Dundalk corner bar.
Did you catch sight of any beer cars in the Nationwide race in Mexico City? You better believe Tecate had a hood on the grid.
We've already glimpsed some minor beverage skirmishes in NASCAR's victory lane. Jimmie Johnson blocked the camera's view of a Coke product so that his Pepsi product could be better seen.
That's just a soft drink, and it's already gettin' ugly.
9 comments Last one added about 1 year ago — Leave a Comment
Tim Parent about 1 year ago
I'm just surprised that, in this politically correct world of ours, that no one has ever gone after beer and alcohol sponsorship, like they did with the tobacco companies. Should that happen, this battle may end meaning little.
That being said, good article! Sounds like there's a good fight comin'!
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L.J. Burgess about 1 year ago
As long as Scotch exists booze will be legal.
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mike zebco about 1 year ago
Blue Moon is a Coor's brand not AB.
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L.J. Burgess about 1 year ago
I gotta stop drinking Blue Moon while I write at 3 in the morning.
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Brewtopian about 1 year ago
I'd be interested in know what market this rogue distributor services.
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L.J. Burgess about 1 year ago
it's all over the web ya gotta dig but not really deep. should take you 5 minutes.
i have a first hand source in the rogue outfit and he asked me to keep him out of it.
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Brewtopian about 1 year ago
Rogue as in going against Anheuser-Busch not Rogue as in the Oregon brewer of fine craft beers.
I did a little search but wasn't able to come up with the actual name or location of the brewer.
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L.J. Burgess about 1 year ago
Nay, head south east, go BIG.
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L.J. Burgess about 1 year ago
It's no secret ... Ben. E. Keith Distributors ... Texas.
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