U.S. Challenges AB-InBev's Purchase of Grupo Modelo

Discussion in 'Beer News' started by jesskidden, Jan 31, 2013.

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  1. UCLABrewN84

    UCLABrewN84 Initiate (0) Mar 18, 2010 California

    High End Segment Advocate.
     
    jcb7472, Sarlacc83, JulianB and 33 others like this.
  2. Boilerfood

    Boilerfood Initiate (0) Jun 5, 2012 Indiana

    Can we get shirts with this printed on it?
     
  3. cavedave

    cavedave Grand Pooh-Bah (4,157) Mar 12, 2009 New York
    In Memoriam Pooh-Bah Trader

    Haha, as if there is a for profit industry that doesn't hope its competitors do poorly. This is news?

    It would be news if an internal memo said, "We really hope our competitors succeed, and we hope they are successful in causing our profits to go down drastically." That would be news. Some folks need to get a grip on what being in business actually means.
     
  4. taez555

    taez555 Pooh-Bah (1,784) Dec 9, 2002 Vermont
    Pooh-Bah

    They're a business trying to maximize their profit, what else are they gonna do?

    That being said, this is basically the reason I refuse to drink BMC products. People always say you should give beer a shot regardless of the brewer, but I call that bullshit on that. I refuse to drink their beer due to their business practice of actively trying to squash ALL competition, not to mention trick people into buying mediocre "craft" beer released under bogus names that hide the fact their brewed by them.

    But yeah... not really news.
     
    jcb7472, Naterobsnyk4, cjoc83 and 3 others like this.
  5. cavedave

    cavedave Grand Pooh-Bah (4,157) Mar 12, 2009 New York
    In Memoriam Pooh-Bah Trader

    I am with you, sort of. You lost me after the first sentence.

    ABI's flagship beers suck, so I son't drink them. I love BCBS and BCBCS and I can get them more easily now. If that is because of folks like you who understand that business is business, and still don't buy from companies like ABInBev, well, all I can say is thank you.
     
    JoeyBeerBelly and atoulouk like this.
  6. Lutter

    Lutter Initiate (0) Jun 30, 2010 Texas

    Was this an old email or something? Because it would seem to me that the purchase and inflow of cash into Goose Island over the past 2 years has only furthered their nightmare of "not let[ting] the industry transform."

    It sounds like they changed their tune (around late 2010/early 2011), agreed that change was happening, and rolled with it by entering the "High End Segment" with stuff like the Goose Island purchase and "premium" (I use big quotes there) offshoots of their main brands like Budweiser Black Crown, Bud Light Platinum, and Beck's Sapphire.
     
    steveh likes this.
  7. arfenhouse

    arfenhouse Initiate (0) Oct 29, 2012 California

    Buy more craft, not like I needed to say really say that.
     
    ddegennaro likes this.
  8. jesskidden

    jesskidden Grand Pooh-Bah (3,145) Aug 10, 2005 New Jersey
    Society Pooh-Bah Trader

    That article is a mess. He uses the volume market share of craft beer ("about 5%" - actually it's 5.7% according to the Brewers Association) and then the dollar market share of AB-InBev -"39%". (Craft's dollar share is 9.1% and AB-I's volume share is 46.9%. All figures are 2011's - 2012's not out yet for the most part.)

    He claims that 38 states ban self-distribution - the Brewers Association says it's allowed in 34 states and in D.C. And then he quotes a brewery owner in Ontario, Canada about the difficulty of distribution! Needless to say, the 50 US states' individual distributions laws are quite a bit different than Ontario's.

    For a more factual explanation of the DoJ's case against the AB-I/Modelo deal, see the actual DoJ complaint-

    The United States of America... brings this civil action under the antitrust laws of the United States to enjoin the proposed acquisition by Anheuser-Busch InBev SA/NV of the remainder of Grupo Modelo S.A.B. de C.V.

    In which it is explained that:
    The DoJ believes that AB-I's prices are kept low because Modelo/Crown higher-priced imported beers don't always go up in price when AB and/or MC raise their prices in lower segments - thus narrowing the gap between premium - above-premium - high-end segments. Also note that the two leading import brewers, Heineken (which includes Newcastle and now the Mexican brands of FEMSA- Tecate, Sol, Carta Blanca, Indio and Dos Equis, etc ) and Modelo/Crown alone have more dollar share of the US market - 13% - than all 2000+ "craft brewers" combined.
     
