Anheuser-Busch InBev and SABMiller PLC to Potentially Merge

Press enter to search
Close search
Open Menu

Anheuser-Busch InBev and SABMiller PLC to Potentially Merge

By CGT Staff - 09/23/2015
Anheuser-Busch InBev (AB InBev) confirms that it has made an approach to SABMiller Plc's Board of Directors regarding a combination of the two companies. AB InBev's intention is to work with SABMiller's Board toward a recommended transaction.

If a takeover occurs of SABMiller, whose brands include Miller Genuine Draft, by AB InBev, the maker of Budweiser, it would combine the world's two biggest brewers.

Such a deal would certainly help the big beer companies grow international market share, but how would such a merger impact U.S. craft beer companies?
Rob Martindale, owner of Big Hops, a San Antonio chain of craft beer bars, isn’t convinced craft beer companies in the U.S would survive such a merger unscathed.

“A-B InBev will continue to buy up shelf space at retailers in the U.S. and in Texas, leaving fewer options for the consumer,” Martindale told the San Antonio Business Journal. “Distribution costs will rise and sales will drop for the small breweries due to less exposure in the marketplace.”

Overall beer sales based on volume in the U.S. increased 5 percent to more than 197 million barrels in 2014, according to the Brewers Association, a nonprofit group that promotes the American craft beer industry.

Craft beer sales volume increased nearly 18 percent last year to 21.8 million barrels, Brewers Association data shows.

For the full article click here: Local craft beer businesses weigh in on potential mega merger involving Anheuser-Busch InBev.