Incredible – It’s a New World!

It’s a done deal – InBev to buy A-B!

The Anheuser-Busch board of directors voted today in favor of Belgian brewer InBev’s $49.9 billion takeover offer, according to media reports.

Reports surfaced Friday that A-B’s board was poised to accept the offer from InBev, which boosted its offer by $5 to $70 a share in an effort to seal a friendly deal and create the world’s largest brewer.

The combined company, which is slated to house its North American headquarters in St. Louis, will be called Anheuser-Busch-InBev. A-B would have representation on the combined company’s board of directors, according to the article.

More to come on this one folks.

Comments

  1. GlacierBrewing says

    New World or New World Order?
    I am very curious (as are many, I’m sure) how the AB top brands, most notably Bud Light, with morph and grow under the InBev sun. Will the domestic InBev market share now gobble up more of the pie or will the existing AB share become fractured?
    I think it still remains to be seen if this merger will ultimately benefit or hurt the craft-brewer’s market.
    At any rate, it makes for good drama.

    Prost!
    Dave

  2. Butcher Scott says

    Now seems like a good time to once again ask our local, state and federal representatives why we (a country as a whole) are protecting laws that only serve interests that are now based on the other side of the world.

  3. Sauce says

    Scott, you beat me to that question!

    Whoever it is, wonder how long it will take for their marketing department/ad agency to latch on to that:D

  4. wildcrafter says

    And I wonder if that “biggest american brewer” will now be interested in 100% American genetics hops? Opportunity knocking- harvest is coming.;)

  5. Moonlight says

    I suspect that the biggest change we will see is an aggressive push of all the In-Bev import products into our microbrewery market niches.
    You know In-Bev is going to be in need of quick cash… If sales of A-B brands were flat, that isn’t the prize that In-Bev wanted; it is more the distribution channels for their high-profit products.
    We may soon think that A-B was a friendly company. Hold on to your hats.

  6. einhorn says

    I don’t believe that AB took in microbrews into their company-owned distributor portfolios out of the good of their hearts. They were forced to do so due to customer demand and probably to keep other new distributing competitors out of the picture. And the margin was probably also better.

    If InBud decides to de-list micros from these channels, an enterprising American will fill that niche and deliver the products that consumers are demanding.

  7. tsewong73 says

    The distribution dynamics were the things I was most concerned about on some of the earlier threads regarding this merger. At the very least, it’ll be interesting to see how this effects beer distribution and the availability of various brands on the local level.

  8. Jephro says

    Moonlight – I will be sitting on my hat for this one. I have a feeling In-Bud will be much more aggressive than A-B was in the micro market.

    On the other hand American Beer Just got A WHOLE LOT BETTER!! And Belgian beer just got really watered down.:p

  9. brewbong says

    A bigger picture is starting to paint itself, as I hatch my latest theory. Perhaps the folks in franchise states, that have signed on w/bud distributors in recent years should look at the validity of their agreements, as they may get squished out of a market they have been building by the new old kid in town? Anyone who has been victimized by brand suppression would be wary of this. Just some gloomy food for thought.

  10. Sulfur says

    I bet Coors will be relishing it’s Americana status and probably see an increase in sales simply on that note – the power of patriotism.

  11. scott isham says

    Haven’t Millers and Coors merged? Which in turned are owned by the South Africans?

  12. Woolsocks says

    Plus wasn’t Coors already merged with Molson?

    Here’s the cool part: Are there now any non-craft American breweries? It could be that the era of fizzy yellow American lager is over!

    Remember when we had to import good beer from Europe before craft took off? How ironic would it be if the Belgians started importing (more) American craft beer when they want something distinctive?

  13. GlacierBrewing says

    Wow! Did this thread take off from the start of my day!
    So now AB is owned by Belgiums, Coors is owned by Canadians, Miller is owned by South Africans.
    No maybe about it, next time someone comes into YOUR place asking for a “domestic” beer (meaning Bud, Coors, Miller), take the opportunity to educate them, “THEY are NOT domestic anymore! But craftbrewers ARE!!!!”