    Ranbot, beergurujr, afksports and 3 others like this.
  9. TheBeerAlmanac

    TheBeerAlmanac Initiate (0) Mar 3, 2011 Kentucky

    What exactly do you do, anyway? I feel like if ever there was a job title of beer ninja, you might be it.
     
  10. mborden

    mborden Zealot (653) Jan 28, 2009 New York

    "Better to remain silent and be thought a fool than to speak and to remove all doubt."
     
    Gunboat82 likes this.
  11. Hanzo

    Hanzo Initiate (0) Feb 27, 2012 Virginia

    In other news Microsoft wants to find a way to stop people from buying Apple products.
     
  12. TheBeerAlmanac

    TheBeerAlmanac Initiate (0) Mar 3, 2011 Kentucky

    Normally I'd just hit the "like" button and move on, but we're not necessarily talking about competing products like laptops or operating systems. Craft brewers have realized there's room to commingle as each respective brewery offers a desired product in its own right in the mind of their consumers. AB sees it as a winner take all competition, that it's their beer or no beer, which is horrible for the end consumer, us, who wants variety and quality. In the end it's still business and everyone's trying to make a buck, but MS vs. APPL is company vs. company and that's healthy competition that breeds quality. AB vs. craft beer is company vs. industry and that doesn't breed a better product, it stifles growth and oppresses the evolution of the industry.

    Sorry, didn't mean to get so serious, I think I need a beer. What time is it?
     
  13. Hanzo

    Hanzo Initiate (0) Feb 27, 2012 Virginia

    I agree with what you are saying, I was just pointing out that as a big business, of course AB wants to knock out their competiton, we don't need an article to know that.
     
    JulianB and TheBeerAlmanac like this.
  14. MN_Beerticker

    MN_Beerticker Initiate (0) Jul 10, 2012 Minnesota

    Well fellow David Advocates get out your slings. Let's help increase market share.
     
  15. MostlyNorwegian

    MostlyNorwegian Pooh-Bah (2,236) Feb 5, 2013 Illinois
    Pooh-Bah

    Corporate beer still sucks.
     
  16. mschofield

    mschofield Pooh-Bah (1,871) Oct 16, 2002 Massachusetts
    Pooh-Bah

    I think it is important, sure the assumption was BMC was trying to keep craft down and they'd do sneaky things to do it ("pay for play", fake craft brands etc..) but to go and write it down to me means they're not thinking "we need to do this" they're thinking "we have the right to do this"
     
  17. gwdavis

    gwdavis Initiate (0) Feb 8, 2012 Georgia

    I wish, but god knows the entire BMC crowd is constantly having favors done for it compliments of government regulation. The evil empire strikes again.
     
  18. MammaGoose

    MammaGoose Initiate (0) Jan 10, 2013 Wyoming

    I'd say that's a fairly obvious statement coming from A-B. Of course they want as many people used to buying their beer as possible. And for the better part of the century, Ameridan adjunct lagers were pretty much the only option of beer. If your product is sold to the vast majorty of beer drinkers, nearly the total population of beer drinkers, really...for a century...then ANY change in the market would be disconcerting. The craft beer world boomed pretty quickly. It was a niche that was easy to ignore for a few decades and then within the last decade or so, it got huge. So of course the BMC companies don't want it to keep progressing. I don't think we need "inside info" to assume that; it's obvious economics.

    I do find it interesting that they specifically say they cannot let the industry transform, but the BMC companies themselves are transforming. THEY are the ones changing their products/advertising a little bit and trying to ride the craft beer wave.
     
    cavedave likes this.
  19. frazbri

    frazbri Initiate (0) Oct 29, 2003 Ohio

    Legality comes down to the details.
     
  20. cavedave

    cavedave Grand Pooh-Bah (4,157) Mar 12, 2009 New York
    In Memoriam Pooh-Bah Trader

    Big business is favored by govt.? Wow, that is almost as big news as OP.
     
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