Possible Anheuser-Busch InBev & SABMiller Merger

[Rasputin_Vol]

If you love good beer, lets hope this fails the anti-trust test. They'll just push the craft beers off the shelves and out of bars (at best) or try to buy up the more popular craft breweries (at worst). Beer distributors already have far too much power, but allowing these guys to stock bars and grocery shelves with Bud Lights/Miller Lites and shove this garbage down our throats is ridiculous.

Ankur Kapoor, an antitrust law specialist and partner at the Constantine Cannon law firm in New York, estimated that the combined firms theoretically could control 70% of the U.S. beer market, with the top three brands: Budweiser, Miller and Coors.

"You can just imagine what the reaction would be if GM, Ford and Chrysler tried to merge. This is not dissimilar," said Kapoor. "Without a divestiture, I think there's little or no chance for a deal."

He theorized the companies would try to counter antitrust concerns by contending that market conditions, including growing competition, have forced them to reduce beer prices for consumers in recent years. However, "given the size of these two companies, I don't think smaller competitors have been able to compete on price," said Kapoor.

One thing about this beer price argument. I can't speak for most here, but price is not a factor in my beer purchases. I would rather pay a little more for a good beer. But that is just me.

 

[PKT_VOL]

They have been losing their ass with my generation. Craft beer is the future.

If they start to sell off the micro breweries they have acquired in recent years to make the deal, it would be a long-term strategic mistake.

 

[SDV]

They have been losing their ass with my generation. Craft beer is the future.

If they start to sell off the micro breweries they have acquired in recent years to make the deal, it would be a long-term strategic mistake.

This

 

[Through_The_T]

They have been losing their ass with my generation. Craft beer is the future.

If they start to sell off the micro breweries they have acquired in recent years to make the deal, it would be a long-term strategic mistake.

This. Call me a beer-snob or whatever you like, but I can't stand the taste of mega-brewery beers. Craft is all I drink anymore.

 

[Orangesmokey]

This. Call me a beer-snob or whatever you like, but I can't stand the taste of mega-brewery beers. Craft is all I drink anymore.

I find it funny when people call me a beer snob because I don't like the taste of coors lite, miller lite or bud light. I'm a snob because I prefer a different taste? It makes me laugh.

 

[Orange Blazer]

I have worked in sales on the distributor and the brewery side for MillerCoors. Distributors margins are much greater on the craft beers and imports. We always pushed the crafts and imports more. The big domestics sell themselves.

 

[YankeeVol]

The big "domestic" beers suck anyway, except for beer pong purposes.

 

[Rasputin_Vol]

I have worked in sales on the distributor and the brewery side for MillerCoors. Distributors margins are much greater on the craft beers and imports. We always pushed the crafts and imports more. The big domestics sell themselves.

There was a documentary a few years back (Beer Wars) that painted the picture that distributors control a lot of what is on the shelves and served in the bars. My fear is that they will push out craft beers from restaurants/bars and make it more difficult to find craft beers.

 

[Coug]

Sorry, if you those two companies couldn't push out craft beers now they aren't going to do it merged.

 

[ButchPlz]

Sorry, if you those two companies couldn't push out craft beers now they aren't going to do it merged.

I'd think they could. With that much market share and having distributors (who have way too much control anyway) by the nuts, I don't think it would be hard. They don't give a flying fudge what the consumer wants anyway.

 

[Orange Blazer]

There was a documentary a few years back (Beer Wars) that painted the picture that distributors control a lot of what is on the shelves and served in the bars. My fear is that they will push out craft beers from restaurants/bars and make it more difficult to find craft beers.

As a distributor we pushed craft beers more because we made more off of those. You can make more off of 10 cases of craft beer than you can 30 cases of Bud Light.

 

[Orange Blazer]

I'd think they could. With that much market share and having distributors (who have way too much control anyway) by the nuts, I don't think it would be hard. They don't give a flying fudge what the consumer wants anyway.

Distributors absolutely care what the consumer wants. It makes no sense to push an account to buy a beer they can't sell.

 

[theutvolunteers]

As a distributor we pushed craft beers more because we made more off of those. You can make more off of 10 cases of craft beer than you can 30 cases of Bud Light.

Is that because they are jacking up the craft beer price?

 

[MSUDuo]

Give me BL, ML, CL all day man. I can't drink that craft stuff.

 

[tumscalcium]

After a couple all beer tastes the same to me.

 

[Orange Blazer]

Is that because they are jacking up the craft beer price?

No

 

[allvol123]

There was a documentary a few years back (Beer Wars) that painted the picture that distributors control a lot of what is on the shelves and served in the bars. My fear is that they will push out craft beers from restaurants/bars and make it more difficult to find craft beers.

I think your fears make no sense here.

A bar that sells just the big brands is going to be an empty bar.

 

[Obsessed]

Give me BL, ML, CL all day man. I can't drink that craft stuff.

This.

Those craft beers taste terrible to me.

 

[Rasputin_Vol]

I think your fears make no sense here.

A bar that sells just the big brands is going to be an empty bar.

Depends on where you live or where you frequent bars. If you are talking downtown Nashville or Chattanooga, then I would agree with you. If you are in smaller towns, the good ole boys want their bud light/mick light/coors light and they don't drink that fruity/flavored/high dollar stuff. Add to it that the distributors won't have much incentive to try to push or promote the off brands/craft beers. I guess that is my concern... they won't promote craft beers, therefore, they won't sell. It becomes a self-fulfilling prophecy.

 

[tntar heel]

As a distributor we pushed craft beers more because we made more off of those. You can make more off of 10 cases of craft beer than you can 30 cases of Bud Light.

This. It's more about profit margins and revenue. The companies know that if they can produce a better product for roughly the same price or even more elevated and sell at a premium, they aren't going try to promote the lower quality beer. They will keep producing it for the consumers who are in that demographic but would be foolish to discontinue a profitable product line that is expanding.

 

[MphsBlues]

I just hope Yuengling still holds on. That's usually what I drink, but venture elsewhere as well - just not ever to Bud, Miller, or Coors anything.

 

[theutvolunteers]

Depends on where you live or where you frequent bars. If you are talking downtown Nashville or Chattanooga, then I would agree with you. If you are in smaller towns, the good ole boys want their bud light/mick light/coors light and they don't drink that fruity/flavored/high dollar stuff. Add to it that the distributors won't have much incentive to try to push or promote the off brands/craft beers. I guess that is my concern... they won't promote craft beers, therefore, they won't sell. It becomes a self-fulfilling prophecy.

Who cares what small town folk do?

 

[theutvolunteers]

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