    OH THE IRONY!!!!(insert evil laugh here):D

    Prost!
    Dave
    Glacier Brewing

  14. Jephro says

    GlacierBrewing wrote:
    So now AB is owned by Belgiums, Coors is owned by Canadians, Miller is owned by South Africans.
    No maybe about it, next time someone comes into YOUR place asking for a “domestic” beer (meaning Bud, Coors, Miller), take the opportunity to educate them, “THEY are NOT domestic anymore! But craftbrewers ARE!!!!”

    Funny, I just got back from posting pretty much the same thing on our board in the restaurant for all of the servers to read when i clicked “new posts” and saw yours!!! I guess Great Minds do think alike. 😉

  15. GlacierBrewing says

    Too Funny, Jephro.
    Maybe your brewpub should merge with my brewery! 😀
    Prost!
    Dave
    Glacier Brewing

  16. BigWilley says

    I wonder how all the good ol boy NASCAR fans are going to feel about slugging down bottles of “European” beer! I see this as a great marketing opportunity for craft brewers.

  17. beertje46 says

    BigWilley wrote: I wonder how all the good ol boy NASCAR fans are going to feel about slugging down bottles of “European” beer! I see this as a great marketing opportunity for craft brewers.

    Well hell-fire boy [pause to spit tobaci juice], we just got raised up a notch er 2.

  18. BigWilley says

    First Toyota now Belgium! What’s a good a NASCAR fan to do? Im waiting for the BBC sponsored car!

  19. jesskidden says

    Woolsocks wrote:
    Are there now any non-craft American breweries?

    You mean, besides, D. G. Yuengling and Son Inc, Minhas Craft Brewery, City Brewing Co., August Schell Brewing Co., Iron City Brewing Co., Straub, Cold Springs Brewing Company, High Falls, F. X. Matt Brewing Co., Stevens Point, The Lion and Spoetzel? I think that’s all the pre-craft era breweries that are left that still have some or all of their production in the “adjunct light lager” category. Then there’s also the non-brewery owning “brewing companies”, Pabst and Dixie.

    Woolsocks wrote: It could be that the era of fizzy yellow American lager is over!

    Well, “over” except for the 90+% of the market that’s still made up of “light lager” and “light beers” from the breweries above and the now “foreign-owned” Big 3 and the vast majority of Canadian and Mexican imports. 😮

  20. Woolsocks says

    jesskidden wrote: You mean, besides, D. G. Yuengling and Son Inc, Minhas Craft Brewery, City Brewing Co., August Schell Brewing Co., Iron City Brewing Co., Straub, Cold Springs Brewing Company, High Falls, F. X. Matt Brewing Co., Stevens Point, The Lion and Spoetzel? I think that’s all the pre-craft era breweries that are left that still have some or all of their production in the “adjunct light lager” category. Then there’s also the non-brewery owning “brewing companies”, Pabst and Dixie.

    Well, “over” except for the 90+% of the market that’s still made up of “light lager” and “light beers” from the breweries above and the now “foreign-owned” Big 3 and the vast majority of Canadian and Mexican imports. 😮

    OK, OK. I’m just a little giddy because I can be less embarassed by American beer now, since mass-produced lager is no longer produced by any American company unless you count places like City Brewery as “mass” producers.

    I do wonder also how that fact will affect sales of those products. Any word on how the SAB thing affected sales of Miller products?

  21. beerking1 says

    The NOW number one American owned brewery is Sam Adams, according to the article referenced below. They also explain that Coors (ala Coors-Molson) is now Canadian owned.
    OBTW, A-B is now BRAZILIAN owned, although InBev has HQ in Belguim.
    OBTW 2, is there any better name for the InBev-Anheuser-Busch merger than “InBusch?” 😀

  22. Jephro says

    To which article are you referring?

    beerking1 wrote: is there any better name for the InBev-Anheuser-Busch merger than “InBusch?” 😀

    “In-Busch”:eek: …tee hee, that’s kind of a commentary too.
    I’m gonna use that one!!

  23. scott isham says

    If Boston Beer is indeed the biggest now, Jim Koch and his marketing people are going to have a field day.

  24. wildcrafter says

    I sure hope Sam Adams will be interested in American hops.

    Does Sam Adams still use whole leaf hops?

    I hear that the Inbev deal will crush all whole leaf hops for the pellets and extracts and aroma hops are a to be a thing of the past.:eek: